Cosco makes bid for share of Kaohsiung container terminal

COSCO told Dow Jones that it was negotiating to buy a major stake of the new Kaohsiung container terminal developed by Yang Ming and the Taiwan government.

If the deal goes through, it would be the first time a Chinese state-owned corporation bought a share of a major Taiwan enterprise.


"The deal, if completed, would be done by our port investment arm Cosco Pacific Ltd and Yang Ming," said Cosco Group president Wei Jiafu on the sidelines of the Cosco Global Shipping (China) Summit in Guangzhou.


Yang Ming said in October it received separate offers from Cosco Pacific`s ultimate parent, China Ocean Shipping (Group) and Hong Kong-listed China Merchants for a 40 per cent stake in a NT$19 billion (US$6.3 million) terminal.


Separately, Capt Wei said the container shipping industry - a key indicator of world economic growth - has been recovering, but said it remained volatile if supply of new ships continued to outpace demand.


Capt Wei also said the Baltic Dry Index, an indicator of dry-bulk freight rates, is expected to reach 3,500 next year, driven by China`s robust domestic consumption and demand for iron ore. The index ended at 2,482 on Monday.