Cosco Pacific obtains 20pc in major Egyptian container terminal

COSCO Pacific, which has terminal investments in Hong Kong and China has acquired a 20 per cent stake in Egypt's Suez Canal Container Terminal (SCCT) in Port Said, according to a company release.

The SCCT statement did not disclose the amount involved, only saying that The Hague-based APM Terminals will hold 55 per cent in the facility that serves the Suez Canal.

Under the agreement the IFU-Danish Development Bank will no longer be a shareholder, and the shareholdings of other parties will remain the same: Suez Canal Authority (10 per cent), National Bank of Egypt (five per cent) and the Egyptian private sector (10 per cent).

"Our port has successfully attracted an important new partner in the Chinese terminal operator, Cosco Pacific, and added new liner services through Cosco shipping lines. Cosco will become the third liner customer of SCCT in 2008, joining our clients CMA CGM and Maersk Line," said SCCT managing director Jens Floed.

"The new agreement will increase SCCT's container handling volumes and open the door to new Chinese business in the region, strengthening SCCT as the largest terminal operator in Egypt and market leader in the eastern Mediterranean. SCCT is in the process of starting Phase II, which will increase terminal capacity from 2.5 million TEU to 5.1 million TEU raising our total investment to US$730 million," he said.

SCCT serves as an important link between the Far East and Europe trade. After the completion of Phase II the total quay wall length will be 2,400 metres and liner customers will have the use of 24 post-panamax quay cranes and the total number of refrigerated plugs will be doubled to 3,000