PSA International Ventures into South-Western China
PSA International (PSA) established itself as the first and only Global Terminal Operator in the Guangxi-Beibu Gulf region by signing a Joint Venture Agreement with Beibu Gulf Port Group (BPG) and Pacific International Lines (PIL) to operate a new container terminal in Qinzhou City (Guangxi Province, China) - BEIBU GULF-PSA International Container Terminal Co., Ltd (BPCT).
The joint venture terminal is PSA’s first foray in the South-Western China region – one of the fastest growing economic regions in China. Accessible to Southeast Asia by land and sea, the region has been earmarked by the Chinese government as a key area for coastal development and collaboration with ASEAN countries. The terminal will support the container trade growth in the region and serve the vast hinterlands of Guangxi, Sichuan, Chongqing and Hunan. It will also connect the region to key shipping routes linking China to ASEAN countries, East Africa & the Mediterranean.
Under the action plan for the “One Belt, One Road” development, which the Chinese Government issued on 28 March 2015, Guangxi is being positioned as an international corridor linking to the ASEAN region, and a strategic pillar to support the opening-up and development of the southwest and mid-south regions of China. It also forms an important gateway connecting the Silk Road Economic Belt and the 21st-Century Maritime Silk Road.
This investment also marks the first strategic partnership of PSA with BPG and PIL in China.
Commenting on the collaboration, Mr Tan Chong Meng, Group CEO of PSA, said, “Guangxi-Beibu Gulf’s strategic location, established transport infrastructure and extensive hinterland offer tremendous potential for our terminal to support the remarkable growth in China’s South-Western region. I am confident that with the complementary strengths of the 3 shareholders (BPG, PIL and PSA), and the unwavering support from the Guangxi Government, we will be able to transform our
joint venture terminal into a port of choice for the shipping lines.”
Beibu Gulf Port Group (BPG) Chairman Mr Zhou Xiao Xi expressed his confidence in the partnership. He said, “PSA is one of the world’s largest port groups, known for its management expertise, operational efficiency and proven track records. PIL is one of the largest ship-owners in Southeast Asia, with diversified operations in logistics related activities such as supply chain management, consolidation/distribution facilities, multi-modal services, and container depot/terminal operations. Tapping on the mutual expertise of all parties, the collaboration between PSA, BPG and PIL will help to spur economic growth in the region.”
Mr S.S Teo, Managing Director for Pacific International Lines, emphasized the importance of Guangxi in relation to China’s South-Western hinterland. He said, “We recognize the tremendous potential of the BPCT as a major international container hub port to support the further development of industries and hinterland investments in South-Western China. PIL is committed to 2 of 2 work with BPG and PSA to create a holistic logistics chain in this region, and make this cooperation a success.”
The joint venture will operate and manage a total quay length of 1,533m, a designed capacity of 3 million TEUs per annum, and be developed into a world-class facility to service the mega container vessels plying the world’s maritime trade routes today. It will also be equipped with Super-Post Panamax quay cranes (of 23-row outreach) and provide a water-depth of 15.1 metres.
Commencement of operations is expected in 4Q 2015.