Shanghai International Port Group Co (SIPG), China's largest
port by cargo throughput, yesterday said it will take a majority
stake in the proposed joint venture with Jiujiang port, a move seen
as part of the company's strategy to secure outbound freight in the
lower and middle reaches of the Yangtze River.
According to a statement to the Shanghai Stock Exchange, SIPG
will hold 91.67 percent of the joint venture, worth an estimated
550 million yuan.
Jiujiang port, controlled by the Jiujiang State-owned asset
supervision and administration commission, is one of the 13 major
ports along the Yangtze River. The Jiujiang asset commission will
hold the remaining 8.33 percent stake.
SIPG operates Yangshan deepwater port, east of Hangzhou Bay. On
completion by 2020, the port will be one of the world's largest
with a capacity of handling 20 million TEUs of containers a
year.
"Leveraging on the Yangshan deepwater port, SIPG is increasing
the transit cargo ratio of total throughput, which is an important
parameter for judging the size and efficiency of an international
shipping center," said Li Yuezhen, a press officer for SIPG.
Li said purchasing Jiujiang port was part of the company's
expansion strategy along the Yangtze River. "The company will
invest in more ports in the middle and lower reaches of the Yangtze
in future to explore central and western China as the new freight
sources."
"The move is also in response to the government's call to build
a national navigation hub to better serve the Yangtze River Delta
and the inland areas," she added.
Lu Congzhen, a marine industry analyst at Orient Securities in
Shanghai, said the purchase of more inland ports would not only
benefit SIPG but also the entire marine industry in China.
"The inclusion of Jiujiang port and others river ports in SIPG's
map helps the company expand the freight sources in the industrial
heartland in central and west China," said Lu.
Industry analysts say Shanghai is playing a crucial part in
helping integrate the transportation systems in the Yangtze River
Delta region. "SIPG's cooperation with more inland river ports
helps consolidate Shanghai's position as the nation's shipping
center," said Qian Hongwei, an analyst at CITIC China
Securities.
(China Daily January 15, 2008)
