China Merchants Port allies with quasi-SWFs to invest overseas

21 October 2019 - 12:00 am UTC

China Merchants Port is teaming up with two Chinese quasi-sovereign wealth funds to invest in overseas ports, the company told Inframation.

The port operator signed a strategic cooperation agreement Friday with the China-Africa Development Fund (CADF) and China-Portuguese Speaking Countries Cooperation and Development Fund. The pact concerns port development, acquisitions and construction of affiliated infrastructure, China Merchants said in a statement.

The tie-up is at its preliminary stage, and the partners have not yet decided on specific target markets or projects they will collaborate on, the spokesperson said. China Merchants Ports will work with the two China Development Bank-backed institutional investors on market development and discuss project proposals so as to co-invest in mature infrastructure projects.

The Hong Kong-based company’s portfolio spans Asia, Australia, Europe, Africa and Latin America. These include a TCP port in Brazil, Tin-can Island Container Terminal in Nigeria, the Lomé Container Terminal in Togo and the Doraleh Container Terminal in Djibouti. Brazil is the only Portuguese-speaking country where China Merchants operates port assets.

The USD 1bn China-Portuguese Speaking Countries Cooperation Development Fund, which operates under the CADF, is exploring investment opportunities in infrastructure including ports in Portuguese-speaking countries, a fund official told Inframation while confirming the China Merchants collaboration.

Read more