Photo: © Flozz
German authorities are reportedly set to block Cosco’s acquisition of Hamburg logistics outfit Konrad Zippel, following pressure from security agencies that the deal would give China too great a handle across regional maritime infrastructure.
Citing a “classified” note, German outlet Handelsblatt said the federal government was ready to act on concerns, flagged by domestic security services, that the deal formed part of a “cumulative acquisition strategy” to gain a strategic foothold at the port.
At the time of publishing neither German authorities nor representatives of Hamburg Port Authority or Zippel had responded to requests for comment from 载星, but Zippel MD Axel Plass has rejected security concerns related to the deal.
Earlier this year, Mr Plass said the Cosco deal was about “winning and retaining cargo”, not part of a Chinese plan to gain strategic control over German infrastructure, adding that under the proposals, “all jobs will be preserved”.
Under Cosco’s proposal, the state-owned Chinese shipping giant would acquire an 80% stake in Zippel, through its Dutch subsidiary Goldlead Supply Chain Development, with Mr Plass retaining 20%.
With the deal for Germany’s oldest freight forwarding company having been cleared by competition authority Bundeskartellamt, back in February, Mr Plass stressed that, from a national security perspective, Zippel has just a 1.5% market share.
The security agencies are not opposed to the deal, their concern lies in it forming part of a broader acquisition strategy, beginning with Cosco’s contentious 2023 purchase of a 24.99% stake in the Tollerot container terminal (CTT). Having initially sought a 35% stake in CTT, German authorities intervened to prevent the deal, on the grounds that giving Cosco – and, by extension, the Chinese government – a controlling stake in a Hamburg terminal would be a strategic liability.
It was only after Chancellor Olaf Scholz stepped in, that a compromise 24.99% stake was reached, although even this necessitated six months of checks and assessments by German security agencies before final sign-off.
Considered alongside its fleet of vessels and stake in Tollerot, the security agencies believe control of Zippel and its intermodal and hinterland activities would afford the Chinese state influence over a key node of German infrastructure.
The deal, however, also comes at a time when container lines are expanding their operating footprint well beyond their traditional ocean-going operations, Maersk, through APMT, boasting strong vertical integration at multiple ports around the world, for example.
Only in August did German operator Hapag-Lloyd announce its plans to acquire a 25% stake in Rotterdam’s APM Terminals Maasvlakte II, citing a desire to secure “long-term” terminal capacity in the region.