CIG Yangtze Ports has entered into an agreement with state-run port operators Wuhan New Port Construction Investment and Development Group and Wuhan Port Development Group for the establishment of a joint venture company to operate Wuhan Port.
CIG Yangtze Ports will invest RMB4.9m to take 49% equity in the jv, while Wuhan Port Development and Wuhan New Port Construction will take 35% and 16% respectively.
Phase one of Wuhan Yangluo Port is operated by CIG Yangtze Ports and the phase two of the port is operated by the other two jv partners.
“During the past few years, the group’s revenue and profits had been affected by the continuing price cutting by the neighboring competing ports. After the centralization of operation and management, the jv company will be able to determine independently the market price of the services provided in the Yangluo Port area, that in turn will expect to increase the overall revenue of Yangluo Port area and the group’s revenue and profits,” CIG Yangtze Ports said in a release.
CIG Yangtze Ports is mainly engaged in the investment, development, operation and management of ports along the Yangtze River, including Wuhan’s Yangluo Port, Hanan Port, Shayang Port and Shipai Port.