Shanghai group buys inland port of Jiujiang
Shanghai International Port (Group) Co. Ltd. (SIPG) is to take a majority stake in an upcoming $75.8 million joint venture (JV) expansion of the inland Yangtze River port of Jiujiang.
Buying into Jiujiang port is said to be part of SIPG strategy to 'secure outbound freight in the lower and middle reaches of the Yangtze River'.
SIPG will own 91.67% of the JV while the Jiujiang state-owned asset supervision and administration commission, which controls Jiujiang port, will own the remaining 8.33%.
According to SIPG press officer Li Yuezhen, purchasing Jiujiang port was part of the company's expansion strategy along the Yangtze River.
“The company will invest in more ports in the middle and lower reaches of the Yangtze in future to explore central and western China as new freight sources,” said Li.
Li said that “the move is also in response to the government's call to build a national navigation hub to better serve the Yangtze River Delta and the inland areas.”
“Leveraging on Yangshan deepwater port (Shanghai), SIPG is increasing the transit cargo ratio of total throughput, which is an important parameter for judging the size and efficiency of an international shipping center,” Li added.
2007 saw Shanghai retain its position as the world's busiest cargo port for the third year running with the past five years seeing cargo volumes more than double.
Rapid development of the Chinese economy and the large industrial and trade base of the Yangtze River Delta region have propelled growth.
According to Lu Congzhen, a marine industry analyst at Orient Securities, “the inclusion of Jiujiang port and other river ports in SIPG's map helps the company expand freight sources in the industrial heartlands of central and west China.”
Industry analysts mostly agree that Shanghai is playing a crucial part in helping integrate the transportation systems in the Yangtze River Delta region.
“SIPG's cooperation with more inland river ports helps consolidate Shanghai's position as the nation's shipping center,” said Qian Hongwei, an analyst at CITIC China Securities.
Buying into Jiujiang port is said to be part of SIPG strategy to 'secure outbound freight in the lower and middle reaches of the Yangtze River'.
SIPG will own 91.67% of the JV while the Jiujiang state-owned asset supervision and administration commission, which controls Jiujiang port, will own the remaining 8.33%.
According to SIPG press officer Li Yuezhen, purchasing Jiujiang port was part of the company's expansion strategy along the Yangtze River.
“The company will invest in more ports in the middle and lower reaches of the Yangtze in future to explore central and western China as new freight sources,” said Li.
Li said that “the move is also in response to the government's call to build a national navigation hub to better serve the Yangtze River Delta and the inland areas.”
“Leveraging on Yangshan deepwater port (Shanghai), SIPG is increasing the transit cargo ratio of total throughput, which is an important parameter for judging the size and efficiency of an international shipping center,” Li added.
2007 saw Shanghai retain its position as the world's busiest cargo port for the third year running with the past five years seeing cargo volumes more than double.
Rapid development of the Chinese economy and the large industrial and trade base of the Yangtze River Delta region have propelled growth.
According to Lu Congzhen, a marine industry analyst at Orient Securities, “the inclusion of Jiujiang port and other river ports in SIPG's map helps the company expand freight sources in the industrial heartlands of central and west China.”
Industry analysts mostly agree that Shanghai is playing a crucial part in helping integrate the transportation systems in the Yangtze River Delta region.
“SIPG's cooperation with more inland river ports helps consolidate Shanghai's position as the nation's shipping center,” said Qian Hongwei, an analyst at CITIC China Securities.