Singapore-headquartered PSA said it had signed a sale and purchase agreement to acquire stakes in in new terminal in Lianyungang Port. A joint venture between PSA and Lianyungang Port Group will own and run the 2.8m teu capacity terminal due to start operations in 2014.
No financial details were disclosed, however, CSCL’s terminals arm had been previously reported to be looking at selling its 55% stake in Lianyungang New Oriental International Container Terminal for at least $124m. CSCL reported a third quarter loss of $66.2m.
The joint venture is targeting trade from the hinterland of Shandong and Jiangsu provinces and also highlighted rail connections central and western regions of China.
“Lianyungang Port handles the highest intermodal container volume by sea and rail in China, servicing the hinterland of Central and West China,” commented Bai Li Qun chairman of Lianyungang Port Group.
PSA ceo Tan Chong Meng said: “Lianyungang’s strategic location, established transport infrastructure and extensive hinterland offer tremendous potential for this joint venture to ride the waves of continuous growth in the Yangtze River Delta region.”
The deal is subject to regulatory approvals.
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