SHANGHAI: January 26, 2017. COSCO Shipping Ports and CMA Terminals Holding have signed an MoU in a bid to further strengthen their joint global port investments and operations.
Both organizations have agreed to cooperate in ports worldwide, particularly those included in the Ocean Alliance. The two sides said they would also support each other's current investments in business and services.
Earlier this month COSCO Shipping Ports said it would acquire a 16.82 percent stake in Qingdao Port International (QPI), operator of China's sixth busiest port.
The two companies also announced a Strategic Cooperation Agreement to develop Qingdao into an international shipping hub in Northeast Asia; co-invest in overseas terminal projects including the Khalifa Port Container Terminal II project in Abu Dhabi; and establish companies to manage and operate domestic and overseas terminal projects.
Parent company China COSCO Holdings said it sold for scrap eight container vessels with a total capacity of 410,000 DWT during the fourth quarter of 2016 for US$21 million. The company said it incurred a total net loss of US$93 million on the transaction and expects to post a net loss of US$1.44 billion for 2016 as a result.
COSCO Container Lines - which reported a fourth quarter pre-tax profit of US$102 million – plus CMA CGM, Evergreen Line and Orient Overseas Container Line expect to launch their Ocean Alliance in April with 40 services linking 100 ports on East-West trades and a combined capacity of 3.5 million TEUs.
CMA CGM said would deploy 119 vessels with a 35 percent capacity share of the 'Alliance.