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Ningbo-Zhoushan raising $1.6bn to fund port expansion

Photo: Ningbo - Zhoushan Ningbo-Zhoushan port.jpg
Ningbo-Zhoushan Port Company plans to issue A-shares to Shanghai International Port Group (SIPG) and its parent company Ningbo-Zhoushan Port Group to raise up to RMB11.215bn ($1.6bn) for construction of port expansion projects.

According to the proposal, RMB8.9bn ($1.27bn) fund will be used for No.6-No.10 container terminal projects at Meishan port area, the second phase ore terminal project and No.1 container terminal project at Chuanshan port area, general cargo berth renewal project at Beilun port area and other infrastructure construction.

The share issue to SIPG is a significant move of the company to optimize the equity structure and promote synergetic development of the ports in Yangtze river delta, said Ningbo-Zhoushan Port Company.

Upon the completion of the whole project, Ningbo-Zhoushan port will newly add 5.56m teu container handling capacity annually and 20m tonnes of ore handling capacity.

The remaining funds will be used for repaying bank loans and improving the financial status.

TAGS: Ports Asia