BERLIN/HAMBURG (dpa-AFX) - Chinese state-owned Cosco can now take a nearly 25 percent stake in a container terminal owned by Hamburg port operator HHLA after months of wrangling. The German government has decided to release the minority stake held by Chinese company Cosco Shipping Ports Limited (CSPL) in Container Terminal Tollerort (CTT), Hamburger Hafen und Logistik AG (HHLA) announced Wednesday.

"All issues within the scope of the investment review process were jointly clarified in intensive, constructive talks," HHLA stressed. The federal government said it confirmed in a letter Wednesday "that the revised purchase agreements are in line with the conditions of the partial ban."

Now HHLA would be able to develop the terminal into a preferred handling point for long-time HHLA customer Cosco, where cargo flows between Asia and Europe would be concentrated, HHLA said. According to HHLA, China is currently Germany's and the Port of Hamburg's largest trading partner. Around 30 percent of the goods handled in the Port of Hamburg come from China or go there, it said.

CSPL's minority shareholding thus secures employment and strengthens Hamburg's national and international importance as a logistics location as well as Germany as an industrial nation. A total of around 1.35 million jobs in Germany depended on the ports.

Cosco originally wanted to take over 35 percent of the operating company of Container Terminal Tollerort GmbH. However, a fierce political dispute had erupted in the German government over whether to allow Chinese participation. Last October, the cabinet decided on a so-called partial prohibition, which only allows Cosco to acquire a stake of less than 25 percent. Any further acquisition above this threshold was prohibited.

Chancellor Olaf Scholz (SPD) had spoken out in favor of the acquisition. However, there had been fierce headwind within the German government. The Foreign Ministry and other departments had expressed serious reservations about the cabinet's decision. The acquisition would disproportionately expand China's strategic influence on German and European transport infrastructure as well as Germany's dependence on China, it said in a protocol statement at the end of October.

The German government stressed that HHLA Container Terminal Tollerort is now considered an operator of critical infrastructure in accordance with legal requirements. The cabinet decision from late October remains in place, it said. "The partial ban from autumn 2022 thus remains legally valid."/klm/DP/stw