China-based Cosco Shipping Holdings Co. is considering putting a container terminal at the Port of Long Beach in a U.S.-run trust in response to concerns raised by federal regulators regarding the shipping company’s pending ownership of the facility, according to the Wall Street Journal.
The WSJ report, citing unnamed sources, said, “Cosco executives met with officials from the Committee on Foreign Investment officials last week in Washington and proposed to place the terminal in a third-party trust under U.S. management for up to a year.”
“Cosco will have no involvement or influence in the trust,” this person told the WSJ. “It also filed a number of amendments previously required by CFIUS.”
Cosco’s planned $6.3 billion takeover of Orient Overseas International Ltd. is still on track and expected to close in June. The Long Beach Terminal is part of that deal.
Manufacturing, retail and trade reporter Shwanika Narayan can be reached at email@example.com or 323-556-8351. Follow her on Twitter @shwanika.