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Cosco Shipping Ports gained from OCEAN Alliance calls in 2017

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Cosco Shipping Ports (CSP) has been reaping the benefits of the consolidation of the container lines in the past year, with calls from members of the OCEAN Alliance, of which parent Cosco Shipping is a member, not only rising but expected to drive growth going forward as well.

CSP noted in its annual results statement that since the OCEAN Alliance began operating in April, it has been increasing its calls to CSP terminals and accounted for 44% of the total throughput of the group’s subsidiaries for the year. “The group believes the calls of the OCEAN Alliance’s fleet will continue to drive the growth of the group’s throughput going forward,” CSP added.

CSP was ahead of this curve when it began investing in its overseas ports in the last few years. This was driven by the “Ports For All” development concept, which had three strategic directions for terminal business development: to develop a global terminal network; to achieve synergies between parent company, Cosco Shipping and the OCEAN Alliance; and to strengthen the control and management of the ports and terminals business.

It noted that the alliance has more than 41 routes on the Eastwest-bound and Middle East Red Sea-bound trades and a combined fleet of 350 container vessels. During the year it boosted stakes in terminals in Belgium and Spain, completing its terminal network in the Mediterranean and Northwest Europe while also extending its reach to the Middle East with investment in Abu Dhabi Khalifa Terminal Phase II. Going forward, investment focus will shift to Southeast Asia, Latin America and Africa to continue extension of its network, CSP said.

Growth was also driven by the gathering pace of growth in China’s economy with rising imports and exports fuelled by increasing demand, CSP said. Perhaps giving an indication of the nature of changing trade flows brought about by the new alliances, among its Chinese ports that CSP singled out as benefitting from the OCEAN Alliance, were ports such as Xiamen Ocean Gate Terminal in the Southeast coast cluster as well as Guangzhou Nansha Terminal and Guangzhou South China Ocean Gate Terminal.

CSP also noted good performances at its other Southeast Coast ports such as Quan Zhou Pacific Container Terminal and Jinjiang Pacific Terminals, which benefitted from increased regional trade and integrated marketing activities, the group said.

For the year, overall throughput rose 13% to 87.9m teu from 77.6m teu in 2016.

Looking ahead, CSP ssaid: “In 2018, the group will fully leverage the synergies with Cosco Shipping and the OCEAN Alliance, strengthen its service capability to serve shipping alliances and continue to improve its global container transshipment hub network, so as to seize the business opportunities offered by the huge market of the OCEAN Alliance.”

In addition, CSP also said it continue to establish close partnerships and good relationships with port groups, terminal operators and international liner companies, such as its agreement with CMA CGM, to capture more business opportunities.

In terms of future investments, CSP would “continue to exert its competitive advantages to further optimise its global terminal network by exploring investment opportunities in Southeast Asia, South Asia, West Asia, Africa, the Americas and Latin America”, it said.