Cosco and Yantian to buy into Fuzhou port
Hong Kong-listed Cosco Pacific, a subsidiary of the Cosco Group, is in talks to bring a partner into its plan to take a 30 per cent stake in the operations of Fuzhou Port, the South China Morning Post reports.
Cosco signed a letter of intent with Fujian Provincial Communication Transportation (Shareholding) to acquire an equity interest in the port last year. Sources say that Cosco plans to join with Shenzhen state-owned port manager Yantian Port Group, with Cosco buying a 20 percent stake, and Yantia acquiring 10 per cent.
Fuzhou Port has been chosen by China's Ministry of Communications to conduct trial runs of direct transport links between the mainland and Taiwan.
Fuzhou handled 330,000 TEUs of trial direct-link cargo last year. Cosco is betting on the fact that existing restrictions on vessels crossing the strait will be lifted in two months time.
These bans have been in place for over five decades. Their removal will allow shipping lines to skip transits in ports in Hong Kong and Japan, which will save both time and money.