The proposed IFC investment is a green loan package of RMB650 million (US$100 million equivalent). The proposed investment will be used to finance the company’s purchase of two new vessels (4,600 TEU each) and various types of containers. The container ships will not be utilized for liquid fossil fuels.
In early 2021, Zhonggu signed contracts to purchase 18 vessels including two vessels to be purchased under the proposed investment, 10 of which are from Jiangsu New Yangzi Shipbuilding Co., Ltd, a subsidiary of Singapore-listed Yangzijiang Shipbuilding (Holdings) Ltd. The remaining eight are from China Merchants Jinling Shipyard Co., Ltd. These new vessels are expected to be delivered from late 2022 to early 2024. The new-built ships will mainly travel the North-South Chinese coastal route for domestic transportation.
As stated by the IFC, the total project cost is estimated at about US$1,088 million, which is to be financed by a combination of debt from both IFC and other financial institutions, as well as equity.
From the IFC's website:
Founded in 2003, Shanghai Zhonggu Logistics Co., Ltd. (“Zhonggu” - http://www.zhonggu56.com/index.jsp) is the largest private domestic trade multimodal container transportation company in China. As of 1H2021, Zhonggu operated a fleet of 109 container vessels (40 owned and the rest leased) with a total capacity of 2.4 million deadweight ton, 160,000 twenty-foot equivalent unit (TEU). The average size of owned vessels is 2,400 TEU and average age of the fleet is nine years. Zhonggu operates 48 China coastal shipping services. Zhonggu opened three intra-Asia services from China to Vietnam (Ho Chi Minh / Haiphong) and Russia (Vladivostok) in 2021. To promote multimodal services, Zhonggu has invested in several facilities to improve its inland transportation network, including one container terminal, one container yard, three logistics parks and two railway depots.
As of 30 September 2021, Zhonggu’s largest shareholder was Zhonggu Shipping Group Co., Ltd. with 57.46% ownership. The second largest shareholder was Ningbo Guyang Investment Management Limited Partnershp with 7.01% ownership. The rest of shares (35.53%) are widely held by investors with less than 5% each.
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|-||-||-||-||Shanghai Zhonggu Logistics Co., Ltd.||Client||Industry and Trade|
|-||-||-||-||Zhonggu Shipping Group Co., Ltd.||Investor||Industry and Trade|
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Client - Shanghai Zhonggu Logistics Co., Ltd.:
Mr. LIU Yongjun - Special assistant to the Chairman
Address: 15th Floor, Building 1-B, No. 3261 Dongfang Road, Pudong New District, Shanghai, China
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