China Shipping Group, the world's sixth largest shipping conglomerate by capacity, is seeking diversification into the cargo terminal business through domestic and international acquisitions.
Following a deal sealed with Yingkou Port Group, the shipping conglomerate is set to sign another co- operation agreement later this month with a container terminal in Egypt's Mediterranean port of Damietta.
It plans to take a 20 percent stake in the terminal.
"We not only consider Yingkou Port as one of the most profitable ports in China," said Li Shaode, the president of China Shipping Group.
"We are also heeding the 17th Communist Party Congress call to help build and strengthen related industry in northern China, which can benefit our business at the same time."
Li said the group was considering assigning its 40 percent stake in Yingkou Port Group to China Shipping Container Lines (2866) later.
The group is eager to increase its presence in the port business globally and will inject assets acquired into CSCL, the group's cargo shipping spin- off.
China Shipping Group intends to go ahead with CSCL's A-share listing, Li said adding that "proceeds will be used to build more ships and acquire ports."
He did not outline a timeframe for the A-share float.
CSCL's managing director, Huang Xiaowen, admitted that soaring crude oil price is adding to the operating costs, but that the impact will be minimal because it has oil reserves purchased for between "US$53 (HK$413.40) and US$56 early this year."
Li said the group will also cooperate with Sinopec (0386), PetroChina (0857) in a liquefied natural gas supply project in northern China.
CSCL's H share jumped 9.24 percent yesterday against the weak performance of the Hang Seng Index to close at HK$8.16.
|
