Cosco to hold back on Hamburg deal

Cosco Shipping Ports (1199) says it will delay completing the acquisition of a stake in a container terminal in Germany's largest port to the end of the year.

The Chinese shipping company announced in September 2021 that it will spend 65 million euros (HK$509 million) to acquire a 35 percent minority stake in the Hamburger Hafen und Logistik Container Terminal Tollerort, which operates the container terminal Tollerort in Hamburg port, capable of handling the largest container vessels.

The delay is because certain closing conditions have not been satisfied yet, it said.

German economy minister Robert Habeck said in an interview with Reuters last week that he was leaning toward not allowing the deal, which would give China a stake in German critical infrastructure.

However, the port city's mayor said Germany would put its port of Hamburg at a competitive disadvantage if it quashed a bid from Cosco to buy a stake in a container operator.

A rejection would be "a one-sided, competition-distorting disadvantage for Hamburg compared to Rotterdam and Antwerp, where Cosco already owns terminal shares," said Mayor Peter Tschentscher.

"In order to keep up with international competition, it must also be possible for shipping companies to participate in terminals in Hamburg if this makes business sense," Tschentscher added.

Habeck said the government was working on a new trade policy with China to reduce dependence on Chinese raw materials, batteries and semiconductors, promising "no more naivety" in trade dealings with Beijing.