Germany approves CTT deal (again)

News 10 May 2023 by WCN Editorial

The German government has approved COSCO Shipping Ports Limited (CSPL) taking a 24.9% minority shareholding in Container Terminal Tollerort (CTT).

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After much speculation and debate, Germany is allowing CSP to take a stake in Container Terminal Tollerort (CTT), the smallest of the four container terminals at the Port of Hamburg. This decision was thought to have already been made, but last month it emerged that CTT had been classified as critical infrastructure and the deal needed a review from the German Economic ministry.

That process has now been concluded. “Hamburger Hafen und Logistik AG (HHLA) welcomes the decision of the German government to approve the 24.9% minority shareholding of the Chinese company COSCO Shipping Ports Limited (CSPL) in Container Terminal Tollerort (CTT). All issues within the scope of the investment screening process were clarified jointly in intensive, constructive talks,” HHLA stated.

HHLA said that the decision will see CTT expanded into a “preferred handling location” for COSCO. “China is currently Germany’s and the Port of Hamburg’s largest trading partner: around 30 percent of the goods handled in the Port of Hamburg come from China or go to China. CSPL’s minority shareholding thus secures employment and boosts Hamburg’s national and international importance as a logistics hub as well as Germany’s position as an industrialised nation. Approximately 1.35 million jobs in Germany depend on the ports. HHLA is aware of its importance when it comes to supplying companies and consumers in Germany and Europe,” HHLA said.

Limiting COSCO’s stake to 24.9% brings it below the 25% level to trigger certain merger control procedures. The 25% figure is also the amount needed to achieve a “minority blocking” stake, which can enable a minority shareholder to prevent structural changes to a company and other strategic decisions.