Cosco offers US authorities Long Beach terminal solution to solve OOCL takeover

Cosco offers US authorities Long Beach terminal solution to solve OOCL takeover

The Wall Street Journal is reporting China’s state-run shipping giant Cosco has offered a solution to American authorities to ease concerns about its takeover of Hong Kong containerline, OOCL.

The $6.3bn deal is meant to go through shortly but has been held up in the US where the authorities have voiced national security concerns about handing OOCL’s Long Beach terminal concession to Cosco, becoming the Chinese carrier’s third Californian terminal.

Cosco is understood to have offered to put this OOCL terminal into a third party US-run trust for a year while Cosco finds a buyer for it to get the takeover deal over the line. Anti-trust authorities from the rest of the world have given their blessing to the merger.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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