Shanghai: China Shipping Terminal Development (CSTD) is looking to offload its stake in the brand new 2m teu Lianyungang New Oriental Container Terminal (LNOCT). The facility has five berths and is already in trial operation. CSTD has a 55% stake and plans to sell this for a sum in excess of $124m.
Analsyts Drewry said the sale was down to two factors: the high price for terminals around the world, which will see CSTD net around $34m in profit from the sale, and secondly the urgent need by parent China Shipping for cash.
“China Shipping’s first half 2013 net loss was around $200m (similar to the same period last year) so the LNOCT stake sale will help fill this hole – although clearly more needs to be done,” Drewry noted. [07/10/13]