Chinese consortium invests $1bn in Turkey’s Kumport

A consortium of Chinese port interests has agreed to  to buy 65% of the Kumport terminal on the outskirts of Istanbul for $1bn. The consortium  – which includes  terminal operators China Merchants and Cosco Pacific with  CIC Capital – said the rationale behind the  acquisition lay with the Chinese government’s ambitions to revive the maritime and overland “silk routes” between China and Europe.
The three companies will jointly invest $940m, while the remaining 35% stake is retained by Oman’s sovereign wealth fund, the State General Reserve Fund (SGRF).
 “The company is entering  a new, exciting phase,” SGRF executive president Abdulsalam Al Murshidi said. “The partnership with CMHI and Cosco Pacific – with their international portfolio of port terminals, their respective experience in investing, managing and operating overseas port operations as well as their respective relationships with liners – will add further value to Kumport’s operations.”
Li Jianhong, chairman of the board of directors of CMHI, said: “With the promising economic prospects of Turkey and the hinterland of Kumport, its position as an important node situated along both the Silk Road Economic Belt and the 21st Century Maritime Silk Road, and with the Chinese government’s pursuance of the One Belt, One Road initiative, [there is] strong growth potential for demand for container ports and logistics services.”

Source: theloadstar