How do you approach managing legal aspects during periods of instability or crises, and how does your legal strategy align with the broader business strategy to ensure the organisation’s resilience? 

COSCO SHIPPING Ports Limited (the ‘Company’), engaged in the management of a global network of ports, faces intricate legal compliance challenges and risks amidst the dynamic and competitive international supply chain landscape from time to time. Under such circumstances, I have led the Legal and Compliance Division (the ‘Legal Department’) to adopt a proactive management approach in response to the legal compliance challenges and risks involved in ports operations and related services. The recent enforcement of the European Union’s regulation on foreign investment has had a significant impact on our operations, resulting in strategic adjustments last year. 

The Legal Department has fortified its holistic risk prevention system and compliance efforts. Closely monitoring regulatory changes affecting investments and mergers in EU markets and maintaining robust working relationships with local legal experts for timely risk alerts are our major developments targeting the major issues involved. 

In response to escalating geopolitical conflicts affecting maritime routes, the Legal Department has devised comprehensive response plans for specific aspects of risks in association with our operations. This involves thorough analysis of the latest and proposed national and industry-specific policies to mitigate operational disruptions and comply with market access requirements. 

My team has also actively familiarised with EU investment and merger mechanisms to ensure preemptive compliance assessments before engaging in EU transactions. 

By enhancing external legal advisory networks and facilitating cross-departmental collaboration, the Legal Department is well positioned to effectively support the Company’s long-term development strategy. Our overall approach aims to strengthen the Company’s resilience against evolving regulatory landscapes and geopolitical risks, positioning the Company to navigate uncharted waters arising from global uncertainties. 

Can you discuss a particularly challenging dispute or M&A scenario you encountered and the innovative strategies you implemented to address it?  

On 15 March 2023, the Company entered into a shareholders’ agreement with CMA Terminals and Hutchison Ports for the establishment of a joint venture aiming for the construction and operation of a container terminal in Sokhna, Egypt. The Company subscribed for 25% equity interests of the joint venture with an initial investment of USD$8,750,000. 

Throughout the transaction, the Legal Department led by me made crucial contributions to successfully balancing the complex business interests among major shipping companies and port operators. Under my guidance, the team demonstrated their expertise through strategic negotiations, intensive discussions, thorough document reviews, comprehensive merger analysis, resulting in pragmatic resolution of commercial and legal issues. The team’s efforts safeguarded the Company’s interests as a minority shareholder in the joint venture, asserting information and participation rights, and ensuring a fair allocation of business risks among all joint venture shareholders.  

Given the involvement of leading global shipping companies and port operators, the project triggered merger control requirements in eight jurisdictions, including China, the EU, and Egypt. My team efficiently handled this complex process by conducting comprehensive research on anti-monopoly laws, coordinating data collection, and ensuring accurate and compliant filings. My team also responded to rounds of queries from the antitrust authorities in a proactive manner and facilitated the reaching of consensus among all parties. The Company successfully completed all necessary pre-merger antitrust filings and obtained approvals by emphasising the project’s positive impact on fostering healthy market competition to the relevant authorities. The project was successfully completed in May 2024.