NO: DELENG / 2017 / 70663
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German Govt approves COSCO's 24.9% stake in HHLA's CTT
By Seaandcoast | 20/05/2023
The German government's recent approval of Chinese company COSCO Shipping Ports Limited's (CSPL) 24.9% stake in Container Terminal Tollerort (CTT), a subsidiary of Hamburger Hafen und Logistik AG (HHLA), one of Europe's largest port operators, is set to have a significant impact on trade flows between Asia and Europe. The approval will allow CTT to expand and become a preferred handling location for COSCO, a long-standing customer of HHLA. This move will concentrate freight flows between Asia and Europe, creating more opportunities for global trade.
HHLA welcomed the decision, stating that it would finalize the transition with CSPL soon. The approval will secure employment and boost Hamburg's national and international importance as a logistics hub, as well as reinforcing Germany's position as an industrialized nation. China is currently Germany's and the Port of Hamburg's largest trading partner, with approximately 30% of goods handled in the port originating from or going to China.
Initially, the deal had been agreed upon as a 35% stake, but concerns about national security implications led to a reduction of the stake. The reduction was aimed at addressing the concerns of various stakeholders, including government ministries and the opposition, who were worried that granting COSCO too much influence over the company's operations could pose risks. The final green light from the German government follows conditional approval granted in October 2022.
The decision is set to have a positive impact on the economy, with the deal expected to create more jobs and boost Germany's position in the global logistics market. It also highlights the importance of global trade and cooperation between nations, particularly in the wake of the COVID-19 pandemic.