China’s major shipping operator COSCO Shipping Holdings and Shanghai International Port (Group) Co jointly announced a takeover offer on Sunday [9 July 2017] to all the shareholders of Hong Kong-based Orient Overseas Container Line Co (OOCL), COSCO announced on Sunday…Full Article: The Global Times July 2017

Key Point

  • Once the takeover is completed, China’s COSCO Shipping will be the world’s third largest logistics (i.e. container transport) company after Europe’s Maersk Line and Mediterranean Shipping Company (MSC).

ChinaAg Comments

  • In June 2017, COSCO Shipping Ports (Spain), a subsidiary of COSCO Shipping Ports, acquired a 51% stake in Spain’s Noatum Port Holdings for EUR 200 million (USD 224 million). During the same month, the Shanghai International Port Group and COSCO Shipping’s Piraeus Port Authority (PPA) signed two MoU agreements. At the time, the Shanghai International Port Group controlled 25.7% of China’s foreign trade (by volume), while the PPA was a subsidiary of China’s COSCO Shipping.
  • In May 2017, China COSCO Shipping Corporation and Jiangsu Lianyungang Port purchased a 49% stake (24.5% each) in Kazakhstan’s Khorgos-East Gate Special Economic Zone. The SEZ is located 15 km from China’s Xinjiang Region. Rail freight can reach Europe in roughly 10 days and Jiangsu Province’s Lianyungang Port in 5 days.
  • In early January/late February 2017, cargo transported by China COSCO Shipping Group arrived in Budapest, Hungary. The shipment’s sea route runs from China’s Port of Ningbo (near Shanghai) to Greece’s Port of Piraeus (near Athens), while its land route (railway) runs from Athens to Budapest. The route takes a total of 26 days from Ningbo to Budapest.
  • In January 2017, COSCO Shipping Ports increased its stake in the Port of Qingdao, Shandong Province, to 18.41%.
  • In May 2016, COSCO Pacific, a subsidiary of China COSCO Shipping Corp, signed an agreement to purchase 35% of the terminal from ECT Participations BV, a subsidiary of CK Hutchison Holdings. Euromax Terminal Rotterdam is an automatic container terminal that has an annual capacity of 3.2 million twenty-foot equivalent units (TEUS). In 2015, the terminal processed 2.28 million TEUs.
  • In April 2016, China Cosco Holding signed an agreement to acquire a 67% stake in the Port of Piraeus (Athens), Greece’s largest seaport and one of the largest in the Mediterranean Sea.
  • Since 2010, Piraeus Container Terminal, a subsidiary of China’s COSCO Shipping, has been operating Piers II and III at Piraeus port as part of a 35-year concession agreement.
  • Founded in 1986 and headquartered in Hong Kong, Orient Overseas International (HKG:0316) is a logistics and container (TEU) transport company.

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