China Merchants Port Holdings Company Limited (CMPort) entered into an acquisition agreement with China Merchants Union (CMU) and Gold Newcastle, to take over 50 per cent stake in Port of Newcastle for AUD607.5 million (USD 479.4 million). The remaining 50 per cent interest in Port of Newcastle is held by TIF Investment Trust, an independent third party.
The acquisition of Port of Newcastle in Australia is the first step for CMPort to invest in Oceania which can complement current trading network covered under the Company’s port portfolio with further potential synergies.
The Port of Newcastle is the largest port on the east coast of Australia and the world’s leading coal export port. The Port of Newcastle consists of 4 port zones, including 21 Berths (9 exclusive coal berths) with a total design capacity of 211million tonnes.
“Given the unique position of the Port of Newcastle with precincts containing land resources, the acquisition will bring opportunities for the Company to further achieve its ‘Port and Park’ development under ‘Port-Park-City’ (‘PPC’) model, which aims to operate its core port businesses together with the park development and infrastructure support, thereby achieving a port-centred ecosystem with port operations as its core,” CMPort said.
Port of Newcastle is the only gateway port for Hunter Valley coalfields which produces high-quality thermal coal, and handles approximately 40 per cent of Australia’s export volume of coal. CMPort added that it believes, the acquisition, which represents a fair and reasonable price, will generate positive long-term financial return to the Company.
Sea News, February 7