CHINESE GROUP BUYS STAKE IN TINCAN ISLAND CONTAINER TERMINAL

Israeli Container Line, Zim Shipping has sold its 47.5 percent stake in Nigeria’s third biggest box terminal, the Tin Can Island Container Terminal (TICT) , to a joint venture arrangement between the Hong Kong-listed port operator China Merchants Holdings (International) and China-Africa Development Fund. The shipping company is expected to raise about US$154million from the deal.

The Board of Chinese Merchant Holdings International (CMHI) on 5 November announced the establishment of a joint venture with China Africa Development Fund (CADF) to form a joint venture, Boom Day, on a 60:40 equity basis with the intent of acquiring a stake in a container terminal. The Board also announced that it has entered into an acquisition agreement with Zim “at an aggregate consideration of US$154million to procure the sale of 47.5 percent of the issued capital of TICT”.

The company explained that it has been “working towards capturing available opportunities overseas as one of the means to effectively add new growth drivers to its existing and sustainably growing, ports business.The Board believes that the rapid-expanding economy in Africa in recent years has led to increasing local demand for container handling services and, in turn, offers interesting business potential to the Group”.

Records with government agencies indicate owners of the Tin Can Island Container Terminal Limited, operator of the Tin Can Island Container Terminal to be Bellore Group as lead, Zim Integrated Shipping Services and a local operator linked to LANSAL Shipping. The concessionaire has fifteen years lease agreement with Nigerian Ports Authority commencing from 2006. The capacity of the facility is put at 400,000 TEUs per annum.