Chapter 744 Two Businesses

At the same time, Ed Christian, CEO of Peninsula Oriental Group, also arrived in Shanghai.

Ed Christian came to Shanghai after he went to the United States and reached an agreement with the United States to determine the timetable for Peninsula Oriental Group to take over the operation rights of the six container terminals in the United States.

After the Global Industrial Investment Fund (GII) acquired the P\u0026C Group, now the Peninsula Oriental Group, from the Dubai World Group at the end of last year, they began to negotiate with the United States to take back the operation rights of the six container terminals located there.

Because after the Dubai World Group acquired the British P\u0026C Group, the United States had some doubts about the Middle East background of the Dubai World Group, so the acquisition was approved only after the other party handed over the six container terminals in the United States to the local institutions of the United States for trusteeship.

Now that the Peninsula Oriental Group is British-funded, with the relationship between Britain and the United States, their previous concerns are no longer valid, so the Peninsula Oriental Group began to seek to take back the operation rights of the six ports in the United States.

Although this process was not smooth, it was finally resolved.

The Peninsula Oriental Group itself has many businesses in Asia, including the Chinese region.

Whether in HK or in mainland China, the Peninsula Oriental Group has participated in the construction of many ports and related facilities.

This time when he came to the Magic City, Ed Christian had two main tasks.

The first was to bring orders for natural gas (LNG) carriers.

Before this, the shipping business of the Peninsula Oriental Group was mainly container transportation, but you must know that Barron also has control over the United Energy Group, and also owns the largest natural gas pipeline network and British power distribution company in the UK. Therefore, whether it is to transport their natural gas to the UK, Europe, or Asia, natural gas (LNG) carriers are needed.

Therefore, the shipping business of the Peninsula Oriental Group also needs to increase the transportation business of natural gas.

At present, the natural gas carriers of the Peninsula Oriental Group are all leased, but Barron knows that the demand for LNG transportation will continue to increase in the future, so the Peninsula Oriental Group has plans to purchase LNG carriers.

At this time, in the field of LNG carrier manufacturing, the shipyards in South Korea still account for the highest share in the world.

As we all know, during World War II, the United States had outstanding shipbuilding capabilities. However, due to the introduction of the Jones Act, it was required that the main parts of the hull must be manufactured in the United States, the American flag must be hoisted, and more than 75% of all ships and more than 75% of the crew must be Americans.

This is undoubtedly tying one's own hands, which has restricted the development of the American shipbuilding industry and caused a sharp decline in shipbuilding orders.

Due to the high cost of shipbuilding in the United States, related industries have gradually been transferred to South Korea.

China only began to develop LNG ship manufacturing technology at the end of the last century. At that time, South Korea and Japan had the most mature LNG transport ship technology. The two countries have been competing fiercely in this field. In the end, South Korea won and occupied the vast majority of the LNG ship market - even ten years later, South Korea's shipbuilding industry can still occupy more than 70% of the global LNG ship manufacturing market.

As for China, it was not until 2008 that it delivered the first LNG ship built by Hudong-Zhonghua Shipyard under China Shipbuilding Industry Group.

Up to now, China's shipyard has not opened up the international market. The LNG ships built before were purchased by China's shipping group.

It can be said that the Magic City is very eager for the order of LNG ships from Peninsula Oriental Group this time - Peninsula Oriental Group is preparing to build 5 LNG ships at one time.

After all, once this agreement can be completed, it will officially show that China's shipbuilding industry has overseas orders for the highest-end LNG ships, which is of great significance to them.

Being able to build is one thing, and being able to use it is another.

It's like a product that has never been purchased by users, so no one dares to buy it first. After all, no one has heard of user feedback and doesn't know how good the quality is.

This is the case with China's LNG ships. If they have not been used by overseas customers, it will be difficult to open up the international market. You know, at this time, China's manufacturing is not recognized by many people.

In fact, the management of Peninsula Oriental Group was also quite skeptical about ordering LNG ships from China Shipyard at the beginning, but in the end, under Barron's instruction, Ed Christian came to Magic City.

And relying on this order, Barron also hopes that Peninsula Oriental Group can deepen its relationship with China and participate in the construction and operation of some Chinese ports in the future.

The intention reached by both parties is that Peninsula Oriental Group is ready to invest US$750 million to order 5 LNG ships from Hudong-Zhonghua Shipyard.

With the help of Shanghai, they have also contacted some shipping groups and port groups in China, and will cooperate in shipping and port management in the future.

This also involves another purpose of Ed Christian's visit to Shanghai this time. He also held talks with the senior management of COSCO Group and proposed to the other party that Peninsula Oriental Group and COSCO Group cooperate to jointly bid for the acquisition of the controlling stake in the largest port in Greece, Piraeus Port.

In Baron's previous life, COSCO Group bought 67% of the shares of Piraeus Port six or seven years later.

In fact, COSCO Group had participated in the competition for this port earlier, but after the leader of the Greek Left Alliance Tsipras came to power, the process of privatizing its state-owned assets was suspended. After a period of time, the process was restarted. After many twists and turns, COSCO Group finally got the controlling stake in Piraeus Port.

But last year, COSCO Group acquired the 35-year operating rights of Piraeus Port for 4 billion euros, but it is still difficult to acquire the controlling stake in this port.

However, if the Peninsula Eastern Group, which is backed by Baron, participates, it is still very hopeful that the two sides will cooperate to obtain control of this port and finalize it before the Greek Left Alliance comes to power.

After all, due to the outbreak of the sovereign debt crisis in Greece, their creditors demanded that Greece sell some state-owned assets in exchange for funds to repay debts. According to the news from Baron, the Greek government is also very interested in this and is likely to start bidding for some state-owned assets including the controlling stake in Piraeus Port this year.

Therefore, after Peninsula Oriental Group proposed this cooperation plan, COSCO Group was still very interested and was also studying the feasibility of this plan.

You know, from a geographical point of view, Piraeus Port is the gateway to Asia, Eastern Europe and North Africa. If it can be developed into the largest port in the Mediterranean, it will be very important for the development of Peninsula Oriental Group.