COSCO eye­ingHan­jin ter­mi­nal as­sets

China Daily (USA) - - BUSINESS - By BLOOMBERG

China COSCO Ship­ping Corp, owner of Asia’s big­gest con­tainer-ship­ping com­pany, said it could con­sider buy­ing some con­tainer-ter­mi­nal as­sets of the trou­bled Han­jin Ship­ping Co af­ter agree­ing to spend $738 mil­lion on a new port in Abu Dhabi.

“We would like to study it if it’s put on the ta­ble and if there’s a will­ing­ness to sell on Han­jin’s part,” Chair­man Xu Lirong said in Shang­hai on Wed­nes­day.Sept 28. “So “So­far, far,it’s notit’s no­ton the on the agenda.” agenda.”

Buy­ing Han­jin’s ter­mi­nal as­sets in the Port of Long Beach California will help COSCOwiden its foot­print af­ter the Chi­nese gov­ern­ment merged its key ship­ping com­pa­nies last year to help them ex­pand in­ter­na­tion­ally.

The Seoul court over­see­ing the bankruptcy pro­tec­tion of Han­jin said that it was con­sid­er­ing a sale of the en­tire com­pany. Xu said COSCO had no plans to buy the South Korean liner’s ves­sels.

Be­sides the ter­mi­nal in California, Han­jin also has two other fa­cil­i­ties in South Korea.

China last year merged China Ocean Ship­ping Group and China Ship­ping Group to form China COSCO Ship­ping as part of the gov­ern­ment’s ef­forts to shrink in­dus­tries plagued by over­ca­pac­ity while cre­at­ing glob­ally com­pet­i­tive busi­nesses.

The com­bined com­pany fo­cuses on mov­ing con­tainer boxes, com­modi­ties and oil and gas through its units.

One such unit, COSCOShip­ping Ports, said onWed­nes­day it en­tered into a con­ces­sion agree­ment for the con­struc­tion, man­age­ment and op­er­a­tion of the Khal­ifa Port Con­tainer Ter­mi­nal 2 in Abu Dhabi. The deal is for 35 years, it said in a fil­ing to the Hong Kong Stock Ex­change, with an op­tion to ex­tend it by a fur­ther five years.

ED JONES / AFP

A se­cu­rity guard walks by con­tain­ers at the Han­jin In­cheon Con­tainer Ter­mi­nal in Seoul. China COSCO Ship­ping Corp said it may con­sider buy­ing some con­tainer-ter­mi­nal as­sets of the trou­bled Han­jin Ship­ping Co.

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