U.S.'s PAG Acquires 10% Stake in Yang Ming Marine's Subsidiary KMTC for US$0.66 Per Share

Taipei, June 21, 2012 (CENS)--The Taiwan-based Yang Ming Marine Transport Corp. announced that the U.S.'s Ports America Group (PAG) has acquired a 10% stake in its subsidiary Kao Ming Container Terminal Corp. (KMTC) for US$45 million, or US$0.66 per share, through its Ports America International Holdings Corperatief, U.A. to take part in operations of the Terminal No.6 in Kaohsiung Intercontinental Container Terminal, southern Taiwan.

KMTC is established by Yang Ming Marine to fulfill the contract signed with Kaohsiung Harbor Bureau in 2007 for the first-stage construction of the Port of Kaohsiung Intercontinental Container Terminal on a BOT (build- operate- transfer) basis, and has been officially approved to operate the Terminal No.6 for the time being.

This terminal, which has attracted a number of other foreign cargo shippers to invest in for joint operation, has four berths with total length of 1,500 meters and maximum capacity of 1.8 million TEUs, and is one of the few terminals in Kaohsiung Port that can berth the world's biggest container ships. More notable is that the terminal is equipped with high-efficiency automated container facilities, and amazingly handled 1.08 million TEUs to earn profits of NT$195 million in its first operating year.

In light of its close business ties with PAG, Yang Ming Marine hence sells a 10% stake in KMTC to the U.S. partner, which is the largest American terminal operator and stevedore and vehicle processor with operations in 42 ports and 80 terminals nationwide in the U.S. Worth mentioning is that the acquisition makes KMTC PAG's first overseas investee.

In addition to PAG, three Chinese cargo shippers have reportedly mulled setting up a joint venture to invest in the Terminal No.6, but the investment plan is still pending for the moment.