by Lloyd's List
24 Oct 2024 (Lloyd's List) - COSCO Shipping Ports has gained a foothold in Southeast Asia through the acquisition of stakes in two key terminal operators at Thailand’s Laem Chabang port, giving the Chinese giant coveted exposure to the region’s booming trade.
The Hong Kong-listed firm said it had signed conditional agreements with Hutchison Port Holdings and Sapphire Terminal (Thailand) to purchase 30% of Hutchison Laemchabang Terminal and 12.5% of Thai Laemchabang Terminal.
The estimated $110m deals follow rival China Merchants Port Holdings late last year securing Indonesian and Thai facilities, as Chinese port giants compete to tap surging demand.
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HLT and TLT are two of the largest terminal operators at Laem Chabang, located southeast of Bangkok and serving as Thailand’s largest deepwater port and main container shipping hub.
The acquisitions include TLT’s A2 berth, HLT’s A3, C1-C2 berths, and HLT’s D1-D3 berths, which remain under partial construction. When completed, HLT’s total annual handling capacity will be around 6.7m teu.
CSP will buy 25.56% and 4.44% of HLT from HPH and Sapphire via a wholly-owned subsidiary, which will also purchase a 12.5% interest in TLT from Sapphire.
The agreements are contingent on approvals such as confirmation from China’s state asset regulator, and clearance from competition authorities for the HPH acquisition.
Upon completion, the deals will give CSP a long-sought presence in Southeast Asia, where trade and logistics demand is growing rapidly amid global supply chain reconfiguration.
The deals may also pave the way for CSP to potentially participate in the $7bn phase three development of Laem Chabang, including four box berths, adding 7m teu of annual capacity.
According to Thailand’s government, one of the new berths, Berth F, is expected to come onstream in 2025, and the new expansion project will feature automated cargo handling to improve efficiency.
“With the active support of the Thailand government in the development of Laem Chabang Port, the group can benefit from a stable and favourable regulatory environment, which minimises operational risks,” CSP stated.
In August 2023, CSP managing director Zhu Tao told Lloyd’s List the company was targeting Vietnam and Thailand for potential port acquisitions, adding that joint ventures were more feasible than controlling stakes partly for regulatory reasons.
The progress follows China Merchants Port Holdings acquiring a 51% stake in Indonesia’s PT Pelabuhan Handal, which operates box terminals in Jakarta and Bangkok, late last year.
CMPH said at the time that the deal advanced its strategic Southeast Asia port network through a local partnership to penetrate the Indonesian market.
