Guangzhou Port seeks finance for expansion

Guangzhou Port Co, which controls one of the largest hub ports in South China, is planning a share offering in the first half of this year as it seeks financing to expand its business, according to a senior company executive.

"It will be a big step forward for the company's business expansion, as we are positioning to develop into an international shipping center," says Song Xiaoming, vice-general manager.

The company's IPO plan to enter the Shanghai Stock Exchange was approved in late January by the China Security Regulatory Commission, the country's top securities authority.

The company was jointly founded by the Guangzhou Port Group, SDIC Communications Holding Co and Guangzhou Development Group Inc in 2010, with registered capital of roughly 5.5 billion yuan ($797 million; 754 million euros; 654 million).

The funds will be raised for construction of new docks and berths at the port in Guangzhou's Nansha district, according to the company.

Four berths with a handling capacity of 100,000 metric tons of containers each and two 70,000-ton container berths will be built at the third phase, with an investment of more than 7.4 billion yuan.

"Construction of the new berths and docks will help improve efficiency and business expansion," Song says.

In 2016, Guangzhou Port Co opened 18 new international lines, of which four were designed for Europe and the US.

"The number of containers handled increased significantly last year, thanks to the expansion of shipping lines," Song says.

qiuquanlin@chinadaily.com.cn

(China Daily European Weekly 03/10/2017 page28)