Cosco in talks to invest in Taiwan terminal

State-owned China Ocean Shipping (Group) is in talks to invest in a container terminal in the Taiwan city of Kaohsiung that is being jointly developed by port investor Yang Ming Marine Transport Corp and the Taiwan government.

"The deal, if completed, would be done by our port investment arm Cosco Pacific and Yang Ming Marine, but no details have been concluded yet," Cosco Group president Wei Jiafu told Dow Jones Newswires on the sidelines of a shipping summit.

China Ocean Shipping (Group) is the parent of shipping operator China Cosco Holdings and blue-chip Cosco Pacific.

Yang Ming Marine said in October it received separate offers from Cosco Pacific's ultimate parent, China Ocean Shipping (Group), and China Merchants Group for a total of a 40 percent stake in a US$629.66 million terminal in Taiwan's largest port.

If the planned investment receives approval from the Taiwan government, it would be the first in a Taiwan port by a mainland China entity.

Separately, Wei said the container shipping industry has been recovering but its outlook remains volatile if supply of new ships continues to outpace demand.

He added the Baltic Dry Index, an indicator of dry-bulk freight rates, is expect to reach 3,500 next year, driven by China's robust domestic consumption and demand for iron ore. The index ended at 2482 on Monday.
(Source:www.cargonewsasia.com)