P&O Signs Vietnam Container Terminal Joint Venture
Tue Dec 6, 2005
LONDON (Reuters) - UK ports and ferries group P&O (PO.L: Quote,Profile, Research) said on Tuesday it had agreed to develop and operate a $224 million container terminal in Vietnam.
P&O, which agreed to a 3.3 billion pound ($5.72 billion) takeover by state-backed Dubai Ports World last week, said it would own 80 percent of the joint venture terminal with state-owned Tan Thuan Industrial Promotion Company (IPC).
The estimated cost of developing the terminal in Ho Chi Minh City at was $224 million, P&O said.
P&O, which has 28 container terminals and logistics operations in 18 countries, hopes the new port will absorb cargo from existing ports on the Saigon River which are scheduled to be closed over the next 10 to 15 years.
The port's total capacity is expected to reach 1.5 million teus (20 foot equivalent unit). Teus are the standard size of a shipping container.
The deal will add to P&O's stable of terminals in Asia where fast-growing freight volumes have made them attractive assets for DubaiPorts World.
Singapore government investment agency Temasek Holdings Pte. Ltd.[TEM.UL] said on Monday it had bought a 4.1 percent stake in P&O and issued a statement refusing to rule out a counter bid for the group.
Shares in P&O, which is also close to winning approval for a 1.5-billion-pound ports project on the River Thames east of London, were 2.5 percent higher at 484 p by 1024 GMT.
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