COSCO Shipping Ports, China's state-owned global port operator, is acquiring stakes in two of the terminal operations in Thailand's leading port, reports Fort Lauderdale's Maritime Executive.

Laem Chabang Port is Thailand's largest port accounting for 80 per cent of the country's container throughput.

The move is a critical step for the company to expand its reach into Southeast Asia and support's China effort to increase its influence in the region.

Started in the early 1990s, Laem Chabang Port is 80 miles from Bangkok and close to the country's major industrial and manufacturing hubs including Rayong.

Cosco will now acquire 12.5 per cent of Thai Laemchabang Terminal (TLT) and 30 per cent of Hutchison Laemchabang Terminal (HLT) both in the port of Laem Chabang and controlled by Hutchison.

The company has been operating TLT since 2002 and began driving expansion in the region with HLT which was started in 2006.

Expansion of the operations is ongoing adding additional berths and capacity. Cosco reports it will gain access to seven berths in the port. Once the current expansion is operational, the total annual capacity is expected to reach 6.7 million TEU.

Cosco is spending $110 million for the stakes in the two terminals as well as a share in the Port of Sokhna at the northern end of the Red Sea in Egypt on the route to the Suez Canal.

Cosco cites the excellent connectivity of Laem Chabang Port to global trade routes, saying that it makes it "an ideal gateway for international shipping."

China has long been seeking a foothold in Thailand to support its efforts to expand trade in Southeast Asia. Cosco points to Thailand's Eastern Economic Corridor initiative, which it says will further strengthen the long-term growth and prospects of Laem Chabang Port and the surrounding area.

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