Cosco Pacific eyes ports abroad
The firm is focusing on its core businesses after selling an asset for US$1.2 billion
Cosco Pacific says it is in advanced talks to buy ports on the mainland and in Southeast Asia and Greece because of their attractive prices.
The port operator, which is set to pocket US$1.2 billion from selling its container manufacturing unit to its parent Cosco Group, wants to further focus on its core business - port and container leasing businesses - when the global economy recovers.
Opportunities in Southeast Asia as ties with China improve would bring in more trade. Some factories have left China to set up in the region to take advantage of lower labour and land costs as well as more beneficial tax treatments from Europe and the United States.
"We have been pressing hard to invest in ports in Indonesia, Myanmar and Malaysia," said Qiu Jinguang, a deputy managing director at Cosco Pacific, after the company's annual shareholders' meeting yesterday.
Cosco Pacific is jostling for overseas port projects with its counterpart, China Merchants Holdings (International), which recently outperformed Cosco Pacific by securing port projects in Tanzania and acquiring a stake in French firm Terminal Link, which operates 15 mainland and overseas terminals.
Wang Xingru, a vice-chairman of Cosco Pacific, said the backing from China Cosco Group, which operates one of the largest container shipping lines, would help them to secure port deals.
