LONDON: Cosco Pacific is investing in Turkish ports after forming a joint venture with China Merchants Holdings International (CMHI) and CIC Capital for the acquisition of equity interests in Fina Liman and Kumport.
The Tripartite Consortium will have an equity interest of 65% in Kumport upon the completion of the acquisition, at a consideration of US$940m, with the remaining 35% equity interests held by State General Reserve Fund in Oman. CMHI, COSCO Pacific and CIC Capital will have equity stakes of 40%, 40% and 20% in the Tripartite Consortium, respectively.
“With the promising economic prospects of Turkey, the hinterland of Kumport, its position as an important node situated along both the ‘Silk Road Economic Belt’ and the ‘21st Century Maritime Silk Road’, and with the Chinese government’s pursuance of the ‘One Belt, One Road’ initiative, strong growth potential for demand of container ports and logistics services is expected in the future,” said Li Jianhong, chairman of board of directors, CMHI.
The modern container terminal, currently owned and operated by Fina Liman, sits in the Ambarli Port Complex on the northwest coast of the Marmara Sea – a gateway to the Black Sea and a strategic interchange between Europe and Asia.
“Kumport, with its competitive market position, will generate stable financial returns for the company, while the company’s experience and expertise in the terminal business would complement the services currently being offered by the other shipping companies operating at Kumport, thereby expanding the client base and increasing the market share of the Kumport,” Mr Jianhong added.
Cosco Pacific says the business synergy between Kumport Terminal and the company’s existing investment in Piraeus Container Terminal SA in Greece will also provide significant development opportunities.
Kumport Terminal has six berths, a shoreline of 2,180m and maximum water depth of 16.5m, capable of accommodating the world’s largest container vessels. In 2014, the terminal handled a total container throughput of 1.414 million teu, accounting for 17% of the country’s total.
Shipping activity at Port Qasim on February 11
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