Cosco Pacific, AP Moller-Maersk Group and two other investors will spend a total of US$1 billion on a port expansion project in Qingdao in a bid to cope with strong market demand.
The Qingdao New Qianwan Container Terminal joint venture was set up yesterday to build 10 berths in the extension of Qianwan Container Terminal, the fourth-largest container port in the mainland, according to the South China Morning Post.
Shareholders in the existing port, including Cosco Pacific, Qingdao Port Group and Maersk will own 80 percent of the new company while Pan Asia International Shipping will have the remaining 20 percent, Cosco Pacific said in a press statement.
Cosco Pacific, the port division of China Cosco Holdings, has agreed to pay US$160 million for a 16 percent stake in the new port project, the newspaper reported.
The 10 new berths will be constructed in the south bay of Qianwan Container Terminal with a total quay length of 3,400 metres and depth alongside of 17 metres. The designed capacity of the facility is six million TEU per year.
Some new berths are already under construction and four are expected to commence operation by the end of next year. Together with the 11 old berths, the port will be able to handle 12.5 million teu per year upon completion.
Qianwan Container Terminal, which started operations in January 2004, has already exceeded its annual designed handling capacity of 6.5 million TEU. Some 6.8 million TEU of cargo was moved by the cranes in the first 10 months of this year in Qianwan Container Terminal, a 23 percent increase year on year.
Throughput in the container terminals invested in by Cosco Pacific jumped 14 percent to 3.5 million TEU last month. The terminals handled 32.3 million boxes in the first 10 months, up by 20 percent.
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