Australia Loi for Offshore Joint Venture Through Foreign Corporation

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					A SIA N T R A N S P OR T

A Quarterly newsletter of developments in the transport and logistics markets

Welcome to the Asian Logistics               professional staff throughout Asia,
                                                                                            AUSTRALIA.................... 1
Newsletter. This publication was initiated   the Middle East, Europe, and the US.
                                                                                            CHINA.......................... 1
to address the growth of opportunities       If you think that BDA’s services may
in the Asian logistics market. We hope       be useful to you, please contact us at         HONG KONG................... 2
you find the Asian Logistics Newsletter      any one of our offices or email me at          INDIA........................... 2
informative.                        Contact details         INDONESIA.................... 3
                                             for our offices are at the back of this        JAPAN.......................... 3
Business Development Asia (“BDA”) is         newsletter. We look forward to speaking
                                                                                            KOREA.......................... 3
an investment banking firm specializing      with you in the future.
in executing cross-border transactions
                                                                                            M A L AY S I A . . . . . . . . . . . . . . . . . . . . . 4
involving Asia, including acquisitions,                                                     SINGAPORE.................... 4
divestments, JVs, capital raising, and       Paul DiGiacomo, Managing Director              U N I T E D A R A B E M I R AT E S . . . 4
restructuring. We have offices and                           VIETNAM....................... 4

Australia                                    Toll Holdings Ltd, an Australian            in Canada, Hong Kong and the US, for
                                             transportation and logistics solutions      an undisclosed consideration, in an
                                             provider, has acquired Gluck Forwarding     attempt to expand its network in the
Canada Pension Plan Investment               Systems Pty Ltd, a provider of forwarding   country. June 4, 2008
Board (“CPPIB”) acquired 10% of              and warehousing services, for US$31m.
Australia’s Transurban Group, the toll       June 10, 2008                               Air France-KLM and China Southern
road developer and manager that owns                                                     AIrlines have signed a framework
two major motorways in Melbourne and         Toll Transport Pty Ltd, a subsidiary of     agreement to create a cargo JV. The
Sydney, for US$635m. The money will          Toll Holdings Ltd, has acquired Extra       two carriers are planning to operate 93
be used to develop new road portfolios.      Transport Group Pty Ltd, a provider of      flights a week from Spring of 2010, from
CPPIB partnered with Transurban and          transportation and logistics services,      Guangzhou, Shanghai and Tianjin. The
Goldman Sachs Group Inc in their             from Peter Ferrari for US$43m. July 9,      JV will be completed by the end of 2008.
unsuccessful bid for the Pennsylvania        2008                                        June 2, 2008
turnpike toll road this year. June 19,
2008                                                                                     Fraport AG, the operator of Frankfurt
                                             China                                       Airport in Germany, launched a JV with
DHL Express and New Zealand Post Ltd                                                     China’s Xi’an Internation Airport Co to
will form a A$200m (US$161m) 50:50           Agility Logistics, the Kuwait logistics     build a new company that will operate
courier business JV in Australia under       firm, has agreed to acquire Cosa Freight,   Xi’an Xianyang International Airport.
the name Express Couriers Australia Pty      an ocean freight forwarder with six         Fraport AG will focus on establishing
Ltd. June 30, 2008                           offices across China as well as locations   more international air routes, as well
ASIAN TRANSPORT AND LOGISTICS NEWSLETTER                                                                 SEPTEMBER 2008, ISSUE 56

as developing retail and real estate             areas of customs clearance, heavy            Hong Kong
businesses at the airport. Fraport AG            oversized cargo handling and inland
will own 24% of the JV. The transaction          transportation services. July 2, 2008
amount was not disclosed. September                                                           Grand Power Logistics Group Inc is
17, 2008                                         Tianjin Port Co, a Chinese port operator,    growing in the Chinese logistics sector
                                                 has entered into an agreement with           and has announced two deals. The
ProLogis Inc, one of the world’s                 CMA CGM Group, a container operator          first agreement is an LOI with local
largest industrial distribution property         and Hong Kong’s Asia International           government in Shanghai to acquire
developers, and Guangzhou Nansha                 Shipping to build and operate a              the land use rights for 100,000 m2 of
International Logistics Co will set up           container terminal in the port of Tianjin.   development property at Shanghai
a JV engaged in the development of               The JV, with a 50-year operating period,     Pudong International Airport to build
the Guangzhou Nansha International               will be jointly invested by Tianjin          and operate bonded and non-bonded
Logistics Park. The development                  Port (60%),CMA CGM (20%) and Asia            warehouse and logistics facilities. The
will be supported by the Guangzhou               International Shipping (20%) and             second agreement is an MOU with an
Municipal Government. July 21, 2008              will be operational in 2011. The total       undisclosed industrial property group
                                                 registered capital is US$220m. August        to form a JV for the finance, construction
Rizhao Port Co, a Chinese bulk cargo             25, 2008                                     and operation of the facilities. August
warehousing and shipping company,                                                             18, 2008
has acquired 64% of Lanshan                      VOTG Tanktainer, the tank container
Wansheng, an iron ore transportation             logistics unit of VTG Aktiengesellschaft,    Temasek Holding Pte Ltd, a Singaporean
company for an undisclosed amount.               has signed an agreement with Vopak           firm, has agreed to pay US$500m for 5%
Lanshan Wansheng reported net profit             North China, a subsidiary of tank            of Li & Fung Ltd. Li & Fung is an export
of US$11m in 2007. July 14, 2008                 terminal operator Royal Vopak, to            trading firm that manages the supply
                                                 acquire Vopak’s 50% stake in Cosco-          chain for major brands and retailers.
Sinotrans Group, China’s largest                 Vopak Logistics Co, a chemical logistics     September 7, 2008
logistics service provider, and China            services JV in China. July 2, 2008
Yangtze Transportation Group, the
country’s largest river transport firm,          Mainland China saw a high level of           India
have agreed to a merger which will               merger activity in the logistics industry
create the second-largest shipping and           from 2006 through Q1 2008 but with
logistics firm by assets in China after          less involvement of foreign capital. In      DP World Ltd, the global ports operator,
Cosco Group. July 22, 2008                       2006, there were 15 mergers of over          has agreed to acquire a 25% stake in
                                                 US$50m, with a total transaction value       Chennai Container Terminal Pvt Ltd,
S i n o t ra ns G ro u p h a s s i g n e d a n   of US$9.4bn, in 2007 there were 20           a Chettinad Logistics Pvt Ltd (Jakari
agreement to operate a JV logistics              deals worth US$4.1bn and in Q1 2008          Group) company. The size of the
company in Saudi Arabia in partnership           there were four deals worth US$700m.         transaction was not disclosed. May 30,
with the local Almajdouie Group.                 Foreign capital participated in 40%          2008
Established in 1965, Almajdouie Group            of the mergers in 2006, 38% in 2007
is engaged in supply chain management            and 33% in Q1 2008. Totally domestic         Greatship Ltd, an offshore oilfield
and third party logistics services. The          mergers rose from 2% to 62% in 2007          services provider and subsidiary of GE
joint company, Almajdouie Sinotrans              and to 67% during Q1 2008.                   Shipping Company Ltd, has announced
Middle East, will operate in the                 May 27, 2008                                 a new JV with Norway-based DOF Subsea
ASIAN TRANSPORT AND LOGISTICS NEWSLETTER                                                            SEPTEMBER 2008, ISSUE 56

ASA, a supplier of subsea services.                Shipping Corp of India (“SCI”) is         a US$720m railway project in South
The newly formed venture will be                   hoping to revive its recently proposed    Sumatra. PTBA will own 30% stake
known as Greatship DOF Subsea Pvt                  JV with Oil and Natural Gas Corp          while the rest will be owned by PT
Ltd. The JV will focus on subsea                   (“ONGC”). In March 2006, SCI and          Kereta Api. The transaction amount
project opportunities in the Indian                ONGC signed a float document with         has not yet been disclosed. September
subcontinent. The transaction amount               PSA Marine that would provide repair      18, 2008
was not disclosed. September 8, 2008               services to each of the firms’ vessels.
                                                   The one year float document expired
G rea t O f fs h o re L td, a n o f f s h o r e    and PSA Marine withdrew from the          Japan
oil service provider, has acquired                 original JV agreement. SCI is in search
two maritime services companies,                   of a third JV partner, offering the new   Japan Post Holdings Co and Nippon
Rajamahendri Shipping & Oilfield                   partner a 21% shared equity in the        Express Co will own 66% and 34%,
Services Ltd and KEI-RSOS Maritime                 firm. The transaction amount was not      respectively, of a new parcel delivery
Ltd, for US$36.5m in a move to bolster             disclosed. September 1, 2008              JV. The current 50:50 JV, JP Express Co,
its port management and offshore                                                             was set up in Tokyo in June 2008 to
logistics. September 2, 2008                       Steel Authority of India (“SAIL”)         prepare for the integration of the two
                                                   signed an MOU with Shipping Corp of       companies’ parcel delivery operations
IDFC Private Equity Fund II, a venture             India to promote a JV that will provide   on 1 April 2009. The JV will also launch
fund of Infrastructure Development                 various shipping-related services to      a new brand to replace Japan Post’s
Finance Corp, has acquired 22% of                  SAIL to import coking coal. The JV may    Yu-Pack and Nippon Express’ Pelican
Hyderabadi-based Seaways Shipping                  also participate in the world-wide dry    brands. August 28, 2008
Ltd, a leading Indian maritime operator,           bulk shipping trade. July 1, 2008
for US$28m. June 10, 2008                                                                    Vopak NV, the Dutch tank terminal
                                                   Private equity and venture capital        company servicing the chemical and oil
Indian Railways, the state-owned                   investors are preparing funds in excess   industries, will acquire two terminals in
Indian railway company, is in talks                of US$2bn to invest in India’s maritime   Japan through Nippon Vopak, its JV with
with companies such as Siemens                     infrastructure and logistics, as the      Nippon Express Co and Nagase & Co in
and Bombardier Inc to form a JV to                 country strengthens cargo handling        which it has 40% ownership. Nippon
manufacture stainless steel railway                facilities to meet rising trade. 95% of   Vopak will acquire 100% of both the
wagons and coaches. India Railways                 India’s external trade by volume and      Nagoya and Moji Tank terminals which
plans to invest US$430m per annum,                 70% by value is transported by sea.       are involved in the importation of
and will retain a 26% stake in the JV.             June 27, 2008                             chemical and oil products by container
September 16, 2008                                                                           vessels as well as storage and loading
                                                                                             for outgoing ships. August 1, 2008
K h a l e e j i Co m m e r c i a l B a n k h a s   Indonesia
launched Global Logistix Navi Mumbai
Investment Co with a target capital                                                          Korea
of US$430m. The fund will aid in the               Indonesian coal-mining company PT
development of India’s first integrated            Tambang Batbara Bukit Asam (“PTBA”)
logistics city project on a 400 acre site          and railway company PT Kereta Api,        United Parcel Service (“UPS”) has
in Navi Mumbai, Maharashtra.                       both state-owned, plan to establish a     agreed to purchase the remaining of
 July 16, 2008                                     JV that will handle the construction of   shares of UPS Korea Express, its JV with
ASIAN TRANSPORT AND LOGISTICS NEWSLETTER                                                                            SEPTEMBER 2008, ISSUE 56

The Korea Express Co. The shares were                    Partners. The transaction is an MBO                 terminal, port, transport operations
bought for an undisclosed amount.                        backed by the Bahraini bank. August                 and longstanding links with various
June 18, 2008                                            18, 2008                                            shipping lines. July 21, 2008

                                                         Arcapita Bank acquired UK-based                     Topaz Energy & Marine Ltd, an Emirati
Malaysia                                                 road, rail and bulk service provider,               oil and gas services company, acquired
                                                         Freightliner Group Ltd, for US$364m.                Doha Marine Services, a Qatari marine
MMC Corporation Bhd (“MMC”) will                         Arcapita acquired the business from                 company, for US$124m. May 3, 2008
acquire the entire stake in Senai                        Electra Partners LLP, 3i Group Plc, and
Airport Terminal Services Sdn Bhd                        Freightliner management. June 13, 2008
(“SATS”) and make a voluntary general                                                                        Vietnam
offer for Aliran Ihsan Resources Bhd                     D P Wo r l d L t d , t h e g l o b a l p o r t s
(“AIR”) to accelerate the group’s                        operator, has acquired 60% of Spanish               China Merchant Holdings, the
international expansion drive in the                     Contarsa Sociedad de Estiba SA for an               largest container terminal operator
logistics and utilities businesses.                      undisclosed amount, continuing DP                   by volume in Shenzhen, has formed
MMC will acquire SATS for US$577m in                     World’s global expansion. Contarsa                  a US$60m 49:51 JV with Vietnam
an all-share deal and AIR for US$71m                     Sociedad de Estiba is a marine cargo                National Shipping Lines Corp. The
in cash. August 4, 2008                                  handling company. June 17, 2008                     new venture will construct the Ben
                                                                                                             Dinh Sao Mai Deep Seaport in Vietnam.
                                                         Etizen Maritime Ser vices ASA, a                    The new agreement is part of a larger
Singapore                                                Norwegian ship manager and service                  development agreement signed in
                                                         provider, acquired Seven Seas                       April 2007 between China Merchant
                                                         Shipchandlers, the Dubai-based                      and Vietnamese authorities, involving
Redmount Holdings of Indonesia, a                        maritime maintenance, repairs and                   cooperation in areas including
special purpose vehicle owned by                         operations provider, for US$115m. May               shipbuilding and road infrastructure
Mr. Utaryo Suwanto, Mr. Eka Sinto                        9, 2008                                             developments. China Merchant intends
Kasih Tija, Mr. Rudy Lim and Precious                                                                        to make other investments in Vietnam.
Treasure Global Inc, has acquired                        K i n g d o m H o l d i n g Co , t h e S a u d i    September 9, 2008
RichLand Group Ltd, a Singaporean                        i n v e s t m e n t co m p a n y, a g r e e d t o
logistics ser vices company, from                        purchase Abraaj Capital Holdings                    Sankyu Inc, the Japanese transportation
Broyland Capital Private Ltd for                         Ltd’s stake in an executive air transport           firm, has opened a new logistics center
US$31m. May 30, 2008                                     service, National Air Services Ltd.                 through its subsidiary Sankyu Logistics
                                                         Kingdom Holding paid US$311.1m to                   Vietnam, in Haiduong Province in
                                                         increase its stake from 7% to 37%.                  northern Vietnam. The center, Sankyu
United Arab Emirates                                     June 17, 2008                                       Logistics Vietnam Freight Center, is
                                                                                                             located in the Tan Truong Industrial
                                                         Sharjah’s Gulftainer Co announced a JV              Zone between Hanoi and Haiphong and
Arcapita Bank of Bahrain has acquired                    with Turkey’s Demas International. The              has total floor space of 13,000 sq. ft.
Compagnie Europeenne de Prestations                      new company will focus on transport                 September 8, 2008
L o g i s t i q u e s , a F r e n ch l o g i s t i c s   a n d l o g is t i cs co m bi n i ng De mas ’
company, for a cash consideration of                     Turkish expertise in logistics, trucking            Vietnam National Shipping Lines
US$735m from Sagard Private Equity                       and warehousing with Gulftainer’s                   (“Vinalines”) and the China Merchants
ASIAN TRANSPORT AND LOGISTICS NEWSLETTER                                                      SEPTEMBER 2008, ISSUE 56

Group Ltd established a JV to operate a
container port which will cover an area
of 166 acres and will be built in Ba Ria-
Vung Tau, at a cost of US$300m. The
JV partners plan to start construction
in 2009 and finish in 2011. September
16, 2008

To submit stories to future editions of this
newsletter, please contact Paul DiGiacomo
in Hong Kong on (852) 2537-9565 or email

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