Cosco Pacific, the largest Mainland port operator, said it will further expand its overseas terminal networks and increase its controlling rights in terminals even after posting a 31.8% decline in net profit in the first half.
The company also announced it entered into an agreement to sell 49% of its wholly owned subsidiary, CP Logistics, to parent China Cosco Holdings for US$292.6 million in cash. China Cosco indirectly holds about 51.2% of Cosco Pacific. The deal would need independent shareholders’ approval.
CP Logistics conducts cargo terminal services, which is different from Cosco Pacific’s major business as a global port operator.
The sale will allow Cosco Pacific to concentrate on its terminal businesses.
The widespread geography of the ports invested in by Cosco Pacific helped to even out the impact of slowing international trade with the relatively resilient domestic trade in the first half.
The port portfolio of Cosco Pacific consists of 17 Mainland terminals and three international terminals.
Throughput of the company dropped 8.5% year on year to 20.2 million TEUs in the first half, which ain’t bad compared with the double-digit drop countrywide.
CargoNews Asia reported the relatively strong throughput at the ports in the north helps alleviate the drop in the Yangtze and Pearl River deltas.