en.Wedoany.com Reported - On the evening of April 2, Ningbo Ocean Shipping Co., Ltd. (referred to as "Ningbo Ocean Shipping"), a subsidiary of China's Ningbo Zhoushan Port, and Beibu Gulf Port Co., Ltd. (referred to as "Beibu Gulf Port") respectively issued announcements. Beibu Gulf Port plans to invest 5.47 billion yuan to make a strategic investment in Ningbo Ocean Shipping.

Ningbo Ocean Shipping intends to introduce Beibu Gulf Port as a strategic investor through a private placement of A-shares to specific investors. The proposed number of shares to be issued is 145,403,704, with an issue price of RMB 7.53 per share. Beibu Gulf Port intends to subscribe to 72,701,852 shares, with a subscription amount of RMB 547,444,945.56, accounting for 5% of Ningbo Ocean Shipping's total share capital after the issuance. On the same day, Beibu Gulf Port and Ningbo Ocean Shipping signed the "Conditional Strategic Cooperation Agreement" and the "Conditional Share Subscription Agreement".

Part of the strategic cooperation agreement is as follows:

Cooperation Objectives: To advance national strategies such as the "Belt and Road" Initiative, the "New Western Land-Sea Corridor Strategy", and the "Regional Comprehensive Economic Partnership Agreement", and leveraging Ningbo Ocean Shipping's advantages in shipping resources such as route network, geographical location, and shipping capacity, as well as Beibu Gulf Port's resource advantages in ports in the southwestern region, to deepen strategic cooperation between the two parties, achieve complementary advantages, mutual benefit, and win-win cooperation, promote Ningbo Ocean Shipping's goal of becoming a "leading comprehensive shipping service provider in Asia, connecting the world", and assist Beibu Gulf Port in building the Beibu Gulf International Gateway Port and International Hub Seaport, strengthening Beibu Gulf Port's hub function connecting the ASEAN market.

The two parties will mainly engage in strategic cooperation in areas such as port services and integrated logistics. Regarding port services, Ningbo Ocean Shipping will, based on Beibu Gulf Port's development needs and while maintaining stable operation of existing routes, leverage the complementary regional advantages between Beibu Gulf Port and the Yangtze River Delta to help Beibu Gulf Port expand its business volume, increase port cargo throughput, and assist in its construction into the Beibu Gulf International Gateway Port and International Hub Seaport; Beibu Gulf Port will collaborate with Ningbo Ocean Shipping to reduce berthing waiting times, improve operational efficiency, jointly develop premium domestic trade routes, promote the healthy, stable, and sustainable development of routes, and help Ningbo Ocean Shipping expand its transport volume, leverage economies of scale, and become a "leading comprehensive shipping service provider in Asia, connecting the world".

Regarding integrated logistics business, relying on Beibu Gulf Port's relatively complete port network in the southwestern region, Ningbo Ocean Shipping's route network covering international, coastal, and Yangtze River routes, as well as the resources of both parties' associated port and shipping enterprises, the two parties will actively promote business cooperation, provide customers with more comprehensive port logistics services based on market principles, and enhance competitiveness. At the same time, both parties will jointly strengthen customer marketing, negotiate the development of "premium routes", increase the density of existing routes, enhance cargo attraction, and promote mutual business growth.

Both parties stated that Beibu Gulf Port, as a strategic investor to be introduced by Ningbo Ocean Shipping, can generate industry synergies with Ningbo Ocean Shipping, and seek long-term common strategic interests through coordination and complementarity, including:

1. Business Synergy and Route Sharing

① Ningbo Ocean Shipping will designate Beibu Gulf Port as its sole home port in South China: Ningbo Ocean Shipping supports the high-quality construction of the Beibu Gulf International Gateway Port and International Hub Seaport, will establish an empty container repositioning center at Beibu Gulf Port, and will promote the upgrade of its Nanning office to a South China regional company when conditions are mature.

② Increased frequency of domestic and international trade routes: Jointly open international trade routes to Southeast Asia, the Middle East, etc., and cooperate with Ningbo Ocean Shipping to develop multimodal transport products for the "Beibu Gulf Port - Ningbo Zhoushan Port - Global" route. Increase shipping capacity deployment at Beibu Gulf Port, create premium express lines under the "Two Ports, One Shipping Service" model, and expand and strengthen domestic trade business; actively expand international trade business, develop water-to-water transshipment services between Beibu Gulf Port and Ningbo Zhoushan Port, and combined domestic and international trade vessel operations, increase and enhance near-sea routes from Ningbo via Beibu Gulf Port to Vietnam and other Southeast Asian countries, and cultivate ocean routes to regions such as the Middle East and Africa.

③ Cargo source development: Promote business transformation such as "bulk to container" and "road to water", increase the container vessel load factor and transport volume of Ningbo Ocean Shipping, and increase the cargo throughput of Beibu Gulf Port.

2. Regional Market Expansion

① Hinterland synergy: Cooperate at a high level to build the New Western Land-Sea Corridor and the Chongqing-Ningbo Express Line. Both parties will jointly strengthen combined cargo solicitation and increase cooperation and experience exchange in sea-rail intermodal transport. Utilizing the New Western Land-Sea Corridor train services, help Ningbo Ocean Shipping break through regional limitations, extend its shipping services to inland areas such as Sichuan and Chongqing, and explore emerging markets.

② International layout: Leverage the advantages of Guangxi Beibu Gulf Port International Port Group in overseas investments to promote both parties' expansion of business along the "Belt and Road".

3. Technology and Management Empowerment

① Digital synergy: Share smart port data platforms with Ningbo Ocean Shipping to optimize vessel scheduling and cargo tracking efficiency.

② Green shipping cooperation: Jointly build low-carbon port facilities (such as shore power systems) with Ningbo Ocean Shipping, promote environmentally friendly ship technology, and enhance Ningbo Ocean Shipping's ESG rating.

③ Talent cultivation and exchange: Through the strategic investment, establish a talent exchange and cooperation platform for both parties. Leveraging Ningbo Ocean Shipping's advantages in technology R&D resources and innovation, establish a regular mechanism for personnel exchange and joint training. Beibu Gulf Port can accelerate the cultivation of professionals in cutting-edge fields such as intelligent port construction and low-carbon shipping technology application, and reserve core talent for strategic directions such as port intelligent transformation and green, low-carbon development.

Port Circle believes that Ningbo Ocean Shipping is a subsidiary of Ningbo Zhoushan Port. Beibu Gulf Port's strategic investment in Ningbo Ocean Shipping essentially aims to strengthen cooperation between the two major ports by leveraging Ningbo Ocean Shipping's route network. On March 25, Zhejiang Provincial Seaport Group, Ningbo Zhoushan Port Group, and Beibu Gulf Port Group fully exchanged views on strengthening strategic cooperation, exploring market cargo sources, densifying route networks, promoting river-sea intermodal transport, overseas investment and construction, and advancing the application of "AI+" in business, reaching broad consensus.

With ports in the Ningbo area as its core, Ningbo Ocean Shipping, through strategic cooperation and introducing a new port shareholder, can significantly expand its cargo solicitation radius, expand its domestic trade business, and enhance Ningbo Zhoushan Port's capability for international trade water-to-water transshipment cargo consolidation.

Located far in the southwest, after years of rapid growth, Beibu Gulf Port's container throughput in the first two months of this year increased by only 1.5% year-on-year. Facing the strong rise of nearby Yangpu Port and Zhanjiang Port's continued expansion of container business, it needs to find new growth points. After the strategic investment, Beibu Gulf Port can leverage the route advantages of Ningbo Zhoushan Port and Ningbo Ocean Shipping to increase its own throughput.

Cooperation between two major port groups across regions is often difficult to implement, but the model of "Port + Shipping Company + Port" might be an effective way of cooperation.

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