Cosco Pacific to buy ports in China, SEA

0
480

Hong Kong-based Cosco Pacific is in negotiations to buy ports in China, Southeast Asia, and Greece after selling its container manufacturing unit to parent company Cosco Group.

The port operator, which sold its container manufacturing unit for US$1.2 billion, aims to focus on its core business of port and container leasing.

The company plans to invest in ports in Qingdao, Guangzhou and Rizhao in China, and those in Indonesia, Myanmar, and Malaysia.

It is reportedly in talks with China port authorities that are set to list their port assets on the stock market.

As for Southeast Asia, the shipping line expects more trade activity in the area as it moves to become a single economic market and as more companies relocate to the subregion to benefit from its lower labor and land costs.

Additionally, the company is banking on trade opportunities arising from growing ties between Southeast Asia and China.

Cosco Pacific is also interested in investing in the Port of Piraeus in Greece, as the Greek authorities must privatize state-owned enterprises as a condition for the European Union’s bailout package.

 

Photo: jgmorard