Amazing! This Chinese company acquired the world largest coal export port! | Sowoll

Release time: Tuesday, June 26, 2018
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Recently, China Merchants Port Holdings Company Limited announced that it had formally completed the acquisition of Port of Newcastle, Australia on June 14. It is reported that the state-owned company acquired 50% equity of the port at a total consideration of 607.5 million Australian dollars (approximately 2.9 billion yuan).

Now, China has won the world's largest coal export port. And we gained 98-years management rights!

Newcastle, the oldest port in Australia, is located on the east coast of Australia. This port is Australia’s second largest port. And 40% of Australia’s coal exports focus on this port. In 2017, the Newcastle Port achieved a throughput of 167 million tons, of which coal reached 159 million tons, becoming the largest coal export port in the world.

Why is Newcastle so important to China? In fact, although coal resources in China are very rich, it is still needed large amount of coal into China. The data shows that in 2017, China imported 270,900,000 tons of coal, of which about 80,600 tons came from Australia, accounting for about 30% of total imported coal. After getting the Newcastle Port, Australia’s high-quality coal will be continuously transported to support China’s economic development needs.

The operating model of Newcastle Port is the “landlord port”. It means that Chinese companies have been managing the port for 98 years since 2014 and they owned land lease rights. According to statistics, the four port areas in Newcastle, 21 berths (including 9 for coal) and 792 hectares (including about 200 hectares of open space) all belong to China in following 100 years.

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