China Merchants Group to invest $550m in logistics subpark in China-Belarus Industrial Park
26 November 2015
MINSK (BelTA) – As much as $550 million will be invested in creating China Merchants Group's trade and logistics subpark in the China-Belarus Industrial Park, BelTA learned from Kirill Koroteyev, First Deputy Director General of SZAO Industrial Park Development Company, during the press conference held on 26 November to highlight progress in creating the Chinese-Belarusian industrial park Great Stone.
According to the source, the subpark will occupy 96ha, the construction project is split into phases. According to the commitments specified by the contract, the investments will total $550 million. “Today we are starting building the first phase — a territory of 25ha, with the investment volume at $145-150 million,” remarked Kirill Koroteyev.
According to the source, China Merchants Group has already invested about $20 million in the project. The money was used to finance design services, start construction work, and acquire the land. In the future the investor may develop dry port options with access to the Baltic states. China Merchants Group is negotiating purchasing a package of shares in ports of Lithuania and Latvia. Access to the sea from Belarus may become an important part of the Silk Road.
“The establishment of the subpark represents a practical step meant to involve Belarus in the Great Silk Road project. Apart from that, corridors for rapid railway or automobile transportation China-Belarus-Europe have been reserved along the M1 motorway for the future. The matter is still being worked on, including in the Transport Ministry,” said Kirill Koroteyev.
BelTA reported earlier that China Merchants Group will invest about $150 million in the subpark in 2016. By November 2016 the Chinese corporation intends to commission 100,000m2 of facilities, including 51,000m2 as indoor storage, 20,000m2 as outdoor storage, 21,000m2 as exhibition area, 6,200m2 as shopping space, 1,600m2 as office area, and 1,340m2 as auxiliary premises.
Apart from that, the Chinese corporation is ready to take part in developing Belarus' transport and logistics concept for the sake of utilizing Chinese experience as much as possible. The Chinese corporation is also eager to take part in joint projects to develop cargo transportation by air. Such projects may incentivize the development of the Minsk airport infrastructure.
China Merchants Group specializes in providing transport, logistics, and financial services and in investments in real estate. In late 2014 the corporation's assets totaled $102.9 billion, with net profit at $4.5 billion. In terms of overall profit the company ranks 10th among central subordination enterprises in China.