The German government has approved the acquisition of a minority stake if less than 25% in the operating company HHLA Container Terminal Tollerort GmbH (CTT) by the Chinese company COSCO Shipping Port Limited (CSPL).
The decision comes after the necessary investment review as required for the acquisition of shares by companies from non-EU companies, with the acquisition being subject to conditions imposed by the Federal government.
Angela Titzrath, chairwoman of Hamburg Hafen und Logistik AG (HHLA)’s executive board, said: “We appreciate that a solution has been found in objective and constructive talks with the Federal Government.”
CSPL initially made a bid last year to take a 35% in the terminal, which is one of three terminals operated by HHLA.
The sale of the shares was subject to approval buy the German government under investment law and, in August, CSPL and HHLA agreed to an extension of the deadline until October 31 to bring the process to a successful conclusion.
Earlier this week, Reuters reported that there had been a divide within the German coalition on whether to proceed with the deal and allowing CSPL to take a smaller stake than initially planned was the compromise.
HHLA noted that it aims to negotiate a corresponding adjustment of the agreement with CSPL in the near future.
Titzrath said: “We want to continue to successfully develop the business relationship with CSPL that has existed for 40 years.
“Neither CTT, nor HHLA, nor the Port of Hamburg will be sold to China. HHLA will remain an independent, listed company with the Free and Hanseatic City of Hamburg as its most important shareholder.”
According to Titzrath, CSPL’s investment will see CTT become a preferred hub for Asian traffic.
The company will retain sole control over all major decisions of the terminal and CSPL will not receive any exclusive rights to CTT, with the terminal to remain open to container volumes from all customers.
Titzrath added that CSPL will not gain access to “strategic know-how” and IT and Sales data remain the sole responsibility of the German terminal operator and that German law will continue to apply in all matters.
“The cooperation between HHLA and COSCO creates no one-sided dependencies. Quite the opposite: it strengthens supply chains, secures jobs and promotes value creation in Germany,” she said. “Smoothly functioning logistics are a basic requirement for global trade flows and prosperity.”
China accounts for 20% of global economic output far ahead of the US, and cooperation between Hamburg and CSPL would help strengthen the port as a logistics hub in the North Sea, Titzrath added.
“More can be achieved by working together than by working against each other,” she said. “The solution to the major issues facing humanity, starting with climate protection, cannot succeed without China. Good cooperation in logistics also helps.”
