COSCO Shipping Ports has announced it will acquire a 16.82% stake in Qingdao Port International (QPI), operator of China's sixth busiest port.

Shanghai China Shipping Terminal Development Co., Ltd. (SCSTD), a wholly-owned subsidiary of COSCO Shipping Ports, will pay CNY5.8 billion (US$844 million) for the shares in QPI, of which approximately CNY3.2 billion (US$465 million) will be settled by the transfer of a 20% equity interest in Qingdao Qianwan Container Terminal Co., Ltd. (QQCT) to QPI and the remaining approximately CNY2.6 billion (US$378 million) will be settled in cash.

COSCO Shipping Ports’ shareholding in QPI will increase to approximately 18.41% in total.

COSCO and QPI also announced to enter into the Strategic Cooperation Agreement: the parties expressed the intent of the following strategic co-operation in the future:

1. further deepening co-operation towards developing the Port of Qingdao into an international shipping hub in Northeast Asia;
2. co-investing in overseas terminal projects (including the Khalifa Port Container Terminal II project in Abu Dhabi); and
3. setting up terminal project management company(ies) to co-operate in the businesses of management and operation of PRC and overseas terminal project(s) of COSCO agreed by the parties.

COSCO has been extending its port network with several large deals around the world in recent years.