Cosco Pacific, the largest mainland port operator, said it will further expand its overseas terminal networks and increase its controlling rights in terminals even after posting a 31.8 percent decline in net profit in the first half.
The company also announced it entered into an agreement to sell 49 percent of its wholly owned subsidiary, CP Logistics, to parent China Cosco Holdings for US$292.6 million in cash, the South China Morning Post reported.
China Cosco indirectly holds about 51.2 percent of Cosco Pacific. The deal would need independent shareholders' approval.
CP Logistics conducts cargo terminal services, which is different from Cosco Pacific's major business as a global port operator.
The sale will allow Cosco Pacific to concentrate on its terminal businesses.
Net profit at the port operator fell $104.51 million from $153.15 million a year earlier. Revenue dropped 1.87 percent to $159.02 million.
Cosco Pacific said the outlook for the second half was still challenging.
"Even though the decline in trading activities turned moderate in the second quarter of 2009, it is still difficult to predict when the economy will recover," said Xu Minjie, a vice-chairman and managing director.
The widespread geography of the ports invested in by Cosco Pacific helped to even out the impact of slowing international trade with the relatively resilient domestic trade in the first half.
The port portfolio of Cosco Pacific consists of 17 mainland terminals and three international terminals.
Throughput of the company dropped 8.5 percent year on year to 20.2 million TEUs in the first half, compared with the double-digit drop countrywide.
The relatively strong throughput at the ports in the north helps alleviate the drop in the Yangtze and Pearl river deltas.
The increase in the ratio of empty containers to the total lifting has dented the profitability of the port division.
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