Qingdao Port Buys 33.3 Pct Stake in COSCO Shipping Ports (Abu Dhabi)
Chinese container terminal operator COSCO Shipping Ports Limited has entered into a deal to sell 33.3 percent of equity in its subsidiary COSCO Shipping Ports (Abu Dhabi) Limited to Qingdao Port International Development (Hong Kong) for USD 59.2 million.
Abu Dhabi Terminal in Khalifa Port was the first terminal in which COSCO Shipping Ports held a controlling stake in the Middle East.
“Disposal is expected to further improve the operational efficiency of Abu Dhabi Terminal, increase the terminal’s competitiveness in the Middle East and provide highly-efficient and better ports services to shipping companies. Furthermore, the company believes that the disposal would be beneficial to the two parties in maximizing their respective advantages, expanding terminal-extended business and deepening strategic cooperation in terminal business in the long run,” COSCO said in a filing to Hong Kong exchange.
Upon completion of the sale, Abu Dhabi Terminal will be indirectly held as to approximately 60% by COSCO Shipping Ports and 30% by QPI Development respectively through CSP (Abu Dhabi), with Abu Dhabi Ports holding the remaining 10 percent in the company.
Abu Dhabi Ports and COSCO Shipping Ports Limited opened CSP Abu Dhabi Container Terminal on December 20, 2018.
The terminal is the result of the 35-year concession agreement between Abu Dhabi Ports and CSP.
The deepwater, semi-automated container terminal has a design capacity of 2.5 million TEU and began with a handling capacity of 1.5 million TEU. The water depth of the terminal is 16.5 metres, allowing it to accommodate mega-vessels typically carrying in excess of 20,000 TEU.