Cosco, China Ocean Shipping take stake in Suez CT from Maersk

INTERNATIONAL law firm Orrick, Herrington & Sutcliffe LLP says it is advising Chinese shipping giant Cosco Pacific Limited and the Hong Kong-listed arm of China Ocean Shipping (Group) Company in their acquisition of a "substantial interest" in the Suez Canal Container Terminal (SCCT) from Danish shipping company AP Moller Maersk (APMM)

SCCT is a transhipment centre for the eastern Mediterranean at the northern end of the Suez Canal. SCCT, established under a 30-year concession to build, operate and manage the new terminal, is owned through a shareholding structure involving more than a dozen stakeholders, but managed by Maersk.

Phase I of the US$750 million project includes a quay of 1,200 metres housing 12 super post Panamax ship-to-shore gantry cranes and 36 yard cranes. Further expansion will enable the facility to handle more than five million TEU of throughput annually, a statement from Orrick said.

Christopher Stephens, Orrick's managing partner for Asia and China team leader, said: "As Chinese companies continue to amass large amounts of capital, they will continue to look for strategic investments in other countries to expand operations, find new markets, diversify risks and acquire technology and expertise."