Zhonggu Logistics buys into Tianjin port unit
Zhonggu Logistics, China’s largest domestic liner operator, has acquired a 35% in one of Tianjin Port’s subsidiary logistics firms, paying US$108.84 million for the stake on 7 January.
Zhonggu said in a filing to the Shanghai Stock Exchange that the acquisition of a stake in Tianjin Port No. 4 Port, will accelerate the development of the company’s container business, deepen its cooperation with Tianjin Port, which is one of the busiest container ports in Asia and the world, having handled more than 18 million TEU in 2020.
On its part, Tianjin Port stated that selling part of its holdings in Tianjin Port No. 4 Port will see capital injected into the company.
In the first nine months of 2021, Zhonggu’s net profit soared 214% year-on-year to US$239.72 million.
Zhonggu noted that having a foothold in Tianjin port, which is in northern China, will facilitate direct container shipping between northern and southern China, thus enhancing logistical links between Beijing, Tianjin, Hebei province and the Pearl River Delta.
Secondly, through the transaction, Zhonggu can improve its service network around Bohai Rim, which is centered on Tianjin port. The company said that its joint venture with Tianjin Port can develop the hinterland in Bohai Rim and the sea-to-land intermodal transport network.
Coincidentally, on 25 December 2021, China’s state council issued a five-year plan to develop multimodal transport, focusing on waterways and railways.