COSCO SHIPPING Ports has subscribed for 70,943,455 shares of Beibu Gulf Port for a total consideration of approximately RMB 470 million (US$68.6 million), through China Shipping Terminal Development, a subsidiary.
The shares accounts for approximately 4.34% of Beibu Gulf Port’s total issued shares.
By subscribing the shares, COSCO aims to further strengthen the cooperation with Beibu Gulf Port, and lay a foundation for the Company to participate in the integration of Guangxi ports.
At present, COSCO teams up with Beibu Gulf Port in operating Qinzhou International Container Terminal.
Beibu Gulf being the gateway of the New International Land-Sea Trade Corridor (“ILSTC”, formerly known as China-Singapore Southern Transport Corridor), is strategically significance in development.
The ILSTC connects the Silk Road Economic Belt in the north, and 21st-Century Maritime Silk Road in the south via Guangxi and ASEAN countries such as Singapore.
It forms a complete route of the Belt and Road Initiative through western China, and plays a key role in the construction of the Belt and Road Initiative.
It not only promotes the development of western China, but also strengthens the cooperation among China and ASEAN countries.
Beibu Gulf Port is located near South China Economic Circle, Southwest China Economic Zone and ASEAN Economic Circle. Thus, it is the main gateway port in Southwestern China, and is one of the 20 major coastal hub ports in China.
Trade routes of Beibu Gulf Port cover major ports in ASEAN countries, and connect more than 200 ports in over 100 countries and regions.
It has built sea transportation network from inland hinterland to Southeast Asia, Indian Ocean, Pacific Ocean, Mediterranean Sea etc.
Cutting down time and cost
Total throughput of Beibu Gulf Port achieved for the nine months of 2018 amounted to approximately 13.485 million tons, an increase of 13.68% year-on-year.
The container throughput increased significantly by 30.17% year-on-year to approximately 2,186,300 TEUs.
The three major port areas of Beibu Gulf Port are stepping up the development of the Rail-sea intermodal transportation to form an important hub for the ILSTC.
With the rail-sea routes between western China and Southeast Asia built via Beibu Gulf, the railsea routes have been expanded to link inland cities of China.
Goods can then be transported from western cities such as Chongqing to Beibu Gulf Port, and from the port to ASEAN countries by container ships.
The whole route only takes seven to 10 days, which substantially reduced the transportation time and costs.