Germany has blocked COSCO Shipping's 80% purchase of Konrad Zippel Transport Company in Hamburg due to security and strategic concerns. This action was approved by the German federal cabinet on Wednesday, and the country's Ministry of Economy stated that this deal could deepen strategic dependencies and harm the stability of Germany's and the European Union's supply chains.
Details of the Deal and Security Concerns
Zippel Company is particularly active in the transportation of container shipments, transferring cargoes arriving at the ports of Hamburg and Bremerhaven to industrial centers in eastern Germany and neighboring markets. While COSCO had received approval from the German Federal Competition Authority in February and no competition concerns were observed, a separate review regarding foreign investment addressed security and strategic issues. German intelligence officials have expressed concerns about this deal.
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Economic and Political Consequences
Zippel Company manages between 35% to 90% of the container volume at inland terminals in Berlin, Schkopau, and Elsterwerda, and also plays a role in logistical support for the German armed forces. Government officials have warned that control over such infrastructure could create dependencies that could be used as leverage during political crises.
This decision reflects a tougher stance from Berlin, which has emerged after long-standing disputes over COSCO's investment in the Tollerort container terminal in Hamburg. COSCO initially sought to acquire 35% of this terminal operator but ultimately received approval for only 24.99% after the German government intervened in 2022 due to security concerns.
The recent ban comes as Germany is preparing a new bill to review investments aimed at increasing Berlin's power to oversee purchases related to infrastructure and strategic technologies.
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