Cosco Shipping Ports announced that the restructuring of Dalian Port is practically completed with the merger of all related parties previously operating 14 container berths now coming under one entity, Dalian Container Terminal (DCT).
DCT originally operated seven berths at the Port of Dalian, with Dalian Port Container Terminal (DPCT) operating five and Dalian International Container Terminal operating the remaining two.
All the three entities have various international investors, including Singapore Dalian Port Investment and PSA China, which held 49% of DCT and 25% of DPCT respectively prior to the merger, Japanese logistics giant Nippon Yusen also held a 20% stake in DICT.
Cosco Shipping Ports said in a stock market announcement that these three entities have been consolidated under DCT, with the resulting stakes of previous entities being diluted accordingly based on the respective valuations.
The corporate action essentially sees Dalian Port Container Development (DPCD) strengthening its majority stake in the merged entity with a 48.15% stake and much reduced stakes for other players.
Singapore Dalian Port Investment, the joint venture between PSA and the then Port of Dalian Authority to set up DCT and its first foreign foray back in 1996, will see its overall stake fall to 20.75%, while PSA China will see its 25% stake in DPCT previously, reduced to 5.25% of the bigger entity.
Providing its rationale for the mover, Cosco Shipping Ports said: "The company believes that the merger will allow each party to exert its strength, further optimise the allocation of resources, and facilitate integrated management of the relevant terminals, thereby lowering operational costs, increasing overall competitiveness of DCT and enhancing its efficiency."