Recently, an article in French publication Le Point alleged that the Chinese government, through the Chinese state-owned shipping group COSCO, has a 30% stake in Kao Ming Container Terminal Corp., which has a 50-year concession to operate Terminal No. 6 in Kaohsiung port. COSCO’s stake is held via a Taiwan-incorporated entity whose Chinese name is literally translated as Cheng Lung Investment. The article also pointed out that OOCL, which leases berths 65 and 66 in Kaohsiung, is a COSCO subsidiary.
However, Taiwan's Ministry of Economic Affairs (MOEA) has assured that there is a low risk of mainland Chinese influence in the country's ports. The MOEA said on 24 October that its investment review committee and the Ministry of Transport and Communications had studied and approved Cheng Lung Investment’s involvement. The Ministry added that the interest of Chinese shareholders in state infrastructure is not to exceed 50% and their stakes must be less than those held by other foreign investors. Chinese interests are also barred from having any control over the operations of state assets.
MOEA pointed out that the state-backed liner operator Yang Ming Marine Transport, is Kao Ming’s largest shareholder, with a stake of 47.5%. Yang Ming’s chairman, Cheng Cheng-mount, is, concurrently, Kao Ming’s chairman. Yang Ming is also planning to increase its shareholding in Kao Ming and expand its control.
Source: container-news.com