Beihai Port Company seeks merger with two nearby ports
The operation of southwest China's Beihai Port at Guangxi's Beibu Gulf, the Beihai Port Company Limited is re-organising its assets and preparing for an initial public offering, Xinhua reported.
Industry insiders say the company's largest shareholder, Guangxi Beibu Gulf International Port Group, will likely inject its assets of the region's largest port of Fangcheng and second largest port of Qinzhou into Beihai Port Company before it lists.
The Guangxi Beibu Gulf International Port Group was founded to integrate the functions of the three ports of Fangcheng, Beihai and Qinzhou in the region. According to an analyst from a domestic security company, the foundation of Guangxi Beibu Gulf International Port Group has successfully co-ordinated the functions of the three ports and ended years of competition, much enhancing their efficiency.
However, an analyst from another domestic security company quoted by the report said the Beihai Port has had the idea of integration for years but didn't undertake it because of its poor financial and operating condition.
Both the analysts said Beihai Port Company is facing a challenge in carrying out its integration plan because its throughput was the smallest among the three. According to the statistics in last year, Port of Fangcheng's throughput was five times of Beihai's while Qinzhou's had doubled.
But the analysts said the integration plan will greatly benefit Beihai Port's future development if successfully carried out.
Beibu Gulf is the nearest gateway for ocean shipping for China's southwest region. Beijing has approved of Qinzhou Port's application to set up Qinzhou Bonded Port Area in June, which will be the first bonded port area in southwest China and will enhance the regional port's status.
Industry insiders say the company's largest shareholder, Guangxi Beibu Gulf International Port Group, will likely inject its assets of the region's largest port of Fangcheng and second largest port of Qinzhou into Beihai Port Company before it lists.
The Guangxi Beibu Gulf International Port Group was founded to integrate the functions of the three ports of Fangcheng, Beihai and Qinzhou in the region. According to an analyst from a domestic security company, the foundation of Guangxi Beibu Gulf International Port Group has successfully co-ordinated the functions of the three ports and ended years of competition, much enhancing their efficiency.
However, an analyst from another domestic security company quoted by the report said the Beihai Port has had the idea of integration for years but didn't undertake it because of its poor financial and operating condition.
Both the analysts said Beihai Port Company is facing a challenge in carrying out its integration plan because its throughput was the smallest among the three. According to the statistics in last year, Port of Fangcheng's throughput was five times of Beihai's while Qinzhou's had doubled.
But the analysts said the integration plan will greatly benefit Beihai Port's future development if successfully carried out.
Beibu Gulf is the nearest gateway for ocean shipping for China's southwest region. Beijing has approved of Qinzhou Port's application to set up Qinzhou Bonded Port Area in June, which will be the first bonded port area in southwest China and will enhance the regional port's status.