China Merchant unit expands with port investment

Shenzhen Chiwan Wharf Holding, a port unit of China Merchant's Group, have acquired a 40 percent stake in Laizhou port in Shandong province, reflecting its optimism due to the rebound of global trade this year after the financial recession, China Daily reported.

Shenzhen Chiwan, last week signed an agreement with a port logistics firm in Shenzhen to invest US$109.8 million for a 40 percent stake in Zhonghai Port Development, the container operator of Laizhou Port.

The Shenzhen-listed company, based in south China's Pearl River Delta is engaged in the handling, storage and transportation of containers and bulk cargo.

The targeted company, a subsidiary of State-owned China Overseas Holdings, operates 12 berths with a capacity of 25 million tonnes.

The company said it will seek further port investment opportunities to extend its presence across the country.

The company has been vying for port investment beyond Guangdong province for years, but its extension plans were hindered due to the global recession in the past two years.

Source: Cargo News Asia