China COSCO Holdings Ltd has signed a memorandum of understanding (MOU) to purchase a controlling stake in the expansion of the fast-growing Lianyungang port in China's Jiangsu province.
China COSCO is a division of Shanghai's global shipping powerhouse China Ocean Shipping (Group) Company (COSCO).
The state-owned conglomerate is in exclusive discussions to buy up to 55% stake in the $861.2 million expansion project, said deputy party secretary of the Lianyungang Port Group Huang Cheng to the South China Morning Post yesterday.
According to the terms of the MOU, the final agreement will be signed by end-2007 and the expansion project will include the development of 11 berths to be completed over the next few years.
When operational, total container handling capacity at the port will rise to 4.0 million twenty-foot equivalent units (TEUs).
Lianyungang is expected to handle 2.0 million TEUs this year, up from the 1.3 million TEUs last year, making it one of the fastest growing container ports in China.
Meanwhile, the port authority in Yangshan has invited Maersk to invest in the port, while Tianjin port invited Maersk and COSCO Pacific, a China COSCO subsidiary, to partner in its Beigangchi port development.
China COSCO is a division of Shanghai's global shipping powerhouse China Ocean Shipping (Group) Company (COSCO).
The state-owned conglomerate is in exclusive discussions to buy up to 55% stake in the $861.2 million expansion project, said deputy party secretary of the Lianyungang Port Group Huang Cheng to the South China Morning Post yesterday.
According to the terms of the MOU, the final agreement will be signed by end-2007 and the expansion project will include the development of 11 berths to be completed over the next few years.
When operational, total container handling capacity at the port will rise to 4.0 million twenty-foot equivalent units (TEUs).
Lianyungang is expected to handle 2.0 million TEUs this year, up from the 1.3 million TEUs last year, making it one of the fastest growing container ports in China.
Meanwhile, the port authority in Yangshan has invited Maersk to invest in the port, while Tianjin port invited Maersk and COSCO Pacific, a China COSCO subsidiary, to partner in its Beigangchi port development.