Jiangsu to merge port assets

Jiangsu to merge port assets

Two listed port companies in China’s Jiangsu province, Nanjing Port and Lianyungang Port, have announced that they have received a notice from their controlling shareholders regarding the establishment of Jiangsu Port Group.

The new port group will merge all the major port companies in the province including Nanjing Port, Lianyungang Port, Dafeng Port, Nantong Port, Taizhou Port, Suzhou Port, Wuxi Port, Taicang Port and Jiangyin Port, and will have a total asset scale of over RMB100bn ($14.5bn).

According to the notice, the move is to optimize the port assets and enhance operational efficiency in province amid the downturn in the shipping industry.

The merger is part of a series of port assets mergers led by the central government. Zhejiang province completed the merger of Ningbo Port and Zhoushan Port in 2016. Tianjin Port is currently working on a potential asset integration with Hebei Port Group, and Liaoning province is also making a plan to merge the major ports in the region.

The ports in Jiangsu completed a cargo throughput of 2.41bn tons in 2016, up 3.3% year-on-year.

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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