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COSCO SHIPPING Acquired 60% Stake in Peru’s Chancay Terminal

Date:2019-01-24 Read times: font size:[ L M S ]

On January 13, 2019, COSCO SHIPPING Ports Limited (COSCO SHIPPING Ports), a subsidiary of COSCO SHIPPING, held an agreement signing ceremony with Volcan Compañía Minera S.A.A. (Volcan) on the sidelines of the World Economic Forum (WEF) Annual Meeting 2019 in Davos, Switzerland. According to the agreement, COSCO SHIPPING Ports will acquire 60% stake in Terminales Portuarios Chancay S.A. (Chancay Terminal) from Volcan for a total consideration of US$225 million, with an initial payment of US$56 million. After the acquisition, Chancay Terminal will become the first terminal project controlled by COSCO SHIPPING in South America, as well as the Corporation’s second greenfield port project invested overseas.

The ceremony was witnessed by Her Excellency Mercedes Aráoz, Vice President of Peru, His Excellency Xiao Yaqing, Chairman of State-owned Asset Supervision and Administration Commission of the State Council, PRC (SASAC), His Excellency Dai Dongchang, Vice Minister of Transport of the PRC, His Excellency Luis Chávez Basagoitia, Ambassador of Peru to Switzerland, Capt. Xu Lirong, Chairman of COSCO SHIPPING and Mr. Huang Xiaowen, Executive Vice President of COSCO SHIPPING. Mr. Zhang Wei, Vice Chairman and Managing Director of COSCO SHIPPING Ports and Mr. José Picasso, Chairman of Volcan signed the agreement on behalf of the two parties.

Located at the Chancay Harbour in central Peru and about 58 km from the country’s capital city Lima, Chancay Terminal boasts an exceptional geographic location and is connected with the economic center of Peru by convenient traffic. It is a natural deep-water harbour with a maximum of 16 meters water-depth and is capable of satisfying the needs of mega vessels. The construction of Chancay Terminal includes multi-purpose terminals, container terminals and related infrastructure facilities. Phase one of the terminal will have four berths, of which two are multi-purpose berths, and two are container berths with a total annual designed capacity of one million TEU.

Her Excellency Mercedes Aráoz said, the co-investment in Port of Chancay by COSCO SHIPPING Ports and Volcan, a fruit of long-term friendly cooperation between China and Peru, will greatly facilitate the port and infrastructure construction in Peru, boost trade and deepen the cultural exchanges and friendship between the two countries. As a cooperation project between two highly influential companies in both countries, this project will energize Peru’s economy and bring it business opportunities, while promoting investment and cooperation by other Chinese enterprises in the country.

Noting that China and Peru are highly complementary economies, His Excellency Xiao Yaqing said the two companies, with aligned goals and demands, are embracing unprecedented historic opportunities. SASAC has been supporting Chinese companies in expanding mutually beneficial cooperation with their Peruvian counterparts, guided by the concept of seeking shared benefits through consultation and collaboration. A number of excellent Chinese companies, represented by COSCO SHIPPPING, are entering, settling down and contributing to Peru, and promoting win-win cooperation with practical measures and a responsible attitude. Planned to be a modern port, the Chancay project will inject new vitality into the healthy and sustainable development of Peru’s economy. He also expressed the hope that taking opportunity of this project, the two companies will accumulate experience, open channels and innovate models for cooperation in broader areas, so as to make new contributions to deepening the comprehensive strategic partnership and achieve common prosperity of the two countries.

According to Mr. José Picasso, with the rapid foreign trade growth in recent years, Peru’s existing port infrastructure can hardly meet the growing demand for logistics service. Since 2016, Volcan has started the project investment evaluation process to find an ideal partner in developing Port of Chancay. As the world’s largest shipping company and terminal operator, COSCO SHIPPPING operates 52 ports and terminals worldwide, with strong support from its shipping business. Citing the signing ceremony as an important milestone in cooperation between the two sides, the chairman was convinced that the two companies will make full use of their advantages to build Chancay into a key hub in South America, the most important logistics center on the Pacific coast, and a major platform that serves bilateral trade and improves the well-being of the two peoples.

In his speech, Capt. Xu Lirong said that as the world’s largest shipping company, COSCO SHIPPING has been actively investing in ports and terminals while developing its fleets. This business model, which covers the entire logistics industry chain, not only embodies the connotations of coordinated development, but also injects vitality into target countries and regions. Cooperating with Volcan on the development of Chancay Terminal will further improve the global terminal network of COSCO SHIPPING. After the acquisition, COSCO SHIPPING Ports and Volcan will fully utilize their resources and capabilities to jointly build Chancay into an important gateway port in Peru, which will facilitate trade between China and Peru and between China and Latin America while helping with local economic development.

Mr. Huang Xiaowen, Executive Vice President of COSCO SHIPPING, presided over the signing ceremony, which was attended by Mr. Luis Tsuboyama, Director of International Trade Negotations, Ministry of Foreign Affairs of Peru, Mr. José Ignacio, Vice Chairman of Volcan, Mr. Peng Huagang, Secretary General of SASAC, heads of departments and bureaus under SASAC, the Ministry of Transport and relevant centrally-administered SOEs, as well as executives from COSCO SHIPPING Ports, COSCO SHIPPING Europe and COSCO SHIPPING’s Executive Division and Public Relations Division.

Before the signing ceremony, Capt. Xu Lirong was invited to talk with Her Excellency Mercedes Aráoz. The two sides exchanged views on expanding cooperation in port, logistics, economic and trade fields.

His Excellency Luis Chávez Basagoitia, Ambassador of Peru to Switzerland, Mr. Luis Tsuboyama, Director of International Trade Negotations, Ministry of Foreign Affairs of Peru, Mr. José Picasso, Chairman of Volcan, Mr. José Ignacio, Vice Chairman of Volcan, as well as executives from COSCO SHIPPING Ports, COSCO SHIPPING Europe and COSCO SHIPPING’s Executive Division also attended the talks.

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