Port of Shanghai acquires 5pc of Ningbo-Zhoushan for US$1.62 billion
THE Port of Ningbo plans to raise CNY11
THE Port of Ningbo plans to raise CNY11.2 billion (US$1.62 billion) issuing of new shares to its controlling shareholder Ningbo Zhoushan Port Group and as well as to Shanghai International Port Group (SIPG).
SIPG will spend CNY3.7 billion for five per cent of the port, in line with the central government's call for greater cooperation among Yangtze River Delta ports, reports Singapore's Splash 247.
The proceeds from the fund raising will be used for terminal construction, berth conversion, asset acquisition, debt repayment and general working capital.
According to the port authority, this will bring in SIPG as a strategic investor in an response to the central government's call to enhance cooperation among ports in the Yangtze River Delta region.
Ningbo port will use CNY4.6 billion of the proceeds to support the construction of container terminal at Meishan Port area and another CNY1.04 billion for the development of iron ore terminal at the Chuanshan port area.
Ningbo Zhoushan Port has been the number one port in the world in terms of cargo throughput in the past decade, handling 1.12 billion tons of cargo in the year of 2019. The port also completed container throughput of 27.53 TEU during the same period, ranking it third in the world.