NYK expands automobile terminal business in China

NYK expands automobile terminal business in China    Nippon Yusen Kaisha is developing its second automobile terminal in China, under a joint venture agreement with Dalian Port Corp. Ltd. and COSCO Pacific Ltd. for the construction and operation of a dedicated terminal for completed automobiles at the port of Dalian.
   The Dalian terminal operation, tentatively named Dalian Automobile Terminal Co., Ltd., will represent an investment of about 600 million yuan (about $72 million) by its joint venture partners. Dalian Port Corp. will have a share of 40 percent in the venture, NYK will hold 30 percent and COSCO the remaining 30 percent.
   The business is scheduled to start trading in early 2006. The latest venture “will enable NYK to better meet Japanese and other automakers’ needs for multimodal transport services in wider areas of China,” the Japanese shipping group said.
   NYK said that the joint venture will have a length of operation of 50 years. Its main services will be handling car roll-on/roll-off cargoes, providing bonded warehousing services and arranging logistics services.
   In China, NYK has already invested in Shanghai International Auto Terminal Co., Ltd. and set up a car handling joint venture with COSCO, called NYKCOS Car Carrier Co., Ltd.