APM Terminals Announces Multipurpose Terminal JV at Qingdao Port
The APM Terminals Global Terminal Network will enter China’s fast-growing grain import market as part of a joint venture with Qingdao Port International.
The move marks APM Terminals’ ongoing expansion into port and terminal operations outside containerized cargo handling.
The newly developed Qingdao Port Dongjiakou Multi-Purpose Terminal, in which APM Terminals will hold a 20-percent share, is located on China’s Bohai Rim in the Shandong province, on the Yellow Sea. The Port of Qingdao is one of the world’s busiest ports, ranking seventh globally and handling a total of 468 million metric tons in 2014. Qingdao’s new Dongjiakou Port area is set to become a national hub of Chinese bulk and energy cargos, with a projected volume of more than 300 million metric tons handled annually in this new complex.
“China is a crucial center of global trade and logistics, and we are very pleased to advance our multi-port strategy of growth beyond containers in this exciting and fast-growing market,” said APM Terminals CEO Kim Fejfer.
The Qingdao port handled seven-million metric tons of grain cargo in 2014, with continued strong growth again in 2015. The Qingdao Port Dongjiakou Multi-Purpose Terminal, operated by Qingdao Port International and APM Terminals, will cater to the rising demand of grain and other general cargo and allow for improved port logistics service into the hinterland markets.
“We are fully prepared to grow with the grain market in China, and around the world,” said Fejfer. “Approximately one third of all nations are now importing at least a quarter of their grain consumption.”
In 2013, China imported around 63.4 million metric tons of soybeans, along with 14 million metric tons of corn, wheat and rice. Soybean imports, primarily from the U.S. and Brazil represent more than 80 percent of Chinese annual domestic demand.
“Worldwide seaborne grain shipments have increased to over 400 million tons annually according to the World Grain Council,” said Francois Delenclos, APM Terminals’ vice president for business development. “This requires a specialized infrastructure and expertise to keep up with this demand. This is a high-growth market where APM Terminals can invest and deploy its operational expertise in key locations.”
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