COSCO Shipping Ports has entered into an agreement with Dalian Container Terminal to merge the three terminal operators at the Port of Dalian into one business entity.
After completion of the merger, Dalian Container Terminal Co, (DCT), as the surviving entity, will assume all assets, businesses, credits and debts of Dalian Port Container Terminal Co (DPCT) and Dalian International Container Terminal Co, (DICT). DPCT and DICT will be deregistered as legal entities and the current shareholders of DPCT and DICT will hold equity interests in DCT as the surviving entity, said COSCO Ports.
DCT currently operates seven berths at the Port of Dalian, while DPCT operates five berths and DICT operates two.
According to COSCO Ports, Dalian Port Container Development Co (DPCD) will own a 48 per cent share in the terminal business. The remaining shareholders include Singapore Dalian Port, China Shipping Terminal Development Co (CSTD), Nippon Yusen, PSA China, COSCO Ports Dalian and China Shipping Ports Development Co (CSPD), will own the remaining 20 per cent, 10 per cent, 6.8 percent, 5 per cent, 4 per cent and 3.6 per cent, respectively.
"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," COSCO Ports said in announcing the agreement.
The completion of the merger is subject to approval by government authorities, including the Anti-monopoly Bureau of The Ministry of Commerce of the People's Republic of China.