Cosco delays $5-B investment following ZTE deal cancellation

The multi-billion dollar investment of a Chinese shipping firm has been delayed following the cancellation of the controversial broadband deal between the Philippine government and Chinese firm ZTE Corporation.

China Ocean Shipping Co. (COSCO) has committed to investing $5 billion for the development of a shipping hub which is expected to make the country a maritime power in the region.

“It has been delayed. I want to talk to him (COSCO chairman Wei Jiafu). I already sent an emissary, maybe we can arrange a meeting next month,” Ambassador Francis Chua special envoy on China trade and investments said in a telephone interview.

However, the deal, which was first made public in May, has been delayed. Chua admitted that the delay happened after the ZTE Corp. controversy erupted but said he is not sure if it is the only reason.

“I am not very sure. I want to see him hopefully in November,” Chua said.

Initially, Cosco wanted to construct a modern port at the Navy headquarters in Cavite. Its initial plans include the development of a 250-hectare land in Sangley Point where they would put up a “marine school to train maritime sailors.

There will be a repairing ships and building ships.”

“They will be using the Philippines as a hub for shipment to Europe and America, so all cargo from Asia will come to the Philippines, using the Philippines as a staging point to go to US, North America, Europe and vice versa,” Chua said.

He added that Cosco’s facility is expected to generate about 100,000 jobs, particularly for the country’s seafarers.

Founded in 1961 as the pioneer international shipping carrier in China, Cosco has grown into a $17-billion global company. It owns and operates 600 various types of ships operating in 1,300 ports in more than 160 countries and regions worldwide.