SINGAPORE : Port operator PSA International has sealed its
foothold in the world's busiest container port.
PSA says it has completed the purchase of the Hong Kong port assets
of NWS Holdings.
The landmark deal, announced earlier this month but subject to
certain approvals, cost PSA HK$3 billion Hong Kong dollars, or
S$630 million.
The investment will add Hong Kong's Container Terminal No. 3 and
Container Terminal No. 8 West to PSA's portfolio.
Both terminals are located at the territory's main Kwai Chung
Port.
This will give PSA an important southern gateway into the huge
China market.
Commenting on the deal, PSA Group CEO Eddie Teh said the firm was
optimistic of the long-term future of Hong Kong port and was
confident that it will be able to add value to the Hong Kong port
scene.
But getting into the Hong Kong market certainly was not easy for
PSA.
Last November, it tried to buy a stake in Asia Container Terminals
Holdings (ACT).
But that deal was blocked by existing shareholders which exercised
their pre-emptive rights - including NWS.
PSA also wanted to buy the global port operations of CSX Corp -
which owned stakes in Asia Container Terminals.
But that deal also came to nothing - when Dubai Ports came in at
the last minute to better its offer.
PSA, the second biggest port operator in the world, has long been
seeking a foothold in Hong Kong for a share of the busy China
trade.
It now has flagship operations in Singapore and Belgium - with a
network of 16 port projects in 11 countries in China, Europe,
India, Korea, South East Asia and Japan. - CNA