This marks Keppel T&T’s first port project along Yangtze River, which is a major trade route in China. The joint venture, Wuhu Sanshan Port Co, Ltd (Wuhu Sanshan), will be 50:50 held by Keppel T&T and Sinotrans Ltd. respectively. Wuhu Sanshan will have an initial registered capital of RMB280 million, injected by the two shareholders in equal proportion. Apart from port operations, Wuhu Sanshan also aims to provide integrated logistics services such as international freight forwarding, and other third party logistics services. This project is Keppel T&T’s second partnership with Sinotrans Group, with their first being Lanshi Port, a river port along the Pearl River, in Foshan, Guangdong Province.
Keppel T&T CEO, Mr Pang Hee Hon said, “Wuhu is experiencing strong economic growth due to its high level of industrial activities arising from the attractive and business-friendly environment. Therefore, Wuhu Sanshan port’s strategic location at the intersection of major industrial hubs along the lower reaches of Yangtze River will allow Keppel T&T to take another important step in our strategy to expand beyond our base in southern China.”
Wuhu City, the second largest economy in Anhui province, is located near economic hubs, Shanghai and Nanjing, the capital of Jiangsu province. It is also an important rail hub in eastern China with five major railway lines passing through it.
Consequently, this has enabled Wuhu to capitalise on its location for growth. In 2010, Wuhu’s GDP reached RMB110.86 billion, an increase of 18.2% over the previous year. Wuhu’s GDP is projected to double during China’s 12th Five-year Economic Plan period (2011 to 2015), from RMB100 billion to RMB300 billion.