CALGARY, ALBERTA and HONG KONG, CHINA -- (Marketwired) -- 08/16/13 -- Grand Power Logistics Group Inc. ("Grand Power" or the "Corporation") (TSX VENTURE: GPW) is pleased to announce that, further to its press release dated January 14, 2010 in which it was announced that Grand Power Logistics Development Co. Ltd ("GPLD") had signed a memorandum of understanding to develop the Yangshan International Container Transit Logistics Park ("Yangshan Logistics Park"), GPLD has now signed a subsequent Assignment of Contract agreement, which gives it the "State Owned Construction Land Use Right" (awarding of the contract to purchase and develop the land).
In relation to the foregoing, a new partner, Hong Kong Shengya Technology Limited, has recently injected $12,000,000 USD into the Yangshan Logistics Park project. The purpose of these funds was to secure the deposit (or "application fee") for the Yangshan Logistics Park project. Upon this successful completion of deposit, all the necessary requirements had been met by GPLD to qualify being awarded approval for the contract to own and develop the 430 mu (70.8 acre) first phase of the 744 mu (122.5 acre) two phase project.
As a result of the injection of the fund, Grand Power's indirect ownership of the Yangshan Logistics Park project will now decrease from 36.67% to 13.2%.
The purchase cost of the land for Phase One will be approximately RMB 481.6 million (approx. $78.7 million USD). GPLD expects to source its funding through a combination of debt and/or equity funding, which may further dilute Grand Power's indirect interest in the project. Grand Power does have the option to invest its proportional share in the project phases to minimize its dilution.
A valuation report is currently being conducted to determine the completed (post construction) project value. A copy of the report will be made available as soon as it is completed.
Ricky Chiu, President and CEO of the company said "This is a very exciting development for Grand Power. We now look toward the next steps in the process, of planning out the development and infrastructure, and finding suitable operation and investment partners who can assist us in bringing this project to final completion."
About Yangshan Deep-Sea Port
Located 26 kilometers off of Shanghai's southern coast, the Yangshan Deep-Sea port project is considered very important in Shanghai's bid to become a dominant shipping logistics centre and global economic player. When the port is fully developed in 2020, it will be lined with over 50 berths capable of accommodating up to 15 million twenty foot equivalent containers. The entire project will be completed in four phases at a total estimated cost of US$12 to $18 billion. Phases 1 and 2 have already been completed, including the Donghai Bridge which, at 32.5 kilometers and six lanes, is the second longest cross Sea Bridge in the world. The goal of the Port is to ultimately become the biggest international shipping hub in the world, facilitating China's ever growing trade with an internationally competitive and state of the art facility.
About Grand Power Logistics Group Inc.
Grand Power operates principally through its wholly owned Hong Kong based subsidiary, Grand Power Express International Limited (GP Express), and provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services. GP Express has established operations in various regions, particularly in the Greater Pearl River Delta (GPRD), China's largest economic region. GP Express' Subsidiaries or Branch Offices in this region are located in Macau, Shenzhen and Guangzhou. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Beijing, Tianjin and Xiamen. For more information, please visit http://www.grandpowerlogistics.com.
Certain statements contained in this release are forward-looking statements and are based on future expectations, plans and prospects for the Corporation's business, operations and future developments that involve a number of risks and uncertainties. The Corporation's forward-looking statements in this release are made as of the date hereof, and the Corporation disclaims any duty to supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise. The Corporation is identifying certain forward-looking information regarding, among other things, the development of the Yangshan Logistics Park. Actual events or results may differ materially from those contained in these forward-looking statements. Important factors that could cause further events or results to vary from those addressed in the forward-looking statement include, without limitation, risks and uncertainties arising from the ability of GPLD to successfully raise the necessary funding to develop the Yangshan Logistics Park, to successfully obtain all necessary approvals from various regulatory bodies, uncertainties relating to the ability to realize the expected benefits of the Yanshan Logistics Park project; unanticipated or unfavorable regulatory matters; general economic conditions in the region and industry which the Corporation operates, and other risk factors as discussed in the Corporation's other filings made by the Corporation from time to time with Securities Commissions.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Grand Power Logistics
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