One of the leading global port operators Singapore-based PSA has invested in China United International Rail Containers Co., Limited (CUIRC), a Sino-Foreign joint venture (JV) with a mandate from the government of the People’s Republic of China to develop and operate 18 railway container terminals within the country, announces PSA’s press release.
The investment has been realized through the acquisition of the Hong Kong-based Luck Glory International Limited, which owns a 15.33% stake in CUIRC. This makes PSA the first global terminal operator with shareholding in the JV.
All the inland railway container facilities will be strategically located at regional economic centres across China to build the core of China’s intermodal transportation network. Currently 10 terminals are already in operation in Kunming, Chongqing, Chengdu, Zhengzhou, Wuhan, Xi’an, Dalian, Qingdao, Ningbo and Tianjin.
The company’s investment in CUIRC, which represents PSA’s first step into China’s railway container terminals market, 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.”
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 up 15% to 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’ – and progressive railway reforms.
CUIRC, with its headquarters in Beijing, was established in 2007 under China’s former Ministry of Railways (MOR) and became part of China Railway Corporation (CRC) in March 2013 after the MOR was dissolved and CRC took over the role of the National Railway Operator. Other joint venture partners include China Railway Container Transport Corp. Ltd, NWS Holdings Limited, China International Marine Containers (Group) Ltd, and Deutsche Bahn Mobility Logistics AG.