Pacific Basin Shipping in mainland terminal deal
Pacific Basin Shipping, a Hong Kong-listed dry-bulk shipper, is making a foray into maritime infrastructure though a joint-venture with a state- owned port company to partly own and operate a new cargo terminal in the mainland.
Pacific Basin Shipping said yesterday it entered into an agreement to buy 45 percent interest in Nanjing Longtan Tianyu Terminal, a subsidiary of Nanjing Port Group, which is building a cargo terminal on the Yangtze River.
The company will make an equity investment of US$16 million (HK$124.8 million) in the project, which requires total outlay of US$74 million, it said in a statement.
Richard Hext, chief executive of Pacific Basin Shipping, described Nanjing Port Group as a "reputable and experienced partner."
Longtan Tianyu is a part of larger Longtan port and logistics base development on the eastern outskirts of Nanjing, and is expected to be operational in August, according to Pacific Basin. "This is a strategically valuable project that gives Pacific Basin a foothold in the China ports business and affords us a broader role in the dry cargo supply chain in an area where our ships trade on a regular basis," said Wang Chunlin, executive director of Pacific Basin Shipping.
In a separate statement, the company said it has agreed to sell two handy-size [dry-bulk] vessels for US$45 million each. Both vessels are being sold to a Japanese buyer, and will be chartered back immediately for 11-13 months so that the company's fleet size will not be reduced, the company said.
The company now operates a fleet of 116 vessels. It estimated a disposal gain of US$33.1 million from the sale.
Pacific Basin's earnings fell 25 percent last year because of a softer dry- bulk shipping market.
Net income last year shrank to US$110.3 million from US$147.1 million in 2005, in spite of a 43 percent rise in revenue to US$620.4 million.
Pacific Basin Shipping said yesterday it entered into an agreement to buy 45 percent interest in Nanjing Longtan Tianyu Terminal, a subsidiary of Nanjing Port Group, which is building a cargo terminal on the Yangtze River.
The company will make an equity investment of US$16 million (HK$124.8 million) in the project, which requires total outlay of US$74 million, it said in a statement.
Richard Hext, chief executive of Pacific Basin Shipping, described Nanjing Port Group as a "reputable and experienced partner."
Longtan Tianyu is a part of larger Longtan port and logistics base development on the eastern outskirts of Nanjing, and is expected to be operational in August, according to Pacific Basin. "This is a strategically valuable project that gives Pacific Basin a foothold in the China ports business and affords us a broader role in the dry cargo supply chain in an area where our ships trade on a regular basis," said Wang Chunlin, executive director of Pacific Basin Shipping.
In a separate statement, the company said it has agreed to sell two handy-size [dry-bulk] vessels for US$45 million each. Both vessels are being sold to a Japanese buyer, and will be chartered back immediately for 11-13 months so that the company's fleet size will not be reduced, the company said.
The company now operates a fleet of 116 vessels. It estimated a disposal gain of US$33.1 million from the sale.
Pacific Basin's earnings fell 25 percent last year because of a softer dry- bulk shipping market.
Net income last year shrank to US$110.3 million from US$147.1 million in 2005, in spite of a 43 percent rise in revenue to US$620.4 million.