PSA International (PSA) has invested in China United International Rail Containers Co., Limited (CUIRC), a Sino-Foreign joint venture with a mandate from the government of the People’s Republic of China to develop and operate 18 railway container terminals within the country.
The investment makes PSA the only global terminal operator to currently have a shareholding in CUIRC, and was carried out through the acquisition of Hong Kong-based Luck Glory International Limited, which owns a 15.33% stake in CUIRC.
The inland railway container terminals are strategically located at regional economic centres across the country and are part of China’s intermodal transportation network. There are currently 10 terminals in operation – in Kunming, Chongqing, Chengdu, Zhengzhou, Wuhan, Xi’an, Dalian, Qingdao, Ningbo and Tianjin.
The deal also marks the PSA Group’s first foray into China’s railway container terminal facilities and extends its network in China beyond its 11 coastal container terminals in Dalian, Fuzhou, Guangzhou, Tianjin, Dongguan, Lianyungang and Guangxi Beibuwan (Qinzhou).
Mr Tan Chong Meng, Group CEO, PSA International, said, “The CUIRC project is a game changer for PSA and fits into our overall strategy for China. With our current presence in major China gateway ports, PSA is well-positioned to develop synergies with CUIRC to grow integrated sea-rail intermodal operations across the world’s second largest economy. I am confident that we will be able to forge strategic relationships with our partners, leveraging our complementary strengths to make the collaboration a success.”
Today, China’s railway container sector only carries about 2-3% of the country’s seaport container volumes, compared to other markets such as Europe and the USA where the rail sector takes 15-40% of container volumes. The potential for further growth of China’s railway container sector is supported by China’s ongoing initiatives such as the ‘One Belt One Road’ and ‘Western Region Development Program’, along with railway reforms.
Source: PSA Singapore Terminals