China Shipping Terminal Development acquires 20% stake in Busan port container terminal

China Shipping Terminal Development acquires 20% stake in Busan port container terminal

China Shipping Terminal Development (CSTD) has signed an agreement with CJKEC, the controlling shareholder of KEC Busan Container Terminal (KBCT), to acquire a 20% equity share in KBCT.

KBCT currently has five container berths and is capable of handling 14,000teu containerships, and handled 2.2m teu in 2014. After the transaction, CSTD will become the second largest shareholder in the terminal.

CSTD said the investment is an important step for its global expansion strategy and will facilitate the container shipping business to be merged by China Shipping and Cosco.

According to a merger plan announced on December 11, Cosco Pacific will acquire full equity of CSTD from China Shipping Group and China Shipping Container Lines (CSCL) for RMB7.63bn ($1.17bn). In the meantime, it will sell its container leasing subsidiary Florens Container Holdings to CSCL for RMB7.78bn ($1.2bn).

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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