20 June 2023 (Lloyd's List) - COSCO Shipping Ports said it has signed a revised agreement to acquire a minority stake in a container terminal at Germany’s Hamburg port, ending years-long of debate over national security risks of the deal.
The agreement with Hamburger Hafen und Logistik allows the Hong Kong-listed subsidiary of state conglomerate China Cosco Shipping Corp to buy a 24.99% stake in HHLA’s Container Terminal Tollerort for €46.4m ($50.7m), according to a stock exchange filing.
The purchase was reduced from a 35% share equity initially proposed by CSP in 2021, having encountered strong pushback in Germany because of concerns over access by foreign companies to critical infrastructure and the associated risks.
CSP said the revision also prohibits it from having veto rights with regard to the terminal’s strategic business decisions, including budget and business plans, and its personnel decisions.
With the new agreement, HHLA said the CTT will become a preferred transhipment point for its long-term customer Cosco Shipping.
That said, “Cosco has no exclusivity rights there — the terminal remains open for container volumes from all customers,” the German company added.
The protracted negotiations over the deal reflected Europe’s growing resistance to Chinese investment.
The European Maritime Security Strategy, updated by the European Commission in March, points out the risks associated with foreign direct investment in critical infrastructure, saying that these risks will be addressed through various instruments, including the screening of foreign direct investment in line with relevant regulations.
