Keppel Logistics (Foshan) Limited (KLF), a subsidiary of Keppel Telecommunications & Transportation Limited (Keppel T&T), has acquired a 60%-stake in Foshan Sanshui Port Development Co., Ltd (Sanshui Port), in Foshan City, Guangdong Province, China for approximately RMB 166 million (US$26.9 million).

Located strategically along the Xijiang River, which is the western tributary of the Pearl River, Sanshui Port will complement KLF's existing Lanshi Port, which is also located in Foshan City. Sanshui Port's geographical location and its proximity to railway cargo hubs and major highways allow it to effectively serve the rest of Guangdong, as well as the nearby trading hubs in Hong Kong, Shenzhen and Nansha.

The 22.7-ha port has a 160m long multi-purpose berth and over 5,000 sm of warehousing space. This will increase KLF's total warehousing capacity to 81,000 sm. In operation since 2000, Sanshui Port has an annual handling capacity of approximately 300,000TEU.

Mr Pang Hee Hon, CEO of Keppel T&T said:

"Sanshui Port will expand our presence in Southern China, where we have successfully operated for the past 19 years. It will also enable us to meet untapped demand in the fast growing province and synergise our existing operations."

Despite the global economic downturn, in 2012, Guangdong enjoyed robust growth with its GDP increasing by 10.2% year-on-year, while its import and export grew by 7.7%. Since its inception in 1994, KLF has grown Lanshi Port's throughput by more than six-fold, from 41,600 TEU to 264,000 TEU in 2012.

Source: Keppel T&T