China’s Qinhuangdao Port has announced that its subsidiary Cangzhou Bohai has entered into an equity transfer agreement with Bohai Jinji, under which Cangzhou Bohai has agreed to transfer 90% equity interest in Cangzhou Bohai Jinji Container Terminal in Hebei to the latter for RMB559.57m ($81.36m).
Bohai Jinji is a joint venture between Qinhuangdao Port Group and Tianjin Port Group. Qinhuangdao Port said the transfer will accelerate the integration of the container business between the group and Tianjin Port Group, optimising location distribution and enhancing the efficient use of the two ports without constructing new berths for containers.
Qinhuangdao Port also expects the deal to help the group build a northern shipping centre together with Tianjin Port.
Under the central government’s Beijing-Tianjin-Hebei integration project, which aims to improve the region’s overall competitiveness, Tianjin Port has started various collaborations with neighboring ports in Hebei. In 2016, it also signed a framework agreement with Hebei Port Group to jointly develop and operate terminals.
China announced in April that it will establish a special economic zone in Hebei called Xiongan New Area, as part of advancing the coordinated development of the Beijing-Tianjin-Hebei region. The move is expected to help phase out some non-capital functions from Beijing, explore a new model of optimised development in densely populated areas, and restructure the urban layout in the region.