CMPort completes its acquisition of the Port of Newcastle in Australia,Achieving a full coverage of the six continents
On 14 June 2018, China Merchants Port Holdings Company Limited (“CMPort” or “the Company”) completes its acquisition of the Port of Newcastle, the largest port on the east coast of Australia, following the completion of its acquisition of the Brazil's 2nd largest container terminal Paranaguá Container Terminal (TCP) in February 2018. The acquisition of the Port of Newcastle is CMPort’s first step to invest in Oceania, which signifies that the Company's overseas port network has expanded from Asia, Africa, Europe, North and South America to Oceania, achieving a full coverage of the six continents.
The Port of Newcastle will complement the current trading network covered by the Company’s port portfolio, and will further generate synergies and positive long-term financial return to the Company. Meanwhile, with the acquisition, the Company will further achieve its “Port” and “Park” development under the “Port-Park-City” model, which aims to operate its core port business and develop parks and ancillary infrastructure, thereby building a port-centered ecosystem and helping CMPort to move towards a world’s leading comprehensive port service provider.
About the Port of Newcastle：
On 6 February 2018, CMPort announced to acquire 50% of the total interest (including shareholders’ loan of AUD162.5 million) of the Port of Newcastle with a total consideration of AUD607.5 million (equivalent to approximately HK$3,809 million). The Port of Newcastle is the largest port on the east coast of Australia and the world’s largest coal export port. Its principal business includes port management (such as vessel scheduling), port trade development, wharfage and berth services, channel dredging and survey, port asset maintenance, property management and resources development.
The Port of Newcastle is a “Landlord Port” with 98 years of management right and land lease right since 2014. It consists of a total land area of 792 hectares, including approximately 200 hectares of vacant port land available for further development. The Port of Newcastle consists of 4 ports precincts with 21 berths, among which 9 berths are dedicated for coal. Its total design capacity is 211 million tonnes, and it handled bulk cargo volume of 167 million tonnes in 2017, of which 159 million tonnes were generated from coal. The Port of Newcastle is the only gateway port for Hunter Valley coalfields which produce high-quality thermal coal and handle approximately 40% of Australia’s export volume of coal.
