Sime Darby to float Weifang Port

The Malaysian-based  Sime Darby multinational conglomerate this week announced its intention to float Shandong Province’s Weifang Port on one of China’s stock exchanges as it looks to monetise its assets and maximise its returns. Sime Darby acquired the port from the authorities in Shandong in 2005 and has since invested around $300m in turning it into a profitable mid-sized seaport and increasing the number of its berths from four to 15. Its current $200m,  5-year expansion plans will see a further 8 berths added by the end of 2017 and its number of customers rise to 500.
In March 2014, it set up the Weifang Port Services Co in a joint venture with the  Weifang Port Company and  the Shandong Hi-speed Transport & Logistics Investment Company to oversee the construction, management and  maintenance  of the port’s the sea channel, anchorage and other elements of its infrastructure.
Announcing the company’s decision to list the port, Sime Darby MD  Timothy Lee claimed that the port “had been profitable since day one of the takeover”, and was recognised as one of the most efficient and cost-effective ports in China. Last year it posted pre-tax profits of $13.7m on revenues of $45.76m.

Source: thestar