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SHIPPING & MARINE | Tony Chua, Hong Kong

Chu Kong Shipping strikes deal with China Merchant Holdings

CKSD to sell 20% stake in Chu Kong River Trade Terminal Company Limited to CMHI.

Dr. Hua Honglin, Chairman of Chu Kong Shipping Development Co., Ltd (CKSD), a leading comprehensive transportation services supplier in the Hong Kong-Zhuhai-Macau Region on Wednesday announced to enter into a strategic cooperation framework agreement with Mr. Hu Jian Hua, Managing Director of China Merchants Holdings (International) Company Limited (CMHI) for the comprehensive strategic cooperation.

According to the agreement, CKSD is to sell 20% of its equity interest in Chu Kong River Trade Terminal Company Limited to CMHI. The selling price will be determined with reference to the appraised value recognised by CKSD and CMHI and the procedures on assessment of consideration and share transfer are to be completed within three months. Besides, CMHI undertakes to be the strategic shareholder of the Company as and when appropriate, according to a CKSD report.

CKSD and CMHI are expected to benefit from strong complementary advantages in business segments, strategic development and resources through the collaboration. CMHI is to drive the major shipping companies in the Shenzhen Western Port Area to use CKSD terminals as their primary port, container return point and stacking area. CMHI is to also provide clients with reasonable and favorable logistics solutions through collaborative marketing strategies and transportation network connections, assisting CKSD to enhance the integrated competitiveness of its terminals.

For its part, CKSD would promote the Western Port Area to be the main seaport in Southern China, and fully utilise terminals, cargo canvassing and transportation network in the Pearl River Delta region to expand convergence of river-sea transportation and the barging businesses to generate new container volume for the Western Port Area.

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