Shekou CT to merge into mega terminal on DP World sale
DP World and China Merchants Holdings International (CMHI) have reached an agreement for DP World to sell its minority holding, along with another minority shareholder in two of the Shekou Container Terminals in Shenzhen for US$228.5 million. DP World acquired the holdings in the Shekou Container Terminals as part of the acquisition of P&O earlier this year.
The move is designed to enable CMHI to merge its three adjacent terminals in the Pearl River Delta port into a single container terminal, named Mega SCT. "Customers will see no change in the level of service they receive at Shekou. Like DP World, CMHI is committed to providing shipping lines with top quality services aimed at improving supply chain efficiency," said DP World senior vice president and managing director for Asia Pacific Peter Wong in a company statement. CMHI previously owned 50 per cent of Shekou Container Terminal 1, and 51 per cent of Terminal 2 plus 100 per cent of the adjoining Terminal 3. "This adjustment rebalances our China portfolio in line with our strategic vision. We will re-invest the proceeds into assets that fit our long-term plan to meet customer needs in the region going forward," said Mr Wong. Closure is expected in the first quarter 2007 after approval is given by CMHI shareholders.
This latest transaction comes shortly after DP World entered an agreement on December 11 to sell the US terminals to AIG. That deal is also expected to be wrapped up in the first quarter of next year.
The move is designed to enable CMHI to merge its three adjacent terminals in the Pearl River Delta port into a single container terminal, named Mega SCT. "Customers will see no change in the level of service they receive at Shekou. Like DP World, CMHI is committed to providing shipping lines with top quality services aimed at improving supply chain efficiency," said DP World senior vice president and managing director for Asia Pacific Peter Wong in a company statement. CMHI previously owned 50 per cent of Shekou Container Terminal 1, and 51 per cent of Terminal 2 plus 100 per cent of the adjoining Terminal 3. "This adjustment rebalances our China portfolio in line with our strategic vision. We will re-invest the proceeds into assets that fit our long-term plan to meet customer needs in the region going forward," said Mr Wong. Closure is expected in the first quarter 2007 after approval is given by CMHI shareholders.
This latest transaction comes shortly after DP World entered an agreement on December 11 to sell the US terminals to AIG. That deal is also expected to be wrapped up in the first quarter of next year.