PSA invests in China’s largest inland railway container terminal network
PSA International has invested in China United International Rail Containers Co., Limited, a Sino-Foreign joint venture with a mandate from the government of the People’s Republic of China to develop and operate 18 railway container terminals within the country.
The investment makes PSA the only global terminal operator with shareholding in CUIRC currently, and is carried out through the acquisition of Hong Kong-based Luck Glory International Limited, which owns 15.33% stake in CUIRC.
The inland railway container terminals are strategically located at regional economic centres across the country to form the core of China’s intermodal transportation network. There are currently 10 terminals in operation – in Kunming, Chongqing, Chengdu, Zhengzhou, Wuhan, Xi'an, Dalian, Qingdao, Ningbo and Tianjin.
The deal also marks the PSA Group’s first foray into China’s railway container terminal facilities and extends its network in China beyond its 11 coastal container terminals in Dalian, Fuzhou, Guangzhou, Tianjin, Dongguan, Lianyungang and Guangxi Beibuwan (Qinzhou).
Today, China’s railway container sector only carries about 2% to 3% of the country’s seaport container volumes, compared to other markets such as Europe and the USA where the rail sector takes up 15% to 40% of container volumes. The potential for further growth of China’s railway contai ner sector is support ed by China’s ongoing 2 of 2 initiatives – such as the ‘One Belt One Road’ and ‘Western Region Development Program’ – and progressive railway reforms.
CUIRC was established in 2007 and is headquartered in Beijin g. Set up under China’s former Ministry of Railways (MOR), it be came part of China Railway Corporation (CRC) in March 2013 after the MOR was dissolved and CRC took over the role of the National Railway Operator. Besides PSA, ot her joint venture partners include China Railway Container Transport Co rp. Ltd, NWS Holdings Limited, China International Marine Containers (Group) Ltd, and Deutsche Bahn Mobility Logistics AG.
About PSA International
As one of the leading global port groups, P SA participates in around 40 terminals in 16 countries across Asia, Europe and the Americas with flagship operations in PSA Singapore Terminals and PSA Antwerp.