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COSCO in talks on Jiangsu port stake

(Reuters)
Updated: 2007-05-22 11:38

Shipping conglomerate China COSCO Group is in talks to buy a controlling stake in an expansion of a fast-growing port in Jiangsu province, the South China Morning Post reported on Tuesday.

The state-owned firm is in exclusive talks on taking a 55 percent stake in the 6.6 billion yuan ($861.2 million) expansion project, the paper quoted Huang Cheng, deputy party secretary of the terminal's manager, Lianyungang Port Group, as saying.

COSCO signed a memorandum of understanding with Lianyungang and the final agreement would be signed by the end of this year, the official as saying. The 11 berths are due for completion by 2012.

Lianyungang serves 20 routes, with destinations including the United States, Canada, the Mediterranean Sea, Europe and Southeast Asia, the paper reported.

COSCO, the parent of listed China COSCO Holdings Ltd , has been developing port facilities aggressively in China. It has also been gradually injecting its shipping assets in the Hong Kong listed vehicle.