PSA has taken a stake in China United International Rail Containers Co. Limited (CUIRC), through the acquisition of Hong Kong-based Luck Glory International Limited, which owns a 15.33% stake in CUIRC. “The investment makes PSA the only global terminal operator with a shareholding in CUIRC currently,” PSA pointed out.

“The inland railway container terminals are strategically located at regional economic centres across the country to form the core 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,” PSA said in a statement. The deal is the PSA Group’s first foray into China’s intermodal rail 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, 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.”

“China’s railway container sector only carries about 2% to 3% of the country’s seaport container volumes,” noted PSA. The company believes that will change as 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, together with progressive railway reforms.

Established in 2007, CUIRC is part of China Railway Corporation. Besides PSA, 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.

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This complete item is approximately 300 words in length, and appeared in the October 2016 issue of WorldCargo News, on page 18. To access this issue download the PDF here.