COSCO gives up $5-B Sangley Point project

China Ocean Shipping Co. (COSCO), the world’s second largest shipping group, has given up on its bid to undertake an integrated shipbuilding and international logistics project in Sangley Point in Cavite at an estimated cost of $5 billion, but vowed to explore other opportunities in the logistics business in the country. “Yes, we gave up our original plan,” COSCO Group president Capt. Wei Jiafu told reporters at the sidelines of the 10th World Chinese Entrepreneurship Convention held here on Friday.
Wei was a guest speaker at the convention, which was attended by over 3,000 Chinese entrepreneurs from over 22 countries.
“Two years ago we were invited by President Gloria Arroyo for a collaboration project, but for some reasons the project did not materialize,” Wei said noting that “certain areas for port development was given to other developers.”
Wei, however, refused to elaborate and said that the reason for giving up on the project has nothing to do with the controversial ZTE deal.
“We have very good bilateral relations with the Philippines,” he said.
With the Sangley Point project already in the backburner, Wei said they are exploring other business opportunities in the country.
He hinted that they may pursue other projects through its local office here. He said their interest is still in the logistics sector and shipping because that is their expertise. This could mean increasing the number of vessels calling on Philippine ports to assist exporters, he said.
“China has become world largest country in container throughputs and iron ore imports, and third largest importer for crude oil. In order to secure foreign trade and strategic goods transportation, shipping industry, nonetheless plays a vital role in Chinese social economy development,” Wei said during his speech before the Chinese delegation.