Singapore - Port operator PSA International has entered a joint venture agreement to develop Argentina's second-largest container terminal in a move aimed at obtaining a bigger slice of the trade between Asia and the Americas, the company said Tuesday. PSA has tied up with London-based International Port Holdings (IPH) to purchase a stake in Argentina's International Trade Logistics (ITL).
Details of the deal and PSA's holding were not disclosed. Analysts said PSA and IPH will together own a majority stake in the firm.
Privately-owned ITL provides logistics services and third-party distribution warehouse space as well as port services.
"We will work with our partners and the local authorities to capitalize on Argentina's expanding trade with Latin America and the rest of the world," said PSA group Chief Executive Officer Eddie Teh in a statement.
With the latest deal, PSA has 27 port projects in 16 countries. This is PSA's second investment in Latin America. The other is in Panama.
Research firm Global Insight said container trade between Central and South America and North-East and South-East Asia grew 28 per cent between 2005 and 2007.
Latin America could absorb 10 per cent of China's container exports by 2015, Global insight said.
