THE Port of Ningbo plans to raise CNY11.2 billion (US$1.62 billion) issuing of new shares
to its controlling shareholder Ningbo Zhoushan Port Group and as well as
to Shanghai International Port Group (SIPG).
SIPG will spend CNY3.7 billion for five
per cent of the port, in line with the central government's call for
greater cooperation among Yangtze River Delta ports, reports Singapore's
The proceeds from the fund raising will be used for terminal
construction, berth conversion, asset acquisition, debt repayment and
general working capital.
According to the port authority, this will bring in SIPG as a strategic
investor in an response to the central government's call to enhance
cooperation among ports in the Yangtze River Delta region.
Ningbo port will use CNY4.6 billion of the proceeds to support the
construction of container terminal at Meishan Port area and another
CNY1.04 billion for the development of iron ore terminal at the
Chuanshan port area.
Ningbo Zhoushan Port has been the number one port in the world in terms
of cargo throughput in the past decade, handling 1.12 billion tons of
cargo in the year of 2019. The port also completed container throughput
of 27.53 TEU during the same period, ranking it third in the world.