Loss-making CSCL to auction off its 55pc stake in Jiangsu box terminal
CHINA Shipping Container Lines (CSCL) plans auction off its 55 per cent stake in the newly-built two million-TEU capacity terminal in Lianyungang, in Jiangsu province for no less than CNY756 million (US$124 million), the opening bid.
The Lianyungang New Oriental Container Terminal has been jointly invested and developed by China Shipping Terminal, a CSCL subsidiary, and the local port operator since 2006. The local port operator holds the remaining 45 per cent stake, reports Lloyd's Loading List.
The terminal is equipped with five berths and has begun trial operations.
"The purpose of the transaction is to increase asset utilisation and optimise the asset structure of China Shipping Terminal and to fulfill the overall needs of the company," CSCL said in a filing to the Shanghai Exchange.
The terminal will be sold through a public bidding process in the local asset exchange, with a floor price of CNY756 million. The report said that CSCL could make a profit of at least CNY206 million in the proposed sale, as it invested CNY550 million in the greenfield project, the filing said.
In the first half of the year CSCL posted a net loss of CNY1.26 billion, almost the same as its CNY1.28 billion deficit recorded in the same period last year.
In a related development, the company announced plans to dispose of two 27-year-old 1,000 TEU feeder ships.
CHINA Shipping Container Lines (CSCL) plans auction off its 55 per cent stake in the newly-built two million-TEU capacity terminal in Lianyungang, in Jiangsu province for no less than CNY756 million (US$124 million), the opening bid.
The Lianyungang New Oriental Container Terminal has been jointly invested and developed by China Shipping Terminal, a CSCL subsidiary, and the local port operator since 2006. The local port operator holds the remaining 45 per cent stake, reports Lloyd's Loading List.
The terminal is equipped with five berths and has begun trial operations.
"The purpose of the transaction is to increase asset utilisation and optimise the asset structure of China Shipping Terminal and to fulfill the overall needs of the company," CSCL said in a filing to the Shanghai Exchange.
The terminal will be sold through a public bidding process in the local asset exchange, with a floor price of CNY756 million. The report said that CSCL could make a profit of at least CNY206 million in the proposed sale, as it invested CNY550 million in the greenfield project, the filing said.
In the first half of the year CSCL posted a net loss of CNY1.26 billion, almost the same as its CNY1.28 billion deficit recorded in the same period last year.
In a related development, the company announced plans to dispose of two 27-year-old 1,000 TEU feeder ships.
