China Merchants, Qingdao in new venture

China Merchants Holdings (International) intends to further deepen co-operation with Qingdao Port (Group) through a potential equity investment.

The two groups signed an agreement on Saturday forming a second joint venture to consolidate their bulk cargo terminal resources in the city, China Merchants managing director Hu Jianhua told the South China Morning Post.

Seven bulk cargo terminals in western Qingdao - two from China Merchants and five from Qingdao Port - will be injected into the joint-venture company.

China Merchants holds a 49 per cent stake in the joint venture, which has terminal assets valued at US$164.84 million and a term of operation of 50 years. The seven terminals will handle 16.5 million tonnes of bulk cargo a year.

Last year, China Merchants consolidated its container terminals with Qingdao Port by forming Qianwan United Container Terminals. The joint venture, 50 per cent owned by China Merchants and 50 per cent by a consortium led by Qingdao Port, has a term of operation of 50 years.

Qingdao Port saw a five per cent growth in container throughput last year, when most ports nationwide were battered by the economic crisis. It predicts container throughput will grow to 12 million TEUs this year and reach 16 million TEUs in 2012.
(Source:www.cargonewsasia.com)