COSCO Pacific plans to move from being a pure container play to becoming an integrated port operator to secure stable revenue streams in the potentially volatile box-trade sector.
"We have signed letters of intent for investment in three ports in China, of which Haikou and Fuzhou are integrated ports, vice chairman and managing director Xu Minjie said after an annual general meeting Thursday.
COSCO Pacific will take a more than 70 percent stake in a joint venture that will manage and operate container, bulk and ferry terminal operations at Haikou port in Hainan.
It will also take a 30 percent stake in Fuzhou Port Group, which operates container, bulk cargo and other terminal units. Fuzhou port, located in Fujian, will be the company's first integrated port.
Xu gave no details on the two investments as they have yet to be finalized but he said "the deals should be finalized this year."
COSCO Pacific said earlier it plans capital expenditure of US$777 million (HK$6.06 billion) this year, of which US$350 million will be used to acquire terminals. Xu said Thursday that figure may rise with the company's plan to acquire terminals.
The company said it handled 11.9 million containers in the first four months of this year, up 24 percent compared with the same period last year. It is aiming to acquire 20 berths a year until 2010.
In a recent research report, Goldman Sachs said COSCO Pacific's move to diversify is a "mildly positive move."
"Haikou involves a restructuring of some loss-making operations, which is unlikely to be completed until end- 2008, and profitability from existing operations at Fuzhou and Jiangdu [in Jiangsu province] is modest," analyst Mike Warren said in the report.
Meanwhile, Xu said the company is interested in seeking a listing on a mainland bourse and that preliminary work has started.
The company's shares were up 2.35 percent to close at HK$20.45 Thursday.
"We have signed letters of intent for investment in three ports in China, of which Haikou and Fuzhou are integrated ports, vice chairman and managing director Xu Minjie said after an annual general meeting Thursday.
COSCO Pacific will take a more than 70 percent stake in a joint venture that will manage and operate container, bulk and ferry terminal operations at Haikou port in Hainan.
It will also take a 30 percent stake in Fuzhou Port Group, which operates container, bulk cargo and other terminal units. Fuzhou port, located in Fujian, will be the company's first integrated port.
Xu gave no details on the two investments as they have yet to be finalized but he said "the deals should be finalized this year."
COSCO Pacific said earlier it plans capital expenditure of US$777 million (HK$6.06 billion) this year, of which US$350 million will be used to acquire terminals. Xu said Thursday that figure may rise with the company's plan to acquire terminals.
The company said it handled 11.9 million containers in the first four months of this year, up 24 percent compared with the same period last year. It is aiming to acquire 20 berths a year until 2010.
In a recent research report, Goldman Sachs said COSCO Pacific's move to diversify is a "mildly positive move."
"Haikou involves a restructuring of some loss-making operations, which is unlikely to be completed until end- 2008, and profitability from existing operations at Fuzhou and Jiangdu [in Jiangsu province] is modest," analyst Mike Warren said in the report.
Meanwhile, Xu said the company is interested in seeking a listing on a mainland bourse and that preliminary work has started.
The company's shares were up 2.35 percent to close at HK$20.45 Thursday.