COSCO SHIP PORT (01199) announced that on December 8, 2025, its wholly-owned subsidiary, China Shipping Ports, entered into a capital increase agreement with China Shipping North Control. According to the agreement, the parties agreed to proportionally inject a total of $20.57 million into their joint venture, COSCO Shipping Terminals (USA) LLC. China Shipping Ports and China Shipping North Control contributed $8.228 million and $12.342 million, respectively.
The joint venture is owned 40% by China Shipping Ports and 60% by China Shipping North Control. On June 30, 2007, the two parties signed a limited liability agreement to establish the joint venture, with initial capital contributions of $80,000 and $120,000, respectively, securing their 40% and 60% stakes.
Prior to the capital increase, the joint venture’s total capital stood at $6.9 million, with ownership remaining unchanged at 40% and 60%. The capital injection was completed on the announcement date (December 8, 2025), maintaining the existing shareholding structure.
The additional funding aims to enable the joint venture to fulfill its share of obligations in the liquidation of SSA Terminals (Seattle), LLC, in which it holds a one-third stake, and to cover related payments. This move will facilitate an efficient liquidation process, eliminating the group’s exposure to this non-core associate and reducing potential future losses and contingent liabilities.
The transaction aligns with the group’s strategic goal of optimizing and streamlining its terminal portfolio by focusing resources on core operations while divesting or gradually reducing non-strategic investments.
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