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| Friday, September 05, 2008 23:38:14 |
COSCO to invest more in Shanghai container terminal
COSCO Pacific, controlled by the largest shipper in the Mainland, China Ocean Shipping, has agreed to increase its investment in Zhangjiagang Win Hanverky container terminal near Shanghai, to boost its Yangtze River Delta container throughput, The Standard reported.
Under the deal between connected parties, shareholders of the terminal - jointly owned by COSCO and Zhangiagang Port Group - are required to increase registered capital to 36.8 million US dollars from 16.8 million US dollars. COSCO's total investment amount in the Zhangjiagang terminal is to rise to 75 million US dollarsfrom 30 million US dollars, said the paper.
The agreement, costing COSCO US$10.5 million, allows the company to maintain its 51 percent stake in the port, while the Zhangiagang Port Group retains 49 percent interest.
The company has been seeking expansion opportunities through investments in terminal and logistics projects that are closely related to its core business in the Yangtze River Delta, thereby participating in the development of the region to benefit from its economic growth. COSCO has acquired controlling or partial interests in container terminals at ports including Zhangjiagang, Shanghai, Yangzhou and Nanjing.
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