Signing ceremony

On 24th August, COSCO Pacific Ltd. (“COSCO Pacific”) & Shantou Port Affairs Group Co., Ltd. (“Shantou Port Affairs Group”) signed the Letter of Intent in Shantou China. Through a series of resource integration by corporate restructuring and capital operation, COSCO Pacific will exert its experience on port operation as well as its financial advantage together with the asset advantage of Shantou Port Affairs Group, to co-operate in developing a sizable and competitive port enterprise and promoting the listing of the enterprise.

Mr. Li Feng, Party Secretary of Shantou, Mr. Li Gengjian, Vice Mayor of Shantou , Mr. Li Yunpeng, Executive Vice President of China Ocean Shipping (Group) Company (“COSCO”) and Chairman of COSCO Pacific and Mr. Zhang Liang, Executive Vice Chairman and President of COSCO Hong Kong Group attended the signing ceremony. Mr. WANG Xingru, Vice Chairman & Managing Director of COSCO Pacific and Mr. Zhang Qingchun, Managing Director & General Manager of Shantou Port Affairs Group signed the Letter of Intent. Mr. Li Gengjian, Vice Mayor of Shantou said, “Shantou will create favorable conditions and provide efficient services of high quality for this co-operation, achieving win-win result. COSCO, COSCO Hong Kong Group and COSCO Pacific will further bring their terminals' infrastructure, management, financial and business advantages into play, to facilitate the upgrading of Shantou's port and economic development in Shantou district”. Mr. Li Yunpeng, Chairman of COSCO Pacific, expressed his appreciation for the continuous support to COSCO from Shantou government and Shantou Port Affairs Group, “The signing of Letter of Intent is important to execute the substantial terms of Strategic Co-operation Structure Agreement which was signed last year between COSCO and the Government of Shantou. COSCO will continually support Shantou's port infrastructure and logistic development. COSCO Pacific will utilize the successful experience of the terminal operation in Greece and implement to the port infrastructure and operation in Shantou. By the mutual and sincere cooperation, integration of advantages and win-win cooperation, it can achieve the rapid development for the ports' infrastructure, techniques as well as the management so as to conduce Shantou to be the shipping center for the Taiwan Strait area and southeast region of Guangdong Province.”

About Shantou Port:

Shantou, located at the east end of Guangdong Province, is one of the earliest established Special Economic Zones in China. It also belongs to the economic zone of the west side of the Strait, emphasized developmental zone of the Country, as well as the pilot city of Guangdong “Strong Marine Province Policy”. Shantou is rich in marine resources and has a huge potential for development of foreign trade, habour industry and port logistics.

With a history of more than 150 years, Shantou Port is one of the 25 major hub ports in China. In 2011, its throughput of bulk cargo was over 40 million tons, whilst the throughput of container is 1.1 million TEUs.