PAS Int'l acquires stake in container terminal in E China

Singapore's port operator PSA International has acquired a 49 percent stake in a container terminal firm based in China's eastern port city of Lianyunggang at the cost of 674 million yuan (108 million U.S. dollars). local daily Lianhe Zaobao reported Wednesday.

The transaction, still subject to approval by Chinese authorities, marks the company's "first foray into the Yangtze River Delta region -- one of the most important economic regions in China," it said.

PSA International acquired the stake through a subsidiary that joined Lianyungang Port Group to take over the 55 percent stake in Lianyungang New Oriental International Container Wharf Co., Ltd from Hong Kong-listed China Shipping Container Lines at the total cost of 756 million yuan (121 million U.S. dollars).

Lianyungang New Oriental International Container Wharf was a joint venture established by China Shipping Container Lines and Lianyungang Port Group, with Lianyungang Port Group holding a 45 percent stake at the time of its establishment.

PSA International said its joint venture firm with Lianyungang Port Group will take over the operation of the container terminal after the transaction is completed.

The container terminal involved in the transaction has a designed capacity of 2.8 million TEUs (twenty-foot equivalent units) and will be a premium facility to service mega container vessels. It has 1,700 meters of quay length and a water-depth of 16.5 meters. It is expected to commence operations in 2014.

Tan Chong Meng, chief executive officer of PSA International, said that Lianyungang's strategic location, established transport infrastructure and extensive hinterland offer tremendous potential for the joint venture to ride the waves of continuous growth in the Yangtze River Delta region.

Lianyungang is home to the eastern end of a continental railway that runs through China and Europe and is an important port in eastern China.

PSA International started exploring the Chinese mainland market in 1996. So far, it has investments in 10 container terminals in port cities such as Dalian, Tianjin, Fuzhou, Dongguan and Guangzhou.