Overview

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The Group's port development and operations expertise stems from its flagship company in Hong Kong, where Hongkong International Terminals (HIT) is the world's busiest independently owned container terminal operator.

HIT's container terminal operations were established in 1969 by the Hongkong and Whampoa Dock Company (HWD) - Hong Kong's first registered limited company with roots dating back to the mid-19th century. A major ship construction and repair company for over a century, HWD diversified into cargo handling and then container operations in the 1960s.

HWD merged with Hutchison International in 1977 to become Hutchison Whampoa Limited.

In 1991, the Group acquired the United Kingdom's busiest port, the Port of Felixstowe. Reflecting the Group's global expansion and internationalisation, Hutchison Port Holdings (HPH) was formally set up in 1994 to hold and manage the Group's ports and related services worldwide. Since 1994, HPH has expanded globally to strategic locations in 19 countries throughout Asia, the Middle East, Africa, Europe and the Americas. Today, HPH operates a total of 219 berths in 39 ports along with a number of transportation related service companies. In 2004, HPH handled 47.8 million TEUs.

The HWL Group also has an interest in Hongkong United Dockyards Company Limited (HUD) and Hongkong Salvage & Towage (HKST).

HPH makes port investment in Egypt

[12 March 2005 - Hong Kong] - Hutchison Port Holdings (HPH) is pleased to announce that it has entered into agreements with a consortium led by the Alexandria Port Authority for the construction, operation, and management of two terminals at Alexandria Port and El Dekheila Port, Egypt.

As part of the agreements, Alexandria International Container Terminals, a new joint venture company is being established between HPH and the consortium, will develop these general cargo terminals into modern container handling facilities.

Admiral Mohamed Youssef, Chairman of Alexandria Port Authority, said, "Due to Egypt's political and economic stability, the Egyptian Government's policy to attract foreign direct investment by partnering with multinational companies will contribute to the growing economy of Egypt. We have full confidence that this partnership with HPH will be a success. The terminals will benefit from the transfer of best terminal management expertise and best practices. This is a good start to create the necessary port infrastructure to handle the country's growing trade."

Commenting on the investment, John Meredith, Group Managing Director of HPH said, "HPH is pleased to see the Egyptian Government's commitment to the modernization of port facilities, which is timely with the growing international maritime trade. The terminals are well-positioned to capture cargoes generated from the hinterland. The development will enhance Alexandria Port's role as the centre of trade in the Mediterranean Sea. HPH's global network will be further strengthened with our presence in the region."

The two terminals will be converted with a depth alongside of 12 metres and quay lengths of 380 metres and 560 metres in Alexandria Port and El Dekheila Port, respectively.

Hutchison gets nod for Yantian project
Russell Barling
29 April 2005
South China Morning Post

China's state planners have approved a 12 billion yuan expansion of Hutchison's Yantian International Container Terminals, the busiest terminal complex at South China's port of Shenzhen.

The project will add six deep-sea berths and put more pressure on the higher-cost port of Hong Kong, where growth has stagnated in the first three months.

Yantian International, which is operating at 70 per cent capacity according to sources at the port, will start building the first berth by the end of the year as the constant stream of manufactured exports through Shenzhen shows no signs of letting up.

"If the market continues the way it is, we should probably start construction by the end of the year," a Hutchison port executive said on condition of anonymity.

"Once we get the green light, we can build a 350-metre berth every six months."

Yantian handled 1.58 million 20-foot equivalent units (teu) in the first quarter, up 21 per cent year on year.

Construction of the first 600-metre berth - much larger than the standard size for even the biggest deep-sea vessels - would be completed by September next year and reclamation for it had already started, a source at the port said.

The 12 billion yuan price tag for the greenfield project is bound to raise a few eyebrows in South China; the benchmark price for construction of a terminal is about 500 million yuan per berth.

It is thought the price of Yantian's extension was inflated by the projected cost of extensive reclamation and the 30 super post-Panamax-sized quay cranes it has slated for the facility.

Hutchison Port Holdings spokesman Anthony Tam confirmed Beijing's approval yesterday but declined to verify any details.

Hutchison Port, the world's largest container terminal operator, has an effective 42.5 per cent stake in Yantian's Phase III.

Hutchison rival Modern Terminals on Tuesday confirmed the National Development and Reform Commission - the country's state planners - had approved the first five-berth phase of its massive Dachan Bay project, just northwest of Yantian on the Pearl River.

The approvals were thought to have been linked as authorities aimed to encourage competitive pricing by discouraging the emergence of a dominant player.

Hutchison said the commission had also approved an expansion of its underutilised facility at Gaolan, on the west side of the delta.

"We are now looking to accelerate Gaolan's development with the introduction of more international line-haul services," Hutchison Whampoa managing director Canning Fok Kin-ning said.

Hutchinson Port holding is expected this week to sign an investment agreement in Lomonosov
26 April 2005
The St. Petersburg Times (Russia)

Hong Kong-based Hutchinson Port holding is expected this week to sign an investment agreement to build a $300 million commercial port in the town of Lomonosov.

The port, planned to ease the congestion of shipping containers at northwest cargo terminals, will handle 1 million teu (twenty foot container units) a year, reports news agency Nevastroika.ru.

The deal with Hutchinson will be struck by St. Petersburg-based Yantar, a management company founded for the purpose of realizing the project. Hutchinson Port is a port division of Hutchinson Wampoa holding. The company counted $504 million in pre-tax profits in 2004.

"Talks with the Chinese company have been initiated by and conducted under guidance of St. Petersburg city administration," the director of Yantar, Yuri Tkatch, said last week to Nevastroika.ru.

"At present the construction work has not started, but we have made geological assessment and got all the necessary documents approved," he said.

Tkatch added that top managers from Hutchinson's Rotterdam office have already met with the city governor and received approval for the deal.

The project will require considerable investment. "Up to $300 million will be needed to complete all three stages of the project," an analyst from sea and port construction institute LenmorNIIproyekt said to news agency tra.ru.

"The first stage will be completed in about a year and a half. The second and third stages - in three to four years," the analyst said.

Preparatory work at the construction site could begin as early as this week, immediately following the signing of the agreement, Tkatch said.

Jilles Francony, financial controller at Pandamp;O Nedlloyd, an international shipping company operating in the northwest, said the port project would be welcome news for the transportation industry.

"The Lomonosov project will bring more competition [between ports] and competition on container shipment market is always good; it results in better service for clients," Francony said.

The Lomonosov port project is part of general concept developed in 1998 by the Ministry of Transportation for the city.

It was also one of three projects the Chinese government named last year as of major interest for investment in Russia, business daily Kommersant reported.

Hutchison eyes $300m Russian terminal project
Capacity of port would be 600,000 teu, writes Lyuba Pronina in Moscow
4 May 2005
Lloyd's List

HUTCHISON Port Holdings is in negotiations with a St Petersburg company to invest up to $300m in building a container terminal port in the Russian town of Lomonosov.

“We are in the process of negotiation with Hutchison,” said Yuri Tkach, general director of Yantar. “There are few issues that remain to be cleared before the final decision is taken.”

ZAO Yantar is a company set up in 2001 by a group of private Russian companies and individuals to specifically develop this project.

The company holds a 49-year lease for a shore strip of 3.4 ha at Lomonosov, 35 km west of St Petersburg.

Under the plan approved by the local authorities the first stage of construction will allow capacity of up to 100,000 teu and will take up to two years to complete.

The final capacity of the port will reach 600,000 teu, which will help to ease congestion at existing cargo terminals. This will take between three and four years.

Mr Tkach said a memorandum of understanding was signed with Hutchison in August last year.

“Hutchison are prepared to put up to 100% of investment in exchange for a controlling stake in the port,” he added.

He said negotiations are complicated, with the main stumbling block the question of who would finance the infrastructure leading to the port, the foreign investor or the city.

The required infrastructure includes construction of an 10 km road towards the port that needs $3m investment.

So far foreign investors have not been prepared to finance the infrastructure.

Mr Tkach said that London managers were expected in town later this month to negotiate an investment agreement with the local administration.

He would not put a time frame on the conclusion of negotiations with Hutchison.

But Mr Tkach said that Yantar domestic shareholders were prepared to start financing the project already and would being construction works in May.

“There are domestic cargo operators that are very interested in this port,” he said, but refused to name them.

Hutchison Port Holdings spokesman Anthony Tam refused to comment on the development.

For HPH, the acquisition of a Russian facility would augment its Baltic presence, the company having just bought into Poland.

Modern Terminals Wins Approval to Build Docks in Shenzhen
12 May 2005

SHENZHEN, May 12, SinoCast -- Modern Terminals Ltd. of Hong Kong has lately won regulatory approval to form a joint venture to work on the phase I of the Dachanwan Container Dock Project in Shenzhen, Guangdong, Southern China, along with Shenzhen Municipal Government.

It was just now approved, and it will have five docks and both sides will pour CNY 7 billion to build them in Shenzhen, a port city near Hong Kong, told reporters on May 8 an official from the National Development and Reform Commission of China, the nation's macro-economy regulator under the State Council, the nation's cabinet.

The venture is being established and named Shenzhen Port Dachanwan Modern Dock Development Co., Ltd. (transliterated), disclosed another official from the Shenzhen Development and Reform Bureau.

The new company will hit registered capital of nearly CNY 2 billion. Modern Terminals under the aegis of The Wharf (Holdings) Ltd. (SEHK: 0004) will inject CNY 1.2 billion to CNY 1.3 billion, owning a 65% stake in it, and Shenzhen Municipal Government 35%, said the official.

The first five docks are expected to start building at the end of 2005, added the official.

The Dachanwan Container Dock Project will consist of a total of 20 docks with four-phase construction plans, which are scheduled for completion by the end of 2007. After the completion, it is predicted to reach a container throughput of 10 million TEUs in the end, as much as the Shenzhen Port's current throughput. Meanwhile, the port will encompass big three dock areas such as the Yantian Port, the Chiwan-Mawan Complex Port, and the Dachanwan Dock.

The relationship between the Shenzhen Port and the Hong Kong Port is complementary more than competitive, pointed out the Shenzhen official. Because of higher transport costs of the latter, those low value-added companies of garments and toys can choose the former in a bid to reduce their logistics costs.

Compared with the Shenzhen Port, the Hong Kong Port features thick routes, quality services, and short-time cargo handling. Hence, those high value-added prefer the latter to the former. In addition, Hong Kong is both a free port and a shipping hub in the world with advantage in tax and cargo clearance.

In the future ten years, any new docks will not be built in Hong Kong. Obviously there is strong demand for docks. To build new docks and supporting facilities nearby has become necessary. Besides, rival Kaohsiung Port of Taiwan and Busan Port of South Korea are growing at speed, and they are likely to weaken the position of Hong Kong and blunt its edge in Asia as a global shipping hub.

Founded in 1969, Modern Terminals has grown into a leading container terminal operator in Hong Kong. It is a privately owned company with a shareholder portfolio of regional industry leaders: Wharf (Holdings) (55%); China Merchants Holdings (International) Co., Ltd. (22%); Swire Pacific Ltd. (18%); and Jebsen Securities Ltd. (5%).

Wharf (Holdings) was established in 1886 and was known originally as The Hongkong & Kowloon Wharf and Godown Co., Ltd. It is listed on the Stock Exchange of Hong Kong. In 1986, the company was renamed The Wharf (Holdings) Ltd.

(USD 1 = CNY 8.28)

Hutchison Whampoa, COSCO Pacific shortlisted for Shanghai port project - report

HONG KONG (AFX) - Hutchison Whampoa and COSCO Pacific have been shortlisted for the right to invest in the next phase of the Shanghai port project, estimated at some 5 bln yuan, The Standard reported, citing an official of the port developer.

Gu Gang, director of port developer Shanghai Tongsheng Investment (Group), said the list of potential investors has been cut from more than 20 to a short list which includes Hutchison Whampoa and COSCO Pacific.

Also among the shortlisted candidates for the project is a joint venture between Wharf (Holdings) unit Modern Terminals and the China Shipping Group.

(1 usd = 8.3 yuan)

HK's Hutchison Whampoa agrees to buy 75 mln usd China COSCO IPO shares
13 June 2005

HONG KONG (AFX) - Hutchison Whampoa Ltd said it has agreed to buy 75 mln usd worth of new H shares in China COSCO Holdings Co Ltd, which is expected to list on the Stock Exchange of Hong Kong's main board this month.

The purchase will give Hutchison a 3-4 pct stake in the Chinese shipping company, assuming the over-allotment option of its share sale is not exercised, the company said in a statement.

It said it placed its subscription to the shares through its indirectly wholly-owned investment units, Rhine Office Investments Ltd and Vember Lord Ltd.

The company said it is buying a stake in COSCO because it is consistent with one of Hutchison's core businesses. Hutchison's main operations include ports and related services, property and hotel, retail and manufacturing, energy and infrastructure, and telecommunications.

China COSCO, the newly-created shipping arm of conglomerate China Ocean Shipping (Group), is engaged in the provision of a wide range of container shipping, container terminal, container leasing and freight forwarding services.

The shipping firm seeks to raise a maximum of 12.9 bln hkd from its initial shares sale in Hong Kong. The company reportedly plans to sell its shares at between 4.25 hkd and 5.75 hkd a share.

(1 usd = 7.8 hkd)

Hutchison Whampoa Shedding HK Port Stake
Sun Jun 12, 7:27 PM ET

HONG KONG (AP) - Conglomerate Hutchison Whampoa Ltd. is selling its stake in Hong Kong's port operations to Singapore's PSA International Ltd. for $925 million cash.

The company, controlled by billionaire tycoon Li Ka-shing, is shedding its 20 percent stake in Hongkong International Terminals and a 10 percent stake in COSCO-HIT, a joint venture with COSCO Pacific Ltd. that runs the No. 8 terminal in Hong Kong's Kwai Chung port. Hutchison still owns significant stakes in both companies.

It will use net proceeds from the sale, which is expected to be completed on or before June 22, for general corporate purposes.

"We are happy that this transaction will create a strong alliance in the Group's port operations, and will put us in a position to have strategic cooperation resulting in further value creation for all parties," Hutchison Group Managing Director Canning Fok said in a statement.

John Meredith, Group Managing Director of Hutchison Port Holding Ltd., Hutchison Whampoa's port arm, added that the strategic alliance will make Hutchison International Terminals and COSCO-HIT even stronger players in the highly competitive container terminal market.

Hutchison is one of the world's largest private port operators, operating 39 ports in 19 countries. In Hong Kong, Hongkong International Terminals operates container terminals No. 4, 6, 7, 9 and No. 8 through COSCO-HIT.

For the first half of 2005, Hutchison is expected to book a $1.2 billion profit from the completion of acquisition of stakes its third-generation unit in the United Kingdom from KPN Mobile N.V. and NTT DoCoMo Inc. The profit is a result of the elimination of liability on its balance sheet for DoCoMo's and KPN's minority interests in Hutchison 3G UK Holdings.

PSA, which already has stakes in two container terminals in Hong Kong, has interests in 18 projects in 11 countries, including the world's second biggest container port in Singapore. It is owned by the Singapore government's investment arm Temasek Holdings.

China Merchants and HPH win accolade
Bank’s assessment includes a ‘sell’ for Cosco Pacific, writes Sam Chambers in Hong Kong
8 July 2005
Lloyd's List

THE latest Hong Kong-listed, China-focused port operator roundup by investment bank Merrill Lynch gives a solid thumbs-up to both China Merchants Holdings and Hutchison Port Holdings while stressing a “sell” for the depleted Cosco Pacific.

Analysts David Cui and Kathy Wang reiterated their assessment to buy into CMH, claiming it “runs some of the best container port networks in China”.

“We prefer its more hands-on operating model to Cosco Pacific’s more passive business model,” the report added.

Furthermore, the recent 30% acquisition of Shanghai International Port Group was a definite plus, being Merrill Lynch’s “most favoured market in China”.

Further bolstering CMH’s attractiveness, the bank suggested it was trading at 20% below its net asset value of HK$18.70. The bank estimates that CMH will hit a net profit of HK$2.23bn (US$286m) this year, up from HK$2.06bn.

Meanwhile, for HPH, Merrill Lynch is skipping the soon-to-be-announced Phase II Yantian announcement and concentrating on the third phase as central to the world’s largest terminal operator’s growth aspirations.

Phase two of the megaport near Shanghai is likely to be announced this year, but at four berths it is small compared with the third offering likely to be announced in two years.

The bank maintained that the sale of the 20% stake of HPH’s flagship original facility, Hongkong International Terminals, to PSA International “will have a posi- tive strategic implication for Hutchison”.

“Not only do we believe that it was a good move for Hutchison to crystallise part of its asset value, it also helps to consolidate the competitive landscape of the Hong Kong port sector,” it saod.

“Rather than having PSA as a potential competitor, it would become a strong alliance partner of Hutchison.”

Another area singled out for likely HPH growth was the Middle East, principally Iran, Yemen and Turkey.

Cosco Pacific, on the other hand, was hit hard by Merrill Lynch with a reiteration of “sell” for its hands-off approach as well its valuation not being “attractive”.

“Nansha Phase II [near Guangzhou] represents its first serious attempt ot manage a port, but success in this venture remains uncertain,” the report said. Furthermore, Cosco Pacific’s portfolio was too strongly centred round the south and north of China, while Merrill Lynch said it remained most bullish about the prospects of the central Yangtze river delta.

Finally, the bank noted the recent listing of China Cosco Holdings “may give investors a cheaper way to access CPL’s earnings system”.

Hutchison Port Holdings Group And Shanghai International Port Group Enter Joint Venture Agreement
18 July 2005
Reuters

Hutchison Whampoa Ltd. announced that its Subsidiary, Hutchison Port Holdings Group and Shanghai International Port Group have entered into an agreement to form a joint venture to invest a container terminal at Shanghai Waigaoqiao Phase V (WGQ Phase V). The newly formed company, Shanghai Mingdong Container Terminals Limited, is a new joint venture between Shanghai International Port Group and Hutchison Ports Waigaoqiao Limited, a subsidiary of the Hutchison Port Holdings Group, with 50-50-shareholding arrangement.

Hutchison gets Huizhou CNOOC port construction project
11 August 2005

Hutchison Whampoa and the Huizhou city government have reached an agreement to build two terminals to ease traffic demand. According to Commercial Daily News, Hutchison Whampoa will start building the two ports, each with a handling capacity of 50,000 tons of cargo, as early as 2005. The two ports are due to operate in 2007.

The Huizhou city government also reveals that there is strong need to build terminals since the Huizhou CNOOC Shell Petrochemical project is starting commercial operation in 2006. About 96% of the project is completed now. The project has an annual output of 2.3million tons of petrochemical products for the Guangdong and neighboring regions. As such, the need to build exporting ports will be compelling.

CNOOC has a 45% equity stake in the joint venture operation, CNOOC Shell Petrochemical Co. Ltd., while Royal Dutch Shell has a 50% equity stake. The project attracts a total investment of US$4.3 billion. It is scheduled to complete by year-end 2005.

Hong Kong Commercial Daily News

Hong Kong Hutchison Port Holdings To Invest in Ro-Ro Terminal in Thailand
August 29, 2005
Chinese News Digest

Hong Kong port developer and operator Hutchison Port Holdings (HPH) will invest in a roll-on roll-off (ro-ro) terminal at the Laem Chabang Port, southern Thailand, the company said on August 26, 2005.

A new joint venture company, formed by an HPH-led consortium, has been awarded a 30-year concession to build and operate the new ro-ro terminal at the Laem Chabang deep-sea port, with the capability to handle also general cargo.

The new ro-ro terminal will have a total quay length of 500 metres and a depth alongside of 16 metres.

Thailand is currently the automotive manufacturing hub in Southeast Asia and investing in the new ro-ro terminal is clearly in alignment with HPH's business strategy. The additional ro-ro and general cargo facilities will provide value-added services to the company's customers in the Port of Laem Chabang as it strives to become the region's transport hub, the Group Managing Director of HPH, John Meredith, said.

Apart from the new ro-ro terminal, HPH has a strong presence in Laem Chabang with its container terminal facilities at Thai Laemchabang Terminal and Hutchison Laemchabang Terminal, under which six container terminals will be developed. Laem Chabang is located on the Gulf of Thailand, in the middle of industrial and manufacturing zones, home to many of the world's largest producers and manufacturers.

NOTES: The key element of ro-ro terminals is that all cargo remains on wheels throughout the terminal transit cycle. Vessel turnaround times vary according to the size of the vessel and the quantity of cargo. The productivity of ro-ro terminals depends on the cargo rolling off the ship, through the terminal and related processing, and onto final destination.

European Container Terminals

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Europe Container Terminals (ECT) is one of the largest terminal operators on the continent. The company, a subsidiary of Hutchison Port Holdings, handles nearly three-quarters of all containers that pass through the Port of Rotterdam annually. ECT welcomes ships from the North Sea at its three main terminals and additionally operates a network of inland terminals to facilitate shipments to the European hinterland (these facilities include Venlo in the southeast of the Netherlands, Willebroek in Belgium, and Duisburg in Germany). The company was founded in 1966.

Hutchison to invest $1 bln in Panama ports upgrade

PANAMA CITY, Sept 9 (Reuters) - The Panama Ports Company, a unit of the container terminal arm of Hong-Kong-based Hutchison Whampoa Ltd. , plans to invest $1 billion to quadruple capacity at two key ports in Panama over the next 10 years.

As global shipping trade grows, Panama Ports hopes its terminals -- Balboa on the Pacific coast and Cristobal on the Atlantic Ocean -- will become regional distribution centers for cargo, hence the expansion upgrades.

In a letter to the government obtained by Reuters on Friday, Panama Ports said it will invest $300 million at Balboa port and $200 million at Cristobal port to increase capacity in the next three years and another $500 million up to 2015 to boost capacity again at both ports.

Panama is home to the famous Panama Canal that allows shipping to cross between the Atlantic and Pacific Oceans, without making the long trip around Cape Horn. Traffic through the canal is increasing as world trade grows.

"We have the ability and intention to transform both ports into mega-ports that will make them both premier destinations for trans-shipment cargo," Panama Ports' general manager Alejandro Kouruklis told Reuters in an interview.

Panama ports said the first upgrade will increase capacity to 4 million TEUs (20-foot equivalent units) from 1.5 million TEUs at both Balboa and Cristobal.

CARGO INCREASING DRAMATICALLY

The second upgrade will take capacity at both ports to 6.5 million TEUs, which is a universally recognized cargo measure referring to a standard-sized shipping container.

"Panama will become a regional distribution center in both ports," Kouruklis said. "All the cargo can be dropped there and taken elsewhere to save the big ships stopping everywhere."

"Panama is the ideal trans-shipment port for cargo from Asia, the United States and Europe," he said. "The amount of cargo is increasing dramatically every year and we need greater capacity to provide shipping firms with what they need."

Panama Ports is a subsidiary of Hutchison Port Holdings, a unit of Hutchison Whampoa. Hutchison owns 90 percent of the company and the Panamanian government holds the remaining 10 percent.

Panama Ports has a 50-year concession to operate the ports until 2047.

In 2002, the government of President Mireya Moscoso controversially annuled two contract clauses that had Panama Ports paying $22.2 million per year to the government and also a 10 percent charge on its annual gross income from operations.

Those annulments were overturned this week by President Martin Torrijos after a two-month battle with the firm. Panama Ports Agreed on Friday to pay $102 million to government coffers.

Shanghai's Yangshan port shareholding in dispute
Final shareholding deal faces delay as partners question equity split
Russell Barling
26 September 2005
South China Morning Post

Hutchison Port Holdings and APM Terminals will be the first foreign firms awarded a role in Shanghai's US$12 billion Yangshan deepwater port project, but disclosure of their official equity stakes may be delayed because the initial share-holding structure has run into strong opposition.

According to executives close to the deal, a consortium of Hutchison, Denmark's APM, Cosco Pacific, China Shipping Terminal Development and the Shanghai International Port Group (SIPG) was awarded the four-berth project on Wednesday last week with SIPG receiving the single biggest share. The aggrieved parties were state-owned Cosco and the China Shipping Group, each awarded a 10 per cent stake in a project that may see the consortium asked to share capital costs of US$820 million.

"[The authorities] are now expecting to conclude the deal in the first quarter of next year," one senior port executive said. "Cosco insists they are not going to take [the present equity split]. They think it is an insult."

Accounts of the equity split varied but all the executives queried by the South China Morning Post agreed the five companies asked to form the consortium had been finalised. Also agreed was the fact that phases I and II at Yangshan - nine berths in all - eventually would be managed by SIPG.

One version, however, had SIPG receiving 30 per cent of the project with Hutchison and APM Terminals awarded 25 per cent each. All agreed the split might change, but not the partners.

Spokespersons for Hutchison, APM, Cosco and SIPG declined to comment yesterday. China Shipping could not be reached.

SIPG and its wholly owned listed A share, Shanghai Port Containers, were last year awarded phase I, raising the spectre of an equity swap between companies from the first two phases.

Fu Yuning, chairman of blue chip China Merchants (International), last week alluded to a probable "co-operative arrangement" between equity holders from the first two phases. China Merchants owns 30 per cent of SIPG.

The deal would appear to leave Singapore's expansion-minded PSA International and Britain's P&O Ports out in the cold until at least the end of 2007, when phase III should be available, depending on continuing strong demand.

It is understood that the award of phase II was influenced in part by the desire to compensate the port operators that lost business in July, when Shanghai authorities enforced the transfer of all Sino-Europe shipping services from the Waigaoqiao complex to Yangshan phase I for its November launch.

Cosco Pacific, Hutchison and APM Terminals - a subsidiary of the giant AP Möller Group that includes the world's biggest shipping line, Maersk Sealand - all had equity stakes in the terminals at Waigaoqiao and were disadvantaged by the directive.

Trial runs at phase I will begin next month with full operation set for November. Phase II's launch is scheduled for the end of next year.

Hutchison’s container plans run aground again
6 October 2005
The Economic Times

MUMBAI: The Hutchison group's efforts to enter India's thriving port sector have hit a roadblock again. The defence ministry has once again turned down the Hong Kong-based Hutchison Port Holding's move to bid for Mumbai's mega container terminal project on security grounds. It has also rejected the bid by Taiwanese shipping company Evergreen Marine.

This has left nine shortlisted parties in the fray, including foreign companies P&O Ports of the UK, Mitsui OSK Line of Japan, Maersk of Denmark and Dubai Ports (DP) World. The Indian players in the fray include United Liner Agency, L&T, Adani Ports, Gammon India and ABG Heavy Industries.

"It is surprising that the defence ministry has turned them down," said a senior port official. While Hutchison is a leading player in India's telecom sector, Evergreen is one of the major container shipping lines with operations in the country.

Evergreen, which set up its Indian subsidiary in April '04, has now completed the takeover of agency operations in India from Mumbai-based Greenways Shipping Agencies, and has retained employees. Its five new offices - in Kolkata, Haldia, Kandla, Ahmedabad and Bangalore - are operational since October 1, '05. The other six offices - in Mumbai, Nhava Sheva, New Delhi, Cochin, Tuticorin and Chennai - have been operational for the past 18 months.

An industry official said that both Hutchison and Evergreen, with their deep pockets, were keen to bid for the Mumbai offshore container terminal project. Officials said that Hutchison had earlier joined the bidding process at Jawaharlal Nehru Port (JNPT) for the third terminal, but had to withdraw when the defence ministry pulled the rug two years ago.

For the Rs 1,164-crore offshore terminal in Mumbai, the port trust had earlier shortlisted 11 parties. Now, the nine short-listed companies will submit financial/ technical bids before the November 4 deadline.

The successful party will operate the existing container berth in Mumbai Port, and eventually shift operations to the offshore terminal. The terminal includes two offshore berths, which are 700 metres long and 65 metres wide and extendable by 350 metres. These berths are designed for vessels that carry up to 6,000 containers. The draught at berth would be 16 metres, while the approach channel would be 13.5 metres. The total traffic is expected to be around 1.2m containers.

MbPT had re-drafted the terms and conditions, incorporating some new incentives to attract investors. Following the successful model of Cochin Port's terminal bidding, the port offered the BPS (Ballard Pier Estate) container berth to the successful bidder for the offshore terminal. "The successful bidder could start earning money from day one, as the BPS berth is at present operational - this berth can handle about 200,000 containers," said a port official.

Also, the port has assured bidders of improving the cargo evacuation facilities by providing better rail and road linkages. "The port has also assured the bidders that the cost of deepening of the channel at the berth side will not be thrust upon them. The port is also providing space for container stackyard and freight station (CFS) if the successful bidder wants to set up its own yard/ freight station, apart from additional stacking pace," said the official.

Hutchison to upgrade Panama port
Conglomerate plans US$200m capacity expansion for Cristobal terminal to cash in on growing volumes
Charlotte So
22 October 2005
South China Morning Post

Hutchison Port Holdings, one of the world's largest port operators controlled by tycoon Li Ka-shing, plans to spend US$200 million on its Panama facility to expand its handling capacity to 1.5 million containers annually - five times its present capacity.

The upgrading project would enable the port to handle post-Panamax vessels - ships of more than 100,000 gross revenue tonnes - and capitalise on growing volumes moving through an expanded Panama Canal.

The Panama Ports Co, 90 per cent owned by Hutchison Port Holdings, yesterday said Cristobal Port on the Atlantic end of the canal would become a "megaport" and "one of the most important hubs of transshipment of containers in the Caribbean".

The widening of the waterway is still subject to approval from the Panamanian government. The plan calls for the construction of a 350-metre berth for post-Panamax vessels, which are too large to squeeze through the canal, as well as a 320-metre berth for canal-sized ships. There would also be an eight-hectare area for stacking containers, with 19 cranes.

Panamanian ports handle about 2.4 million containers a year, up from 286,000 in 1994.

Cristobal Port competes on the Atlantic coast with the expanding Manzanillo International Terminal and with a port owned by Taiwan conglomerate Evergreen.

The Panama Ports Co also runs the port on the canal's Pacific side and is the only container terminal operator on that coast.

Last week, the Panamanian government opened tenders for a six million teu (20-foot equivalent units) megaport project on the country's Pacific coast.

It is reported that the Port of Singapore Authority, Evergreen and P&O Ports are prospective bidders for the US$1 billion project. Tenders close on November 18.

Meanwhile, Port of Felixstowe, a subsidiary of Hutchison Ports in Britain, is expanding its container handling capacity.

Port of Felixstowe said a record number of containers left its docks by train last month as the port operator tried to transport a bigger slice of imported goods by rail rather than by road.

More than 32,000 containers left the port on England's southeast coast by train, the company said.

The port planned to increase the proportion of goods that leave by rail to about 27 per cent in coming years from about 23 per cent today, said spokesman Paul Davey.

Port of Felixstowe is waiting for a decision by the British transport department on whether it can expand its capacity to handle container ships.

The port, founded in 1886, competes with Southampton, Harwich and other ports in attracting container ships carrying Asian goods bound for Britain.

Hong Kong's Hutchison in Talks on Buying into Russian Container Terminals
26 October 2005
Russian Financial Control Monitor

MOSCOW. The Hong Kong-based port operator Hutchison is in talks on buying 50% in the First Container Terminal (PKT) and the Baltic Container Terminal (BKT).

The news of Hutchison coming to the Russian Baltic first appeared early this year. The company intended to take part in a container terminal construction in Lomonosov, but the project's main investor, Yantar, refused to give up a controlling stake and Hutchison did not agree to anything less. The company's strategy envisages the purchase of terminals in all key places of global sea trade, and so it began looking for another partner in the Baltic. In late April it launched talks with the National Container Company, which owns PKT, the largest Baltic terminal situated in St. Petersburg, and is also building BKT in Ust-Luga.

Hutchison and its Russian partners are said to have reached an agreement of principle on selling 50% in both terminals to the Chinese.

18/Oct/05
Dalian Ports Corporation Limited and the HPH Group to Jointly Develop Dalian Ore Terminals
HPH Press Release

http://www.hph.com.hk/images/news/hph-18oct05.jpg
Dalian Ore Terminals - Joint-venture contract signing ceremony.

Front Row (left to right): Mr. James Tsien, Managing Director of Hutchison Ports China and Mr. Sun Hong, General Manager of Dalian Ports Corporation Limited.

Back Row (left to right): Mr. Henry Wah, Director of Hutchison Ports China, Mr. Simon To, Managing Director of Hutchison Whampoa (China), Mr. Yuan Fuxiu, Chairman of Dalian Ports Corporation Limited, Mr. John Meredith, Group Managing Director of Hutchison Port Holdings, Madame Sun Chunlan, Party Secretary of Dalian, and Mr. Xia Deren, Mayor of Dalian.

[October 18, 2005 - Hong Kong] Dalian Ports Corporation Limited and the Hutchison Port Holdings (HPH) Group have entered into a joint-venture agreement to invest and develop an ore terminal in Dalian.

Dalian Ore Terminals Limited, the newly-formed company, has an equal shareholding of 50:50 between Dalian Ports Corporation Limited and the HPH Group. Dalian Ore Terminals Limited has a tenure of 50 years and a total investment of RMB 2.2 billion.

The joint-venture contract was signed by Mr. Sun Hong, General Manager of Dalian Ports Corporation Limited and Mr. James Tsien, Managing Director of Hutchison Ports China.

Mr. Yuan Fuxiu, Chairman of Dalian Ports Corporation Limited, said, "We must operate ports with a global perspective. We are excited about the strategic partnership with HPH, the world's leading port investor and developer, bringing best managerial practices and technological expertise to this new joint-venture. By leveraging both companies' strengths, we are confident that Dalian Ore Terminals will contribute to the transformation of Dalian Port into a major maritime centre in the region."

Commenting on the cooperation, Mr. John Meredith, Group Managing Director of HPH, said, "We are pleased to team up with Dalian Ports Corporation Limited to spearhead the development of Dalian Ore Terminals. It marks HPH's first dedicated non-containerised terminal operation in the PRC, expanding the Group's network to North China and delivering value-added services to our customers. The investment reflects the importance of Dalian's strategic location in North China. We are committed to working with the relevant parties to develop Dalian Port into a maritime hub in Northeast Asia."

Dalian Ore Terminals will come on stream as soon as it receives approvals from the relevant government authorities.

Dalian Ore Terminals Limited is built with the following facilities:

Total Area: 79 hectares
Vessel Berths: 2
Total Berth Length: 886 metres
Depth Alongside: 23 metres
Ship Unloader: 3
Stacker Reclaimer: 2
Conveyor Belt: 1
Rail Loading Station: 1

Port of Sohar - Container-terminal plans in the works
4 November 2005
Tradewinds

Part of the facilities included in the business plan for the Port of Sohar is a large container terminal.

An agreement was reached at the end of September to form a joint venture between Hong Kong-based Hutchison Port Holding, C Steinweg of the Netherlands and the Government of Oman, including local Omani investors, to operate the terminal.

The joint venture will be called Oman International Container Terminal (OICT). Paving and equipment installation started immediately thereafter to allow container operations to commence in April 2006.

The first terminal has two main line berths equipped with post-panamax gantry cranes and a 16-metre draft capacity. Construction of additional OICT container berths will start later this year and come onstream towards the end of 2007 with single or double berth increments. These terminals will have 18 metres of water depth to be able to accommodate the larger containerships of the future.

OICT will start with serving containerised shipments generated by industries in and around the Port of Sohar. Alexander Haex, SIPC's commercial manager, explains that while the container port is designed to serve the local market, it could in all likelihood become competition for the region's other ports if a healthy transhipment business develops.

"It has never been our intention to take away business from other ports but if our own import and export volumes result in Sohar becoming a port call on the routes of liner majors, I have no doubt that some feeder operations to regional ports will develop," he said.

Jan Meijer, SIPC's chief executive officer, is confident that the liner majors will come. "The Port of Sohar is strategically located in the Gulf region outside the Strait of Hormuz. It has a massive upcoming industrial base generating containerised exports. The region is also a major importer of consumer goods. These factors will support an increase of container traffic and will attract direct calls to Sohar by the world's leading container-vessel operators," he said.

Indian Ports - Hutchison rebuffed on security concerns
By KATHRIN HILLE and KHOZEM MERCHANT
7 November 2005
Financial Times

India has rejected Hutchison Port Holdings, the world's largest independent port operator, from a list of potential bidders for a Dollars 270m offshore container terminal project in Mumbai, citing national security concerns.

The development underscores Indian intelligence authorities' deep anxieties over what they regard as the creeping presence in India of entities controlled by, or linked to, China.

Hutchison Port failed to win security clearance to build and operate the Mumbai Port Trust container terminal "because of its Chinese connections", according to a senior executive at the country's largest ports authority.

Hutchison Port is part of the Hutchison Whampoa group controlled by Hong Kong billionaire Li Ka-shing. Hutchison Port declined to comment, but people familiar with its position said it had appealed against the decision.

Evergreen, the Taiwanese transport services company, also failed to win security clearance for the Mumbai container project for similar security reasons, according to the same executive at Mumbai Port Trust.

Evergreen said it was "surprised and upset" but was trying to communicate with the Indian authorities in order to clarify that Evergreen was not a Chinese enterprise.

"As a group which has invested in port operations all over the world, we have never encountered suspicions over security in any other country," the company said. Evergreen said security clearance for port projects had been established by the Indian authorities because China had been seen as an ally of Pakistan. "But Hong Kong is Hong Kong and Taiwan is Taiwan," the company said.

This is the second time Hutchison Port's bid to enter the Indian port management market has foundered on security grounds. About a year ago the company suffered a similar rebuff when central government security agencies removed it from a shortlist of candidates bidding to operate a terminal at Jawaharlal Nehru Port in Mumbai, India's busiest.

Evergreen also encountered security concerns when it bid for building and operating contracts at Jawaharlal Nehru Port last year and five years ago. However, it passed clearance after convincing authorities it had no Chinese ties.

An application by Huawei, China's largest telecoms products manufacturer, to expand its operations in India has also provoked hostile reactions from senior Indian security officials.

Hutchison Port and Evergreen were among 11 Indian and foreign companies that submitted so-called "expressions of interest" in a public-private project with Mumbai Port Trust.

HK's Hutchison Whampoa unit bids for UK's P&O in 3 bln stg deal -report
7 November 2005

HONG KONG (AFX) - Hutchison Whampoa unit Hutchison Port Holdings is among several companies interested in buying Peninsular and Oriental Steam Navigation (P&O) of the UK in a deal estimated to be worth more than 3 bln stg, the South China Morning Post reported without identifying any source.

The race for P&O's takeover is said to be confined to Hutchison Port, Singapore's PSA International and APM Terminals of Denmark, who are all deemed capable of matching a minimum 3 bln stg bid to be offered by Middle East port operator DP World.

Hutch in 10b yuan port venture

Hutchison Port Holdings, a unit of tycoon Li Ka-shing's Hutchison Whampoa, said it has agreed to take a controling stake in a joint venture to expand Shenzhen's Yantian port - a project which involves total investment of more than 10 billion yuan (HK$9.59 billion)

Hong Kong Standard
Wednesday, November 09, 2005

Hutchison Port Holdings, a unit of tycoon Li Ka-shing's Hutchison Whampoa, said it has agreed to take a controling stake in a joint venture to expand Shenzhen's Yantian port - a project which involves total investment of more than 10 billion yuan (HK$9.59 billion).

Hutchison Port said it will own 65 percent of the venture, while Shenzhen Yantian Port Group will hold 35 percent. It didn't disclose how much each firm will invest in the expansion project at the Yantian International Container Terminals.

"We firmly believe that South China will remain one of the fastest- growing regions in the world," said Li, Hutchison Whampoa chairman. "This provides Yantian Port with a great opportunity for further development."

Hutchison Port and other port operators such as Modern Terminals, China Merchants Holdings (International) and Singapore's PSA are stepping up expansion in China, betting that the country's external trade continues to surge.

Hutchison Port's latest agreement in Yantian port followed last month's announcement that it will form a 50-50 joint venture in Dalian to develop an ore terminal involving investment of 2.2 billion yuan.

Hutchison Port is also developing the HK$6.6 billion third phase of the Yantian port, which is expected to be completed by the end of this year. The company also has investments in Shanghai, Ningbo and smaller cities such as Xiamen and Zhuhai.

Shenzhen handled 13.7 million standard 20-foot container boxes in 2004, up 28 percent from 2003, Hutchison Port said. Yantian port accounted for about half the city's total throughput, it added.

The expansion project will raise total area of the Yantian International Container Terminals by 136 hectares, about 65 percent of the combined 208 hectares of the current three phases, Hutchison Port said. It will also add six new berths on top of existing nine.

The project was approved by the central government in March, and the first berth will be operational in the second half of 2006, Hutchison Port said. The entire project is expected to be completed by 2010, it said.

Throughput at its Yantian deepwater port operations rose 21 percent in the first half this year, and earnings before interest and taxes jumped 17 percent, a Hutchison Whampoa's interim report said. Hutchison Whampoa derived HK$14.4 billion revenue from its ports and related services in the first half, or about 15 percent of total turnover.

Shenzhen, Hong Kong Expand Yantian Container Port
14 November 2005
China Industry Daily News

Hong Kong's Hutchison Whampoa Port Group and Shenzhen Yantian Port Group have signed an agreement to expand the Yantian Container Port, the Xinhua website reported on November 11th.

The expansion project received approval from the National Development and Planning Commission in March of this year. It has a total investment of 11.48 billion yuan, with Hutchison Whampoa Port Group holding a 65% share, and Yantian Port Group 35%.

The Yantian Container Port expansion project will occupy an area of 1.36 million Sqm, covering five 70,000-100,000 tons berths and one 30,000-ton berth. Annual throughput is expected to reach 3.7 TEU. Large container ships with loading capacity over 10,000 TEU can stop at the port.

According to the agreement, the first berth will be put into use at the next half of 2006. Upon completion in 2010, the Yantian International Container Port will have a total area of 3.44 Sqm, including 15 deep-water container ship berths.

HPH denies Yantian will edge out HK - Pearl River Delta logistics park a possible threat to hub role
10 November 2005
South China Morning Post

One of the world's leading port executives has denied his company's investment in the 10 billion yuan expansion of Yantian Port would erode Hong Kong's role as a hub for international transshipment.

However, others fear a customs-bound logistics park at the Pearl River Delta port would seriously dent Hong Kong's position.

"Transshipment is increasing [in Hong Kong]. Yantian does not handle transshipment now and its primary cargo is local cargo," according to John Meredith, the group managing director at Hutchison Port Holdings (HPH).

He said HPH - which has gained approval to expand the joint venture to 10 billion yuan from an initial 6.6 billion yuan - is happy to invest further in Hong Kong ports if demand is there.

Meanwhile, one of the eight customs-bound logistics parks in the mainland is to enter service in Yantian next month.

An official from the Shenzhen Administrative Bureau of Free Trade Zones told the South China Morning Post that the 0.96 square kilometre logistics park would have all infrastructure ready by the end of this month and was due for a customs inspection next month.

However, Yantian's upgrade from a free trade zone to a logistics park has the capacity to compromise Hong Kong's lead in the field of transshipment and logistics.

"Unlike a free trade zone, exporters in the mainland can claim their tax rebate immediately when their goods enter the customs-bound logistics park. At the moment, they have to export to Hong Kong to get the same treatment," said Louis Lee, of Yusen Air and Sea Service (HK), and a committee member of the Hong Kong Association of Freight Forwarding and Logistics.

The logistics park would also enable Yantian to perform post-production assembly allowing an exporter to outsource the assembly process to companies in the park, where, for example, a motherboard produced in Donguang could be assembled with a plastic case from Zhongshan and packed with a booklet printed in Japan.

The finished goods could then be exported from Yantian cheaper than by Hong Kong logistics companies operating from Kwai Chung and Kowloon Bay.

Mr Lee said Yusen handles import and re-export shipments, which account for 20 per cent to 30 per cent of total shipments.

Most of the factories in the Pearl River Delta are in the processing trade, turning imported tax-free raw materials into finished goods ready for export. If they want to assemble the semi-finished goods made from tax-free materials, they have to export it to Hong Kong to fulfil customs requirements.

Though Yantian established the zone in 1994, its customs-bound function has always been handicapped because exporters could not claim their value-added tax rebate when they entered the zone.

However, a senior manager said the rebates had dropped significantly, from 17 per cent to less than 10 per cent, depending on the goods being shipped.

Analysts, meanwhile, have dismissed fears that Yantian is running the risk of overcapacity.

"We expect the container port's utilisation rate to hold up well, mostly above 80 per cent, between 2005 and 2010," according to a Merrill Lynch report.

Oman in port venture with Hong Kong, Dutch firms

MUSCAT, Nov 16 (Reuters) - Oman on Wednesday signed a joint venture deal with Hong Kong's Hutchison Port Holdings and Steinweg of the Netherlands to set up a container terminal at Sohar port.

The Oman International Container Terminal will be formed with investment from the government and the two companies, Economy Minister Ahmad bin Abdul-Nabi Mekki said after signing the deal. He did not give the cost of the project.

Sohar Industrial Port Co, which operates the Gulf Arab state's industrial port, is a joint venture between Oman's government and the Port of Rotterdam.

Container operations are scheduled to start in April 2006, a Hutchinson statement said.

Yantian International Container Terminals Awarded the "Best Global Container Port of the Year 2005-06"
First Chinese Port to Receive a Global Award

Date: 27-10-2005
Corporate Press Release

On 26 October 2005, YICT was awarded the "Best Global Container Port of the Year 2005-06" by the Global Institute of Logistics (GIL) in London. This marks the first time that GIL has awarded such an accolade to a port operator and also constitutes
the first global award to be presented to a port in China.

Established in 2001, GIL has its headquarters in New York. The institute acts as an advocacy body for the global third party logistics (3PL) industry, and to that end works with its members to assist them in understanding the challenges faced in outsourcing the logistics process. Currently, GIL has 4,500 members comprised of logistics companies from all over the world.

GIL's decision to recognise YICT as the first seaport to be awarded the coveted title of Best Global Container Port was based on the GIL Awards Committee. The committee
acting on intelligence collated from members by the research department, reviewed the
areas covering service, productivity and contribution to the improvement of government
regulation in the application of technology, scale and coverage of service. Following a
unanimous decision by the committee, YICT was selected among the four short-listed
candidates as fulfilling the committee's requirements.

Commenting on the award Mr. Kieran Ring, CEO of GIL, said, "YICT demonstrates an
excellent customer service plus attitude that is evidenced across a wide spectrum of
services designed to enhance the competitiveness of the customers they serve. YICT
has been a proactive innovator in the appropriation of next generation technology, which
anticipates the changing needs and demands placed on the port industry as a whole.
Additionally, its management and executives have availed themselves to the global
logistics community in a way that we haven't witnessed before and have done much to
enhance port operator/shipper relations. Therefore we are delighted to honour them in
this way and encourage other port operators worldwide to look no further than YICT
when choosing an operation to emulate".

"I am honoured to accept this award on behalf of YICT. This accolade demonstrates the
recognition we have received from industry leaders and logistic experts in the efforts we have made to enhance our port facilities and services to best provide for the changing needs of our customers. In today's global economy, international businesses are
seeking further opportunities in sourcing globally. To survive, YICT has to be an integral part of that supply chain. Therefore we must support the logistics community to ensure our continued competitiveness", said Mr. Kenneth Tse, Director and General Manager of YICT, following the announcement of the award.

Hutchison Sails Away from P&O Sale Saga
BY JAMES QUINN
6 December 2005
Daily Mail

HONG Kong giant Hutchison Port Holdings has privately ruled itself out of the running for P&O.

It is the second would-be buyer to distance itself and the UK owner of the giant Southampton and Tilbury container facilities.

P&O shares fell 22p to 472p yesterday as it emerged Singapore's Temasek is unlikely to bid.

This was a blow to investors who thought the group's stake-building was the prelude to an auction.

The only firm offer is a £3.4bn recommended deal from DP World, owned by the Dubai royal family. But even that could be in jeopardy if, as expected, Temasek, which holds 4.1pc, amasses 10pc of P&O.

By building its holding, it hopes to influence P&O's future - which could extend to derailing DP's offer.

Hutchison, meanwhile, has intimated it will not be playing a pivotal role in the saga - either as bidder or as part of a break-up consortium.

Instead, it has told its advisers at JP Morgan to simply keep a watching brief at this stage. Hutchison feels DP's 443p a share offer is fully priced and would find it hard to better that deal.

It was all action in the sector as Teesport-owner PD Ports (up 8p at 148p) confirmed it has had a second bid, from Australian investment house Babcock &Brown, just a week after recommending a 1401/2p-ashare bid from a consortium led by 3i.

Hutchison Port plans to invest in Spanish terminal
Tue Dec 13, 2005 02:41 AM ET

HONG KONG, Dec 13 (Reuters) - Hutchison Whampoa Ltd.'s port operating arm, Hutchison Port Holdings (HPH), said on Tuesday it will buy a majority stake in a container terminal in Spain, in its third port acquisition in less than five weeks.

HPH said it has signed an agreement with Grupo Mestre of Spain to develop container Terminal Catalunya S.A. (TERCAT) in the Port of Barcelona, located in the northeast of Spain where 40 percent of the country's domestic container trade is handled.

But the company did not disclose the investment amount.

Hutchison, the world's largest container port operator, last month agreed to invest in a container terminal in the Port of Sohar, Oman, and boost its stake in an inland terminal in Duisburg, Germany, to 51.56 percent from 27 percent.

The Port of Barcelona is a major entry point to the Iberian Peninsular and is experiencing steady trade growth, HPH said.

"TERCAT has an established history in the port and we are positive the partnership will further expand TERCAT's capabilities in capturing the trade activities in the region," group managing director of HPH, John Meredith, said in a statement.

HPH, which operates a total of 242 berths in 41 ports, handled 47.8 million 20-equivalent-foot units of goods in 2004.

Maersk, Hutchison invest in China's Yangshan Port
By Lucy Hornby

SHANGHAI, Dec 19 (Reuters) - A.P. Moeller-Maersk and Hutchison Whampoa Ltd. signed an agreement on Monday to buy into Phase II of the Yangshan deepwater port near Shanghai, becoming the first international investors to join the multi-billion dollar container project.

Maersk's port arm, APM Terminals, and Hutchison's port arm, Hutchison Port Holdings, will each take 32 percent of the four-berth project, which is due to be completed by the end of 2006, Maersk partner Tommy Thomsen said.

When fully completed, Yangshan could help Shanghai edge out Singapore and Hong Kong as the world's largest container destination and could draw business from other regional ports, such as Pusan in South Korea and Kaoshiung in Taiwan.

"I have no doubt that ... Yangshan will ensure the port of Shanghai becomes the biggest port within 3-4 years," Thomsen said.

Shanghai International Port Group (SIPG), which is 30 percent owned by China Merchant Holdings (International) , will take 16 percent of Phase II. COSCO Pacific and China Shipping Group will each have 10 percent.

The $1.24 billion, five-berth Phase I of Yangshan Port, owned by SIPG and its Shanghai-listed affiliate Shanghai Container Co. Ltd. , opened this month.

Phase II of the port will cost $740-$870 million, Liu Zuo Liang, chairman of port builder Shanghai Tongsheng Investment (Group) Co. Ltd., said at the opening.

Shanghai, ranked the third-busiest container port in the world by volume, had lacked a deepwater port before Yangshan was constructed from islands in the mouth of Hangzhou Bay. Silt at the mouth of the Yangtze had previously limited the size of ships that could call at Shanghai.

"Yangshan port opens up the possibility to bring in bigger ships to Shanghai," Thomsen said. "Potentially, in the future, Shanghai including Yangshan could become the major shipping area of Northeast Asia."

That could create competition for the port of Pusan in South Korea, which plans to double container handling capacity by 2011.

"The key issue is what port facility in the area will provide the best service in terms of deepwater, efficiency and competitive pricing," Thomsen said.

Maersk's container shipping activities to and from Korea will continue to be an important part of its business, he added.

MORE PHASES

Backed by China's strong exports in recent years, container terminals in Shanghai handled 14.89 million 20-foot-equivalent units (TEUs) of goods in January-October, up 25 percent year on year.

Its throughput growth has surpassed the country's southern boomtown of Shenzhen, which recorded about a 19.6 percent rise in volume to 13.38 million TEUs in the same 10 month period.

As Shanghai's traffic grows, Yangshan will add capacity, with current blueprints calling for around 30 berths and some government plans envisioning as many as 50.

Maersk could be a potential tenant and investor in the third phase and beyond, Thomsen said.

"My guess is we will have an interest in future phases," he said. The company owns a 49 percent interest in a joint venture developing the fourth phase of Shanghai's older Waigaoqiao port.

Hong Kong conglomerate Wharf Holding's Modern Terminals Ltd., which failed to get a slice in the Phase II of the project, hopes to participate in the third phase.

(Additional reporting by Alison Leung in Hong Kong)

Li Ka-shing launches Shanghai Mingdong box port
By Keith Wallis in Hong Kong
21 December 2005
Lloyd's List

Hutchison Port Holdings officially launched Shanghai Mingdong Container Terminals as phase five of Shanghai’s Waigaoqiao container port on the same day the firm and four partners signed a deal for the second phase of Shanghai’s Yangshan port.

Hutchison Whampoa chairman Li Ka-shing and Shanghai International Port (Group) chairman Lu Haihu were all smiles at the opening ceremony even though Shanghai Mingdong Container Terminals will lose its bluewater services as Yangshan develops.

Under the development plan devised by Shanghai International Port (Group), Asia-Europe services that previously called at Waigaoqiao have already moved to the first phase of Yangshan which officially opened on December 10. Transpacific services are expected to follow next year.

In a further effort to encourage the shift in box volumes Shanghai International Port (Group) won approval from China’s Communications Ministry to raise box handling charges at Waigaoqiao by about 10% from next January

In an effort to make up for the expected downturn in box volumes at Waigaoqiao the major terminal operators, including Hutchison, APM Terminals and Cosco Pacific, have been given stakes in the second phase of Yangshan.

A deal confirming the shareholding, which also includes China Shipping Terminal Development and Shanghai International Port (Group) as partners, was also inked.

Shanghai Mingdong Container Terminals, a 50:50 joint venture between Hutchison Ports Waigaoqiao and the Shanghai International Port (Group), has four deepwater container berths with a quay length of 1,110 m and two barge berths totalling 190 m.

Phase five, which has a total area of 1.63m sq m, has 12 super panamax quay cranes, 48 rubber-tyred gantry cranes and a stacking capacity of 24,649 teu. The terminal is located about 110 nautical miles from Yangshan port and about 50 nautical miles from the Yangtze anchorage.

HPH nears port expansion deal
24 December 2005
South China Morning Post

Hutchison Port Holdings (HPH) could be nearing the end of a five-year battle to expand the largest container complex in Britain.

After a public inquiry and an environmental impact assessment prompted by concerns of local residents, Britain's transport department has told Hutchison Port (UK), a subsidiary of HPH, that it is of a "mind to approve" further development of Harwich International Port.

HPH first applied for the expansion in October 2000.

"It is not the definitive decision, but we would see it as a favourable decision," said an HPH spokesman yesterday. There is still much documentation to be completed before getting final approval, he said.

The £300 million ($4 billion) project at Bathside Bay in Harwich will provide capacity for handling 1.7 million 20-foot equivalent units at a 1,400-metre long quay capable of handling four deep-water vessels at a time.

It is part of the plans to develop a new container facility within the Harwich Haven Ports area which includes Felixstowe, Britain's largest container terminal.

When completed, the Bathside Bay terminal will provide 500 additional jobs at the port.

Hong Kong's Hutchison Whampoa group to bid for Mumbai port project - report
3 January 2006


HONG KONG (AFX) - The port development arm of Hutchison Whampoa Ltd, Hutchison Port Holdings, and partners are one of the three groups bidding for a 260 mln usd port project in Mumbai, the South China Morning Post reported, citing a senior executive of Hutchison.

The newspaper said Hutchison Port has teamed up with construction company Larsen Toubro to submit technical proposals last month, after the Indian prime minister's office instructed the Ministry of Shipping to allow bids from Chinese firms.

The Mumbai project entails the construction of three berths over two phases.

If Hutchison wins the Mumbai contract, it would be the company's first project in India and only its second in South Asia, the newspaper said.

Hutchison in joint bid for Mumbai port - paper

HONG KONG, Jan 4 (Reuters) - A partnership of Hutchison Whampoa Ltd. and Indian construction firm Larsen and Toubro is one of the three groups bidding for Mumbai's US$260 million port project, the South China Morning Post said on Wednesday.

The pair are in the running after India last month reversed a Ministry of Defence decision taken in October to strike Hong Kong-based Hutchison from the list of eligible bidders on security grounds, the paper said. Taiwan's Evergreen Marine Corp. was also banned from bidding in October, the paper said.

If Hutchison wins, Mumbai will be the company's first project in India and its second in the south Asian region.

Hutchison Port Holdings (HPH), a unit of Hong Kong tycoon Li Ka-shing's Hutchison Whampoa, teamed up with Larsen and Toubra to submit technical proposals last month on the project after the ban was lifted, it said.

HPH would not comment on whether it was bidding for the project but said that it was never banned by the Indian government from bidding.

"HPH has never received any communications from the relevant authorities on the subject matter, thus we are not aware of any restrictions being placed on our possible port investements in India," the company said in a written reply.

Other bidders for the Mumbai port project included a partnership of India's United Liner Agency and the Port of Hamburg and a group led by Gammon India Ltd. , the paper said.

Temasek tacking duel leaves Dubai's bid for P&O in doldrums
7 January 2006
South China Morning Post

Hong Kong's richest man must be watching with keen interest as Singapore and Dubai fight a phoney war over one of his most serious rivals in the global ports and container handling business.

For as Li Ka-shing's Hutchison Port Holdings contemplates its own expansion plans, secure in the knowledge that no change of ownership is currently on the cards, British ports and ferries group P&O is not so lucky.

Six weeks after P&O accepted a £3.3 billion ($44.2 billion) takeover offer from Dubai's DP World, Singapore's state investment arm Temasek Holdings continues to lurk in the shadows of the London stock market, making the outcome of the offer uncertain.

Temasek has played a puzzling game. Shortly following DP World's 443 pence a share offer, Temasek whipped up the waters by acquiring P&O stock at 460 pence a share through its subsidiary, the Port of Singapore Authority. It raised its stake to 4.1 per cent, far from sufficient to give it voting muscle on P&O's board, yet potentially enough to sink the Dubai offer.

What investor in their right mind, after all, would be ready to sell at Dubai's price if there was any likelihood that Singapore would make a rival bid?

If Singapore is still muddying the waters by the time of the extraordinary general meeting of P&O shareholders, there is a possibility the DP World offer could run aground.

With no firm indication from Temasek of its future intentions, the share price has been hovering at 462 pence.

Yet this week, the British Takeover Panel rebuffed P&O's demand to issue a "put up or shut up" order to Singapore. Such an order would compel Temasek either to make a firm offer by a set deadline or to commit itself to keeping its boarding parties off the British company's decks for the next six months.

But the panel said Singapore was not a declared "offeror" for P&O on the watchdog's disclosure table of potential bidders. So far, at the panel's behest, it has merely said it has made no statement, which would restrict it "from any course of action".

In other words, it has neither declared an intention of making an offer, nor ruled an offer out.

Of course, it is perfectly possible that Temasek has chosen to make a financial investment in P&O and that it has no other agenda, that it wishes only to make money as a minority shareholder in a company majority owned by DP World.

But if so, why not make its intention clear?

True, the share price would then drop to the level offered by Dubai, but at least Temasek would have the hope of sharing in the potential upside in future. However, it would also risk being squeezed out by DP World if Dubai accumulated sufficient shares to do so.

Alternatively, Temasek's "financial investment" may be rather for the shorter term, designed merely to force DP World into making a higher offer, which it can then accept and withdraw. But there remains that nagging doubt.

Could Singapore really be planning to make an offer of its own for P&O? It has the funds to do so and quite possibly the strategic interest.

Temasek itself is merely a financial investor, and claims to be independent of state control, despite the fact that its chief executive is married to Singapore Prime Minister Lee Hsien Loong. But it would certainly be a coup for the Port of Singapore Authority to become the owner of one of the largest global port operators.

Whoever wins will be well placed to benefit from growth in world trade, as China and India continue their headlong economic expansion. P&O operates in over 100 ports around the world and its new owner will be taking over a ready-made network.

Dubai's focus might be more on trade through the Middle East, while Singapore's might be more on trade between Asia and North America as well as with Europe. But either would be able to operate globally with P&O's infrastructure under its control.

And, with two weeks to go before P&O's extraordinary general meeting, there is still time for one side or the other to make a more generous offer than the one which is already on the table. No doubt Mr Li will already have placed his bets.

Hutchison in talks for Zhanjiang Port stake
10 January 2006
South China Morning Post

Zhanjiang Port Holding has confirmed it is in talks with Hutchison Port Holdings about acquiring a stake in the southwest Pearl River Delta port company.

"Hutchison is in discussions with our parent company about the possibility of taking some equity interest in it," an official from Zhanjiang Port said yesterday.

While the company would not confirm the size of the acquisition being discussed, it is believed Hutchison wants to take a 40 per cent stake.

The company was 80 per cent owned by Zhanjiang Port, which was planning to float shares on the mainland, the company spokesman said.

Officials at Hutchison could not be reached for comment.

Following its investment in the Dalian iron ore terminal, announced in October last year, Hutchison would be further diversifying into the non-containerised terminal sector with an investment in Zhanjiang.

Hutchison currently has a 50-year, 2.2 billion yuan joint venture with Dalian.

The Zhanjiang government plans to invest 10 billion yuan in the mega-infrastructure project, including expansion of the Zhanjiang port's capacity to 100 million tonnes over the next five years.

Surrounded by the petrochemical plants established by the country's three largest oil companies, demand for oil transportation is likely to be robust in Zhanjiang.

Zhanjiang now has the country's biggest oil terminal, capable of handling 300,000 tonnes per year.

Hutchison last month sealed an agreement with the Shanghai International Port Group to invest in a 32 per cent stake in the mammoth Yangshan Port phase II project worth an estimated US$870 million.

Felixstowe ‘approval’ to trigger ports review
By Janet Porter
13 January 2006
Lloyd's List

FELIXSTOWE’S expansion plans are expected to receive the go-ahead next week, clearing the way for the UK government to launch a ports policy review.

Transport Secretary Alistair Darling will set out the scope of the promised review as soon as the final planning application still awaiting consent has been completed.

Lloyd’s List understands that an announcement will be made in the next few days, with Hutchison’s proposals for a major development scheme at Felixstowe almost certain to be cleared.

That is the last of three deepsea port projects that the government had said it would consider before tackling strategic port issues.

Hutchison wants to expand capacity at Felixstowe by 1.5m teu a year, bringing annual throughput to 5.2m teu.

Just before Christmas, transport minister Derek Twigg granted conditional approval to Hutchison’s Bathside Bay development at Harwich where there are plans for a 1.7m teu facility.

Final approval is dependent on certain highway improvements. P&O Ports’ plans for a container terminal in the Thames estuary were also conditional on upgrading local infrastructure.

In a written statement to parliament a few days ago, Mr Darling said the government believes this expansion in deepsea container port capacity is justified by the economic benefits it will bring regionally and nationally.

He indicated at the time that the Felixstowe decision was imminent.

Port operators are divided on the merits of the government review, with many of the bigger ones opposed to any moves by the government to dictate where ports should be built. They argue that such decisions should be commercially, not politically, driven.

But PD Ports is fully behind the decision to hold a review and has said on many occasions that it would support greater central involvement in planning matters to ensure there could be no repeat of the hugely expensive and drawn out but unsuccessful Dibden Bay application.

The company also argues that the whole country would benefit from more port capacity in the north of the country, and that the government should help redress the balance by developing a national strategy.

HWL Becomes Paratactic Biggest Shareholder of Huizhou Port

HUIZHOU, January 24, SinoCast -- Hong Kong conglomerate Hutchison Whampoa has recently been approved to own a 33.39% stake in Huizhou Port Affairs Group Co., Ltd., a state-owned port business operator in southern China's Huizhou city in Guangdong Province.

Thus, Hutchison Whampoa has become the largest shareholder of Huizhou Port paratactically with its formal biggest shareholder.

And three Hutchison Whampoa people have been elected to enter the board of directors of Huizhou Port.

Hutchison Whampoa will first engage in port construction in the early phase of their cooperation.

It will build two joint venture port terminals with a capacity of 50,000 tons, which are expected to finish and open for operation within two years.

At present, nearly 4,000 companies in Huizhou city have to export goods via ports in Shenzhen city, instead of the local Huizhou port in view of its limited capacity.

So the planned two terminals will be helpful for local exporters'convenient and cheaper transportation.

Hutchison denies global ports alliance
By ROBERT WRIGHT
27 January 2006
Financial Times

The chief executive of Hutchison Ports Group has denied the company has a worldwide co-operation deal with Singapore's PSA, after claims that the alleged arrangement could affect the P&O takeover battle.

Speaking to the FT, John Meredith said a strategic alliance between Hutchison, the world's largest container port operator, and PSA applied only to the pair's operations in Hong Kong, the world's second-busiest container port. Elsewhere, the pair continued to compete fiercely. "There are areas where we're fighting like dogs," he said.

The relationship between Hutchison and state-owned PSA has become an issue in the takeover battle for P&O, the world's fourth-largest container port operator, after Dubai's DP World used sections of a press release issued last year to argue that the two had formed a worldwide strategic alliance.

The press release was issued after Hutchison, part of Li Ka-shing's Hutchison Whampoa conglomerate, sold 20 per cent of its key Hong Kong International Terminals (HIT) business to PSA.

DP World's advisers had argued that, because of the arrangement, the market shares of Hutchison, which is world number one, and PSA, which is world number three by capacity, should be looked at together in any competition investigations.

Mr Meredith said the deal in Hong Kong had been reached because Hong Kong's more expensive container terminals faced strong competition from lower-cost mainland China. It had been vital to ensure co-operation between the various operators in the port - which included PSA - to ensure prices were not cut unsustainably low. "(The PSA deal) helps us strategically here in Hong Kong," Mr Meredith said. "It has helped to stabilise the pricing. It has helped us to improve on the costs."

Within two months of the HIT deal, Mr Meredith said, the pair were competing in privatisation tenders for several Turkish ports, including Mersin, which PSA won. They were currently competing to win tenders in India.

It was common in the container ports industry for companies co-operating in one place to compete fiercely elsewhere, Mr Meredith said.

If PSA is successful in taking over P&O, it will become the world's largest container port operator by capacity, overtaking Hutchison. However, Mr Meredith was not worried about losing the title. "What we want to be is number one in making returns for stakeholders."

He also denied Hutchison's failure to enter the Indian container market was because the Indian authorities had barred it over its alleged ties with the mainland Chinese authorities. "We have never received any document or statement or indication from India that we cannot get involved in bidding (for port concessions)."

UK approves Hutchison port plan at Felixstowe

LONDON, Feb 1 (Reuters) - The British government said it had approved plans by Hong Kong conglomerate Hutchison Whampoa Ltd for a new container terminal at Britain's largest container port at Felixstowe, 120 km northeast of London.

Transport Minister Derek Twigg said a container terminal would be reconfigured as a deep-sea port and a 1 kilometre of quayside development would be added under the proposal by Hutchison Ports.

"The proposed reconfiguration of the port will contribute significantly to meeting the national need for additional container handling capacity in a sustainable manner," Twigg said in a statement on Wednesday.

The government last year rejected a proposal by Associated British Ports to build a deep-water port at Dibden in southeast England on environment grounds, but has indicated it will approve plans by P&O for a 1.5 billion pound container port and logistics centre near London.

P&O last week agreed a $7 billion takeover offer from Dubai Ports World after a bidding war broke out with rival suitor Singapore's PSA International.

Ready, Steady, Go for Felixstowe
13 February 2006
Traffic World

The British government approved plans by Hong Kong-based Hutchison Port Holdings to build a 1.5 million-TEU-a-year container terminal at Felixstowe, the United Kingdom's largest container hub.

The decision, which will increase annual capacity at Felixstowe to 5.2 million TEUs, is welcomed by ocean carriers and shippers who warned that Britain faced an acute shortage of deep-sea container capacity if the government blocked major projects.

Felixstowe is the third project approved by the British government in the past nine months and will boost the United Kingdom's container-handling capacity by 7 million TEUs a year. Other ports are planning new box terminals, including Bristol and Teeside, which, if approved, will boost annual capacity by a further 3 million TEUs.

Transport Minister Derek Twigg said a container terminal at Felixstowe would be reconfigured as a deep-sea port and a little more than one-half of a mile of quayside would be added under the proposal by Hutchison.

Hutchison won approval in December to build a $535 million, 1.7 million-TEU capacity box terminal at Harwich, a ferry port directly opposite Felixstowe.

The government last year approved plans by P&O Ports for a $1.5 billion, 3.5 million-TEU container complex and distribution hub at the mothballed Shell oil refinery on the River Thames near London.

Hutchison Port Holdings agreed to buy 49 per cent of Lyttelton Port
14 February 2006
South China Morning Post

Hutchison Port Holdings agreed to buy 49 per cent of Lyttelton Port from its majority shareholder, Christchurch City Holdings, pending regulatory and shareholder approval.

Hutchison will pay NZ$2.10 ($11.06) each for 19.42 million shares, a 13.8 per cent premium on their average trading price over the past six months.

The deal is also pending Christchurch City's purchase of all the voting shares in the managing company it does not have under its 69 per cent equity stake.

Lyttelton is a small port on the outskirts of the South Island's main city of Christchurch. Most of its revenue comes from one container berth, through which it moved about 177,000 boxes in the financial year to June.

It supplements that revenue with coal and dry-bulk businesses but its infrastructure will need upgrading to compete with other ports in the region.

"We expect maintenance costs to remain at a high level for the next two to three years," the management company's chairman Barney Sundstrum said in August.

Last year, the firm paved the way for yesterday's offer by striking a three-year labour contract with union dockworkers, introducing a third shift and boosting box volumes 10 per cent year on year.

It nevertheless has been getting squeezed by shipping lines, which play regional ports against each other to negotiate the lowest possible port-side costs.

Revenues rose 7.6 per cent in the past financial year to NZ$66.5 million but earnings dipped to NZ$11.8 million.

The port boasts China Ocean Shipping (Group), Maersk unit P&O Nedlloyd and Japan's Nippon Yusen Kaisha as customers.

The offer is to be taken to the management company's shareholders on March 8 with a close of April 10.

"It's a fairly mum-and-dad-type shareholding; there are no large shareholders," a lawyer involved in the deal said. "The advice [Christchurch City] has been given is that there don't appear to be any roadblocks to the deal."

The Port, The Billionaire, and Beijing
1 March 2006
Dominion Post

CHRISTCHURCH Mayor Garry Moore has dismissed concerns from residents opposing Hong Kong billionaire Li Ka-shing's planned investment in the Port of Lyttelton.

However, council lobby group Christchurch 2021 has demanded a formal public consultation on the proposed change in ownership of the port, a key asset.

Christchurch residents have written to media about Li Ka-shing, the world's 19th-richest man, and his company's intended investment in Lyttelton Port Company via Hutchison Port Holdings. They say he has links with the Chinese government and army.

Mr Moore said the concerns seemed to be centred on misguided views about Mr Li, including those put forward in a testimony in 1999 by a single United States congressman.

Under the council-HPH joint venture plan, the council is offering $2.10 a share to secure the 31 per cent of the publicly listed company it does not already own. The council will then sell down to 50.1 per cent ownership with the balance held by HPH.

Christchurch 2021 chairman Carl Pascoe said he had received questions of concern about the proposed deal -- especially the reduced ownership by the council.

In response, CCHL chief executive Bob Lineham said HPH would have to run the port under New Zealand law and was "coming in as a shareholder . . . the city is maintaining control of the asset".

The issue of a public consultation had been rejected after legal advice, given control was maintained. "If we were to do public consultation we would not get an arrangement like this because you can't conduct a takeover of a company and a major sale to an overseas enterprise in the middle of a public consultation. The issue is far too complex for that."

HPH executive director Mark Jack said those questioning the motives of Mr Li and HPH should examine the company's track record and corporate structure.

"Christchurch city didn't discuss with us in detail about their detailed due diligence but they certainly did quite a study on their options and I believe looked at Hutchison's record internationally before coming to any decisions," he said.

Mr Jack said in terms of concerns about foreign ownership, the council still held a majority of the port.

He said: "If you look globally around the world it is perfectly evident that the shipping lines are forming larger and larger blocks, which are putting a lot of pressure on ports throughout the world and New Zealand is no exception to that."

Working for Mr Li within a publicly listed group was working "very much along the lines of any Western company", Mr Jack said.

"The only advantage as we see it is the company has absolutely no problems in terms of raising finance to do anything and is in a position to move very quickly."

Once concerned onlooker is Christchurch resident Gerald Hunt, who sent The Press a copy of the testimony by Dana Rohrabacher to a US Senate Armed Services Committee surrounding security of the Panama Canal.

Mr Rohrabacher noted that Hutchison had leases on ports at both the Atlantic and Pacific Ocean ends of the canal.

"Li Ka-shing and his Hong Kong-based company and subsidiaries are closely associated with the Beijing (government) regime and have a history of acting as sources of funding or acting as intermediaries in deals for the People's Liberation Army," the congressman said in the testimony.

Mr Moore said such worries seemed to come from "conspiracy theorists".

Oman: Sohar primed as an export platfrom
1 March 2006
Economist Intelligence Unit - Business Middle East

The Sohar industrial port is the centrepiece of the Omani government’s effort to diversify the economy. It is now starting to deliver results

The project is located 250km north of Muscat, and 180km from Dubai, and aims at creating a port with an industrial base, set around a refinery and a heavy industrial complex, including metals and petrochemicals. The sponsors intend to carve an industrial export niche for Oman and thus allow it to diversify production away from hydrocarbons. With a number of major units ready to start operations later this year, the zone has already attracted some US$10bn in investment.

The project began in 2002 as a joint venture between the Omani government and the Port of Rotterdam in the Netherlands. The former provides land and infrastructure investment (including the construction of the oil refinery). The latter will provide management expertise in the running of the port. Together they form the Sohar Industrial Port Company (SIPC), which acts as harbour master and landlord to the industrial concessions and service providers in the port and industrial zone. SIPC has a 25-year concession agreement with the Omani government and works using a landlord system. SIPC is in charge of the overall industrial and commercial development of the port, while the day-to-day running is the concern of the various private-sector licensees.

The port will be divided into three terminals—a multi-purpose terminal for general cargo, run by Rotterdam-based Steinweg (operational since April 2004); a container port, run by Oman International Container Terminal (a joint venture between Hutchinson Port Holdings of Hong Kong and local investors; first construction completion due in mid-2006); and a liquids terminal, run by Oman Oil Tanking Company (owned by Oil Tanking of Germany, and Odjfell of Denmark). The port infrastructure part of the project should be completed by end-2006.

The industrial section is based around the US$1.3bn Sohar refinery, which is set to come on stream in the next two to three months. It will provide fuel for the energy-intensive metal industries, and polyethylene, polypropylene, ethylene, and aromatics to the plastics and chemicals industries. Another US$550m is going towards the creation of the Sohar Power Company, which will be the largest independent water and power project in the country.

The two major metal-based industries are steel and aluminium production. There are two steel manufacturers—Sharq company, which will be processing scrap metal, and the UAE-backed Shadeed company which will be importing iron pellets to transform them into steel. The aluminium smelter is a US$2.2bn joint venture between Oman Oil Company (OOC; 40%), Abu Dhabi Water & Electricity Authority (40%), and Alcan of the US (20%). The downstream petrochemicals industry is divided into gas- and oil-based processing. The former includes ammonia/urea plants and methanol, while the latter focuses on polyethylene and polypropylene. Amongst these includes the largest industrial project to date—a US$3.4bn polyethylene joint venture between OOC and US-based Dow Chemical (called Oman Petrochemicals Industry).

The Achilles heel of the Sohar complex is reliance on gas, both domestic and, in future, imported from Qatar via the Dolphin pipeline. The IMF, for example, has raised queries about whether gas-based industries remain viable if they relied on imported gas. The presence of substantial multinational investors suggests that such concerns may be overstated—these firms appear to be confident that Oman will prove to be a good location from which to export intermediate goods to booming Asian markets.

Lyttelton Port offer too low, says the market
Michelle DaCruz
7 March 2006
New Zealand Herald

The sharemarket is sending a clear message to Christchurch City Holdings: Its takeover offer for Lyttelton Port is too low.

The port's shares closed at $2.20 yesterday. That is a 10c premium to Christchurch City's $2.10 a share bid for the 31 per cent of the port it does not already own. Since the takeover was announced on February 13, the shares have been steadily increasing in value from a price of $2.11 before the deal was made public.

If the Christchurch City bid succeeds, it will delist the port and sell a 49 per cent stake to Hong Kong-based port operator Hutchison Port Holdings for $2.10 a share or $107 million.

Not only investors, but some market analysts, also see the bid price as weak.

After Lyttelton Port's better-than- expected half-year result this month, Goldman Sachs JB Were analyst Marcus Curley called the bid ``a relatively low offer price''. The port's adjusted net profit was up 12 per cent on last year to $5.4 million, beating Curley's forecast by 8 per cent.

He said fair value was $2.26 to $2.57 a share.

``Based on our revised earnings estimates and takeover multiples for Port of Auckland activities, we now believe fair value for 50 per cent of Lyttelton Port is $2.26 to $2.57 per share,'' said Curley. ``In other words, the strong first-half 2006 result has added 6c per share to our strategic valuation of Lyttelton Port.''

Hamilton Hindin Greene partner Grant Williamson said his firm and the market see the offer as ``too light''.

``From our point of view and from the market's point of view, I think $2.10 is not sufficient in order for them to get to that 90 per cent threshold they need,'' said Williamson.

If Christchurch City's bid reaches 90 per cent acceptance, the offer will automatically succeed or trigger compulsory acquisition.

``I think Christchurch City Holdings will have to pay a premium to gain control of a strategic asset in the Canterbury region,'' said Williamson.

Investors are still awaiting a target company statement including an independent adviser's report on the offer's merit. The port has commissioned Crighton Anderson Corporate Finance to prepare the report, which is to be sent to shareholders by March 22.

The port's board of directors, headed by chairman Barney Sundstrum, said it would not tip its hand on the bid until the report was released.

The offer opens tomorrow and closes by April 10.

Obstacle looms to Hutchison NZ port deal

WELLINGTON, March 9 (Reuters) - New Zealand's Port Otago Ltd. raised its stake in rival Lyttelton Port on Thursday, to a level where it could block a planned takeover involving Hong Kong's Hutchison Port Co. .

Port Otago increased its shareholding to 10.1 percent from 7.95 percent after a stand in the market at NZ$2.35 a share, trumping a takeover offer from Lyttelton Port's (LPC) majority shareholder of NZ$2.10.

Shares in LPC jumped 1.8 percent to NZ$2.25, their highest level since October 1997.

Last month LPC's 69 percent shareholder, a trading company of the Christchurch City Council, announced a NZ$210 million ($136 million) takeover offer to buy out the rest of the company.

It said it would delist LPC and sell a near-half stake to Hutchison, which would also operate the port.

However, Port Otago's shareholding is now large enough to block any move to force minority shareholders to sell and delist the company.

Lyttelton, based near the city of Christchurch, is the South Island's biggest port. Port Otago is the South Island's second biggest port, near Dunedin, and is controlled by local bodies.

Both ports have container and conventional cargo handling operations and at times have vied to attract shipping services.

Hutchison, a port-to-telecoms conglomerate of Hong Kong tycoon Li Ka-shing, is the world's largest container port operator. ($1=NZ$1.54)

Ecuador : Hong Kong's Hutchinson Interested In Manta Port Ops
16 March 2006

QUITO (Dow Jones)--The Chinese port group Hutchison Port Holdings, or HPH, has expressed interest in administering, modernizing and operating Ecuador's Manta port, with an investment of around $523 million during a 30-year concession, Trajano Andrade, President of Manta Port Authority, or APM, responsible for the bidding process said Thursday.

"We had received this proposal from HPH, which now has a 20% of the required points for the qualification in a bid that we hope to release next month," Andrade told Dow Jones Newswires in an interview.

Andrade also said that the proposal from HPH overcomes the estimation of APM to receive offers with an investment for around $290 million.

The National Modernization Board should approve the feasibility studies before the bidding.

"We hope to conclude the whole process until July and in August to sign the contract with the company that presents the best offer for the country", Andrade said.

If APM doesn't receive other offers, the concession will be awarded to HPH.

As part of the modernization, the international jetty would be enlarged from 700 meters to 1,200 meters.

According Andrade, once modernized, Manta could become in the main port of international load transfer of the South Pacific, because it has an open sea terminal, with four jetties that don't need to be dredged and can operate 365 days a year.

Another of the competitive advantages of the Manta port is its privileged location, 25 miles from the international traffic line, a key factor to develop the commercial exchange among the Latin American countries and from these to Asia, the U.S. and Europe.

Hong Kong firm defends plans to help screen U.S.-bound ships for terror threats
By WILLIAM FOREMAN
25 March 2006

HONG KONG (AP) - Hong Kong conglomerate Hutchison Whampoa Ltd. on Saturday defended a plan to help scan U.S.-bound cargo for terror threats at a port in the Bahamas, where American customs agents will not be present, saying it's not feasible or practical for U.S. officials to work in ports across the globe.

The best option for the United States is to rely on trusted agents using sophisticated inspection equipment to scan shipments at ports abroad, said John Meredith, group managing director for Hutchison Port Holdings, Hutchison's maritime subsidiary and the world's largest ports company.

The Hong Kong company is in the final stages of being awarded a no-bid, US$6 million (euro5 million) contract from the U.S. to help run a sophisticated radiation detector at the Freeport Container Port in the Bahamas, just 65 miles (105 kilometers) from the American shoreline.

Some U.S. lawmakers and security experts have expressed concerns about the deal because American customs agents won't be working with the equipment, designed to detect smuggled radioactive materials.

Among concerns is that a low-paid employee might be vulnerable to bribes and provide terrorists with information about how the equipment works and which material triggers alarms, experts said.

But Meredith told The Associated Press his firm has elaborate security checks, including filming inspectors checking the containers.

Meredith said the U.S. can't afford to post its own customs agents in ports all over the world. Even if the U.S. agents were abroad, they wouldn't have jurisdiction and would be restricted by local laws, he said.

However, U.S. customs inspectors already work at 43 foreign ports helping to inspect and scan cargo with the permission of foreign governments under a U.S. port-security program known as the "container security initiative." Some of the 43 ports are operated by Hutchison, and each of these ports has radiation scanners. Cargo that flows through such "CSI" ports is expedited through American security procedures once it reaches U.S. shores.

At these 43 ports, cargo scanning and inspection is done by local government customs agents, but U.S. customs inspectors work alongside them, said U.S. Customs and Border Protection spokeswoman Kristi Clemens.

"We accompany them or do it in conjunction with them," she said. "It is the foreign port operator's equipment, but we must be allowed to also inspect the cargo that is being transshipped."

Customs security procedures at the sprawling Bahamas port are not rigorous enough to qualify it for participation in the U.S. customs security program, and so American agents are not allowed to work there.

Meredith said that since the September 2001 terror attacks in the United States, Hutchison has been at the forefront of the movement to protect shipping lanes from terrorist threats. He said the company -- which is among the shipping industry's most respected -- has played a key role in pushing for more advanced X-ray and radiation-detecting systems.

"We've been doing it because we think it's a good thing to do, but we don't like to get kicked in the teeth doing it," Meredith said.

Meredith said that if the U.S. government doesn't want to trust "friendlies," or inspectors from responsible companies and governments, to screen shipments, then it would have to build its own offshore inspection sites. That would be far too expensive, he said.

Another option would be not to inspect cargo until it arrives at U.S. ports, but that would risk an attack on the American coast, he said.

Hutchison's billionaire chairman, Li Ka-shing, has substantial business ties to China's government that have raised U.S. concerns over the years. But Meredith said Li's relations with Chinese leaders shouldn't be a problem.

"It's unfair to go and chop a guy up because he knows people," he said. "He's a 100-percent self-made businessman. He's respected by heads of state everywhere."

U.S. Sen. Charles Schumer, a Democrat from New York, toured Hutchison's port in Hong Kong on Saturday and said he was impressed with the equipment and how it was operated.

"The technology is there and we've seen it first hand," Schumer said. "It is impressive and it does the job. They have a program where every container can be inspected for nuclear weapons, can be scanned."

Schumer, who raised early questions about the Bahamas contract, said he does not oppose awarding the contract to a foreign company. But he believes U.S. customs agents should be stationed at the Bahamas port.

"The Bahamas basically said no and we sort of shrugged our shoulders to have customs agents in the Bahamas just overseeing things," Schumer said. "We ought to push harder to do that."

------

Correspondents Sylvia Hui in Hong Kong and Ted Bridis in Washington contributed to this report.

Will Hutchison retain its World's top port operator title in the coming years as DPW acquires more ports and possibly a mainland chinese competitor?

Will Hutchison retain its World's top port operator title in the coming years as DPW acquires more ports and possibly a mainland chinese competitor?
DPW is still third in the world even after these acquisitions. The problem is after P&O, there are few large terminals available for purchase en masse, so operators will need to either buy smaller ones piecemeal or develop their existing facilities to handle more traffic. DPW paid quite a premium for their Hong Kong acquisitions last year. Whether such price ratios are sustainable in the long run are questionable. They have a chance of moving into 2nd place though.

DPW is still third in the world even after these acquisitions. The problem is after P&O, there are few large terminals available for purchase en masse, so operators will need to either buy smaller ones piecemeal or develop their existing facilities to handle more traffic. DPW paid quite a premium for their Hong Kong acquisitions last year. Whether such price ratios are sustainable in the long run are questionable. They have a chance of moving into 2nd place though.

Does China have a national port operator or something? Hutchison controls most of China's ports right?

Got any stats on the top 5 port operators? And how much separates each of them. THANKS!

Yesterday the first container was discharged from the first ship served at Hutchison's new container terminal in Europe - GCT in Gdynia (Gdynia Container Terminal).

The ship was ENFORCER chartered by CMA CGM. Discharging started yesterday at 15:30. This evening the ship was still moored at the terminal and loading operations were seen. It is quite a long time as for serving thus not too big ship. but I understand the new container terminal is learning...

Ports help Hutchison
Bloomberg News
24 March 2006

Hutchison Whampoa, which owns the world's largest port operator, said Thursday that 2005 profit from managing container terminals rose 14 percent as cargo shipments increased. Hutchison Port Holdings had 10.2 billion Hong Kong dollars, or $1.3 billion, in profit before interest and taxes last year, compared with a restated 8.96 billion dollars in 2004. Sales rose 11 percent to 29.9 billion dollars. Hutchison, which operates 247 berths in 42 ports, said it handled 51.8 million standard 20 foot, or 6 meter, containers last year, an increase of 8 percent from 2004. The company is investing more in cargo terminals to meet rising demand. It formed a venture last year to manage the second phase of the $16 billion Yangshan deep-water port in Shanghai. Hutchison Port and four other companies, including A.P. Moeller-Maersk, will invest 4 billion yuan, or $498 million, to build four berths in Yangshan, which will double the eastern Chinese port's cargo capacity by 2010.

The company is expanding its container-handling capacity at Yantian in Shenzhen and it is building its first dry-bulk cargo terminal in the eastern Chinese port of Dalian. Hutchison Port's shares are not publicly traded. Hutchison Whampoa's shares fell 0.2 percent to 72.85 dollars in Hong Kong before the earnings were announced.

Hutchison Port and PSA International of Singapore are among the managers of container ports that benefited from Asia's growing economies and a 28 percent surge in 2005 exports in China. An estimated 80 percent of global trade is carried by sea.

"China is providing a significant growth engine" for Hutchison Port's business, said Peter Hilton, an analyst for Credit Suisse in Hong Kong, who rates Hutchison Whampoa "outperform." He said ports would continue to be a focus for the company.

The Chinese port of Yantian reported a 21 percent increase in 2005 cargo traffic. Growth at the company's cargo operations in Rotterdam was 12 percent. Growth was 49 percent in Xiamen in eastern China and 14 percent in Port Klang in Malaysia. Its Panama container port terminal had a 54 percent increase in traffic last year, Hutchison Port said.

Hutchison Whampoa's profit in 2005 rose to 14.3 billion dollars from a restated 13 billion.

Does China have a national port operator or something? Hutchison controls most of China's ports right?

Got any stats on the top 5 port operators? And how much separates each of them. THANKS!
Source : Forbes
http://www.forbes.com/business/2006/03/01/ports-dubai-development-cx_pm_0228dubaiports.html

DP World's $6.8 billion bid for the Peninsular and Oriental Steam Navigation Company would complete the global geographic chain for Dubai Ports, filling in the missing link to North America. (Note : opposition in the US has forced DPW to sell off some of its American operations)

The combined group would have a capacity of 50 million TEU across 51 terminals in 30 countries, including the six at issue in the U.S. In addition, there is the London Gateway project in the P&O pipeline, slated to become the largest container terminal in the U.K., which when completed would raise the P&O's current 15 million TEU capacity to 31 million TEU.

The P&O deal would make Dubai Ports the world's third-largest ports operator, behind Li Ka-shing's Hutchinson Whampoa's ports business and the Singapore government's PSA (which lost out in the bidding for P&O), and leapfrog it over China's state-run COSCO and over APM Terminals, part of the AP Moller-Maersk transportation group, which is based in Copenhagen, Denmark.

Karachi keeps the upgrade process moving
Previous lack of investment has been reversed in a continuing effort to reduce congestion and speed up turnround times
23 March 2006
Lloyd's List

OVER the past few years, port infrastructure in Karachi, which has in the past suffered from a lack of investment, has been significantly upgraded and this process is continuing.

Managed by the Karachi Port Trust, Karachi port is of vital national importance as it handles about 75% of the country’s cargo, so alleviating port congestion and speeding up vessel turnround times is a strategic priority.

One of the key strategies of the KPT has been to undertake dredging to improve access for larger vessels, and now a further deepening of port is planned. The channel is reportedly being dredged initially to 13.5 m depth, to allow access to 12 m draught vessels at all tides, while there are longer term plans to dredge to 16.5 m up to the Keamari Groyne area, where KPT would like to build a transhipment-orientated container terminal at some point in the future.

According to KPT, this project will reduce turnround times for mother vessels and will be launched on BOT basis “in due course of time”.

Until relatively recently, container vessels calling at Karachi were worked by mobile cranes alongside general cargo piers. This situation has now changed with the development of two dedicated container terminals.

The biggest and longest established of these is Karachi International Container Terminal, which is part of the Hutchison Port Holdings group and which is now handling more than 400,000 teu a year following a recent increase in capacity.

KICT operates 600 m of berth and has four quayside container cranes as well as 12 rubber-tyred gantries. The company has expressed an interest in expanding into two adjacent berths and investing a further $55m. KPT is reported to be considering this offer.

A new, state-of-the-art customs clearance system has recently been implemented at KICT. According to a spokesman for APL, a leading customer of the terminal: “This enables hassle-free customs clearance and so reduced lead time and the cost of handling shipments.”

KICT, which is located in the West Wharf area, now faces competition from Pakistan International Containers Terminal, which is owned by local interests and operates berths in East Wharf.

This facility is also in the process of expansion following its success in building up container throughput.

Last year, a private sector loan agreement for $6m was signed by PICT with the Opec Fund for International Development for the second phase of development of the terminal. The first phase of the terminal included the installation of two quayside gantry cranes, together with landside equipment. The next stage involves the purchase of a third gantry crane and a variety of container handling equipment, as well as new customs and administrative buildings.

There are a number of investment projects outside the container sector which KPT is now seeking to take forward. One of these involves the setting up of a bulk cargo-handling terminal. At present, Karachi is handling about 4m tonnes of fertilisers and dry bulk cargo at various berths. The intention is to create a single, dedicated bulk cargo-handling terminal equipped with specialised dry bulk equipment in the East Wharf area. This would utilise 630 m of quay wall and 215,000 sq m of landside space.

KPT has selected a bidder for this process, a company called Star Terminals, but legal proceedings have delayed the start of the project.

KPT has also outlined plans for a ‘cargo village’ on about 100 acres of land close to the port. This would house container storage, warehousing, logistics and cargo processing activities.

One project that has been completed in the past year is the reconstruction of Oil Pier II in the port by China Harbour Engineering. This has allowed the 1966-built terminal to handle tankers up to 90,000 dwt and has boosted KPT’s liquid product handling capability from 19m tonnes a year to 24m tonnes.

HK's Hutchison bid for NZ port appears over

WELLINGTON, March 30 (Reuters) - Unlisted Port Otago rejected on Thursday an increased offer for its stake in rival Lyttelton Port Company , dashing any hope Hong Kong's Hutchison Whampoa conglomerate had of rekindling a plan to buy into the sector. Lyttelton's majority owner, Christchurch City Council, raised on Wednesday its bid to buy out minority shareholders by 10 NZ cents to $2.20 a share, valuing the South Island's biggest port at around NZ$224 million ($136 million).

But Port Otago, which has built up a big enough stake to block the offer and a proposal by the council to subsequently sell half of Lyttelton to Hutchison, said it would not sell.

"Port Otago acquired its shareholding in (Lyttelton) as a long term investment," Port Otago chairman John Gilks said in a statement to the New Zealand stock exchange. "We want the opportunity of further involvement.

Hutchison Port Co., a unit of billionaire Li ka-Shing's Hutchison Whampoa Ltd. , pulled out of the deal on Wednesday but Christchurch City said it could be revived if it did grab the 31 percent of Lyttelton it does not own.

Port of Otago, around 450 km (280 miles) to the south, raised its stake in Lyttelton port to 10.1 percent this month, blocking the Christchurch council from reaching a 90 percent holding that would have allowed it to compulsorily acquire the rest.

Gilks said Port Otago, the second-biggest South Island port and a competitor to Lyttelton in both container and general freight, wanted a relationship with Lyttelton that would see it play a role in any consolidation ports in the South Island.

Lyttelton also handles much of New Zealand's coal exports. ($1=NZ$1.65)

Hutchison Port Holdings Ltd. gets approval for new container terminal in Britain
31 March 2006

HONG KONG (AP) - The port unit of Hong Kong conglomerate Hutchison Whampoa Ltd. has received approval to develop a new container terminal in Britain.

The British government gave Hutchison Port Holdings Ltd. its final approval Wednesday to develop the new terminal at Bathside Bay in Harwich.

The terminal, the Harwich International Container Terminal, will have 1,400 meters (4,620 feet) of deep-water quayside and a total capacity of 1.7 million 20-foot-equivalent units a year.

Construction work on the first phase of the terminal won't take place until 2009 at the earliest as the company needs to upgrade road infrastructure leading to the terminal, Chris Lewis, chief executive of Hutchison Ports (UK) Ltd., said in a statement on the company's Web site.

Hutchison Whampoa operates 42 ports in 20 countries in Asia, the Middle East, Africa, Europe and the Americas.

Hutchison boss joins US ports security debate
Meredith believes security may be compromised over Washington’s hawkish attitude to foreign terminal operators
19 April 2006
Lloyd's List

HUTCHISON Ports boss John Meredith has warned Washington that its hawkish attitude to foreign terminal operators could jeopardise waterfront security rather than make US ports safer.

The US needs the co-operation of overseas port operators in its drive to tighten security, said Mr Meredith.

Instead, US politicians had sent out a message that that they don’t trust foreign port companies when they objected to DP World’s takeover of P&O’s US assets.

In an interview with the Financial Times, Mr Meredith warned that this could undermine security efforts at a time when the US needs the support of foreign port operators such as Hutchison and DP World in screening inbound cargo.

He noted that many overseas ports are way ahead of those in the US in terms of the technology being used to check containers for illegal contents such as nuclear materials.

“The US is relying on the goodwill of Dubai Ports and other port operators to do the overseas security checks for them,” said Mr Meredith, Hutchison’s group managing director.

However, the furore over DP World does not help gain that co-operation, he told the newspaper.

He went on to say that global port operators were having problems explaining to US politicians how the supply chain works and convincing them the technology already exists to screen containers before they are loaded on to a ship. A pilot system is being trialled in Hong Kong whereby trucks drive through a scanner without stopping.

When US politicians discovered that Hutchison’s Freeport Container Port in the Bahamas was being provided with a straddle carrier fitted with radiation detection equipment by the US government, there was yet another outcry in Washington about the dangers of handing over responsibility for security to foreigners.

That reaction “was completely disproportionate”, Mr Meredith said. “Why not have another security check further down the chain?”

HWL sells stake in HPH and HPI
Corporate Press Release

(Hong Kong, 21 April 2006) Hutchison Whampoa Limited (HWL) announced today that it has signed a sale and purchase agreement to sell 20 per cent effective equity and loan interest in each of Hutchison Port Holdings Limited (HPH) and Hutchison Ports Investments S.à r.l (HPI) respectively to Singapore's PSA International Pte Ltd (PSAI), for a total cash consideration of USD4,388 million (approximately HKD34,000 million).

The Company will realise a profit on disposal of approximately HKD24,380 million upon completion of the transaction, which both parties are endeavouring to close as soon as possible and no later than end of May 2006. The net proceeds from the transaction will be used for HWL's general working purposes.

Commenting on the transaction, HWL Group Managing Director Mr Canning Fok said, "The transaction represents an excellent opportunity to crystallise value for the Company and its shareholders. The terms of this transaction reflect the quality and value of our privately held ports business, setting an attractive benchmark for the Group's remaining interests in the business which we will continue to control and manage. We are pleased that PSAI has decided to take this 20 per cent holding, given PSAI's long-term commitment to the ports industry."

Hutchison is the world's largest private port operator, operating 42 ports in 20 countries.

Friday April 21, 9:17 PM
Singapore's PSA to acquire 20 percent of Hutchison Whampoa port units

SINGAPORE (AFP) - Singapore's PSA International will acquire 20 percent of the port operations of its Hong Kong rival Hutchison Whampoa for 4.39 billion US dollars in cash, the two shipping giants announced.

Hutchison Whampoa Ltd is the world's largest private port operator, operating 42 ports in 20 countries, and is controlled by Asia's richest man Li Ka-shing.

PSA, which is 100 percent owned by state-linked Singapore investment company Temasek Holdings, operates a network of 19 ports in 11 countries.

"This is the biggest investment that PSA has made and it reflects our confidence in these port assets, many of which are in high-volume and high-growth locations," PSA chairman Fock Siew Wah said in a statement.

"We believe this investment will generate good long-term value for PSA and allows us to benefit from a well-diversified spread of assets globally. PSA will continue to expand its global footprint by investing in opportunities that make good commercial business sense to us."

PSA's move followed its failure in February to win control of British competitor Peninsula and Oriental Steam Navigation Company (P and O), which would have created the world's biggest port operator.

Dubai's DP World had offered 3.92 billion pounds (6.9 billion US) to trounce PSA's offer of 3.545 billion pounds.

In a separate statement, Hutchison said the deal with PSA involved a "sale and purchase agreement to sell 20 percent effective equity and loan interest" each in Hutchison Port Holdings Ltd and Hutchison Ports Investments.

Hutchison said it will realise a profit of about 24.38 billion Hong Kong dollars (3.2 billion US) upon the completion of the deal no later than the end of May.

Proceeds from the sale will be used for Hutchison's "general working purposes," the company said.

"The transaction represents an excellent opportunity to crystallise value for the company and its shareholders," said Hutchison Whampoa group managing director Canning Fok.

"The terms of this transaction reflect the quality and value of our privately held ports business, setting an attractive benchmark for the group's remaining interests in the business which we will continue to control and manage."

US credit rating agency Standard and Poor's placed its "AAA" corporate rating on PSA Corp Ltd on credit watch with negative implications following the announcement.

Standard and Poor's "views PSA Corp as an integrated unit of the PSA group, given that its Singapore port operations are strategically important and account for the bulk of group assets and cash flows."

However, the credit risk evaluator said the deal had no impact on the ratings of Hutchison which is already at A minus with a negative outlook.

Hutchison has struggled in recent years due to its heavy investment in its 3G telecom technology units and in February decided not to go ahead with the listing of its subsidiary 3 Italia, in Italy.

Poor consumer take-up has meant Li has had trouble selling his expensive third-generation technology. His Hong Kong company, 3, has proven costly to Hutchison's bottom line.

"The outlook remains negative. Although this transaction results in a net debt reduction, which is an important factor in stabilizing the rating, improving operating cash flow, in particular from its 3G European operations, is also a key issue under surveillance," S and P said.

DBS Vickers sales director Peter Lai said the overall deal was good for both buyer and seller because it meant there would be more joint ventures.

"PSA wants to expand into the terminal business in mainland China, particularly in the north east and south east."

"That is definitely good news for Huchison, the price is very attractive."

Hutchison to develop terminal in Huizhou
27 April 2006
South China Morning Post

Hutchison Whampoa had reached an initial agreement with the government of Huizhou in Guangdong to jointly develop a deep-water container terminal as Shenzhen's Yantian port was approaching its maximum capacity, officials said.

The two sides would hold equal stakes in the project but Hutchison Whampoa would be given full authority to operate the port, Huizhou mayor Huang Yebin said yesterday.

The preliminary agreement for the project which awaits central government approval, was signed on March 31. The Huizhou government will formally submit the project proposal to Beijing soon.

Initially, the terminal would have two berths and could handle one million teu (20-foot equivalent unit) a year, said Mr Huang. It would be expanded in the future.

He said the port was essential for the development of the Pearl River Delta's logistics industry as Yantian port was near full capacity.

"The environment is now ripe. Huizhou has extensive superhighway networks and is close to both Hong Kong and Shenzhen. We have a natural deep-water harbour and no silt problem," he said.

"Hutchison has invested a lot of time and resources into this project. We believe they will bring their rich experience and expertise of managing modern port facilities to Huizhou."

The mayor refused to disclose the total investment amount.

The project was apparently backed by the Guangdong provincial government. Huang Shuming, an official from the Guangdong Development and Reform Commission, said the Huizhou port would not take away business from Shenzhen and Hong Kong ports.

"The container terminals in Guangdong are nearing full capacity. Hong Kong and Shenzhen should still have room for growth."

He said the value of Guangdong's foreign trade would reach US$700 billion by 2020.

Hutchison takes 70pc Barcelona terminal stake for $4.6b
2 June 2006
South China Morning Post

Hutchison Port Holdings, a unit of Hutchison Whampoa, will spend {euro}462 million ($4.6 billion) for a 70 per cent stake in a container terminal in Barcelona, its second investment in the Spanish port hub.

Hutchison Port and Spanish partner Grupo Mestre were awarded the concession by the Barcelona Port Authority yesterday to build and operate the first phase of Prat Pier Container Terminal, which will have three berths when completed in 2008.

Grupo Mestre will own 30 per cent of the terminal, and the two companies plan to spend {euro}660 million in total, according to a spokesperson for the authority.

About {euro}500 million will fund additional facilities with {euro}160 million earmarked for civil works.

The first phase of the project, some 93 hectares of land and 1,500 metres of quay length, is expected to have an annual capacity of more than 2.5 million 20-foot equivalent units (teu), according to the authority's annual report.

"We are delighted to learn about the decision and we welcome the Port of Barcelona as our key port in southern Europe," said John Meredith, Hutchison Port's group managing director.

Additional land has been earmarked for the second-phase expansion, which would increase the port area to 330 hectares, an authority spokesperson said.

"The rest of the expansion will be built according to the demand of throughput," she said.

Hutchison Port, the world's largest port operator, has been expanding globally to maintain its edge over competitors.

The latest investment is Hutchison Port's second in Barcelona.

The company signed a conditional agreement in January with Grupo Mestre to acquire a majority stake in Terminal Catalunya, also a container terminal in Barcelona's port.

Hutchison Port is operating a total of 247 berths in 42 ports located in 20 countries throughout Asia, the Middle East, Africa, Europe and Americas, with throughput volume of more than 51.9 million teu last year.

The Port of Barcelona's traffic was 44 million tonnes and more than two million teu last year, up 11 per cent and 8 per cent respectively from 2004.

Upon completion of the enlargement works, the port will have a capacity of 130 million tonnes and 10 million teu annually.

Trade between Spain and the mainland has increased 30 per cent in recent years in terms of number of containers.

FEATURE-Shippers eye Mexican port as route to US consumers
By Nick Carey and Edgar Ang

CHICAGO/NEW YORK, Aug 10 (Reuters) - Four months after Hong Kong magnate Li ka-Shing's flagship company broke ground to expand Mexican port Lazaro Cardenas, shippers are now eyeing this as a route to bring Asian goods to U.S. consumers.

"We were down there (Lazaro Cardenas) just last week talking to the folks at the port," said Tom Shurstad, president of logistics provider Pacer International Inc. . "This port has a lot of possibilities for us" to haul Asian goods via Mexico to the U.S. Southeast, Northeast and the Midwest via Chicago, though Pacer has no specific plans yet, he added.

Pacer is responsible for 20 percent of U.S. rail intermodal shipments -- intermodal uses standardized containers interchangeable between truck, ship and rail -- with 2005 revenue of $1.9 billion.

Apart from Li ka-Shing's Hutchison Whampoa Ltd. -- operator of the world's top container port in Hong Kong -- which began a $200 million expansion of Lazaro Cardenas in March, giant retailer Wal-Mart Stores Inc. is seen driving plans to turn this backwater port into an additional route for low-cost consumer goods into the United States.

The expansion plan should boost capacity at Lazaro Cardenas to 2 million 20-foot equivalent units (TEUs) annually from 100,000 by 2008, with more capacity to be added later.

This is one of many ports from the U.S. and Canadian West Coast to the U.S. East Coast seeking to gain from rising U.S. imports -- primarily from China as U.S. manufacturing shifts overseas -- and provide an alternative to the congested ports of Los Angeles and Long Beach.

"We need new valves to redistribute those (import) flows," said Armando Beltran, head of Mexican operations for Schneider National Inc., the largest privately held U.S. truck company with 2005 revenue of $3.5 billion. "I feel Lazaro Cardenas is a viable alternative to U.S. ports."

U.S. railroad Kansas City Southern , which controls the port, said earlier this year that Wal-Mart was involved, but the giant retailer has declined to discuss the project.

This railroad in June launched a daily intermodal service from Lazaro Cardenas to Atlanta, with Schneider as its primary customer. Schneider also sees opportunities to move goods into the United States from the port by truck, Beltran said.

EVERY PORT HAS ITS DAY

On and off over the years Lazaro Cardenas has been touted as an alternative route for goods, but little has come of it.

Moving "trans-Pacific container traffic from the West Coast is not new," said Larry Cottrill, Long Beach's master planning manager. "It has been talked about for some time."

But according to University of Tennessee logistics professor Ted Stank, this time may be different.

"Twenty years ago this plan would have seemed crazy," he said. "But now people are investing in it because of the gargantuan imbalance of freight coming from Asia."

And it's not just a question of congestion at Los Angeles and Long Beach -- which handles a combined annual total of about 14 million 20-foot equivalent units (TEUs) -- where lengthy delays are possible, Stank added.

"The United States has lacked a coordinated transport policy" since President Dwight D. Eisenhower's Federal-Aid Highway Act of 1956 created the Interstate System, he said.

With much of that highway system straining under freight loads, bringing goods from Asia to U.S. consumers by rail or on less-used roads from Mexico makes sense, Stank added.

"If Wal-Mart is involved, that would add massive economies of scale," he said.

Although shippers declined to discuss Wal-Mart, both Pacer and Schneider have received awards from the retailer for their intermodal services.

Schneider also signed a contract with Wal-Mart in May to provide services for a huge distribution center the retailer is building in Elwood, Illinois, to serve the Midwest.

"ENOUGH FREIGHT FOR EVERYBODY"

Officials at L.A.-Long Beach seem unfazed by the prospect of competition from Mexico. Long Beach's Cottrill said the two ports have grown by 2 million TEUs annually for the past few years -- the same as the total planned capacity at Lazaro Cardenas -- and their combined container traffic should reach 35 million TEUs annually by 2020.

Long Beach's Cottrill and officials at the Port of Los Angeles attributed most of that expected growth to China's rapid economic rise.

Officials at both ports say while Mexican ports like Lazaro Cardenas may have the advantage of lower labor costs than their Californian counterparts, it will take time to add capacity.

Shippers also said that because of their vast size, the two California ports have nothing to fear because rising imports mean there is room for all ports to grow.

"L.A. (and Long Beach) won't even feel it," Pacer's Shurstad said. "There's enough freight for everybody."

HPH builds on talent to match strategic growth
The ports firm prefers to help existing staff develop the skills it requires rather than hiring new employees
12 August 2006
South China Morning Post

FINDING A BALANCE between the needs of employees and the needs of a rapidly growing company are critical to business success.

Handling more than half of the Kwai Tsing container port activities, Hutchison Port Holdings (HPH) has been working to find such a balance.

Francis Tong, general manager of human resources for HPH, believes that career management is a joint responsibility; employees must play a role in their own development and, in turn, managers play a key role in supporting employees.

So, how does HPH support employees and its business needs? First, the company sets or reviews the strategic direction to determine the skills required for success. Through discussions with managers, critical areas for training and development are identified for individuals.

Because business is growing rapidly, it is important to identify employees for lateral or promotional development and build talent internally rather than hiring new employees, even if occasionally this means taking bets on people.

"Taking risks on people is not a compromise on quality," Mr Tong said.

Mr Tong passionately believes that the most critical component to employee development is ongoing feedback and support by managers.

"Training and development is well beyond just classrooms," he said.

He admits there are management challenges and he and his staff continue to work with HPH managers to address issues.

Since the business environment is increasingly competitive, it has become vital to focus on people as a resource for growth, and manager awareness is a key component in the employee development process.

To support learning on the job, Mr Tong said managers needed to be trained to appraise people and to provide straight feedback. Providing an employee with positive feedback is better than pointing out required improvements. Mr Tong envisions an environment where employees are groomed and developed as a matter of course, and trainees become a natural part of filling the "pipeline" to address business requirements.

HPH outsources most of its training. With a very small human resource department, the use of external expertise is essential. Mr Tong said external training providers, such as business schools, were valuable because they brought best practices learned from their clients and shared this information.

However, the highly technical aspects of the container operation must be taught by HPH personnel. Employees who complete HPH skills training programmes receive certification for the equipment they operate.

HPH has specifically identified the ability to deal with change and ambiguity, and the development of entrepreneurial capabilities and cultural sensitivity as key for managerial success. To develop these skills, managers participate in an assessment centre where they are evaluated on various competencies.

Managers participate in simulations, role plays and other tests in the evaluation process facilitated by an outside delivery agent. Results are shared with the participants. Also, "on an aggregate level", the feedback is provided to Ivey School of Business which uses the information to develop customised training for the managers.

Senior management understands the development process of their managers because they, too, have been through the process. Overall, Mr Tong said the experience had been very positive for both parties. Managers are able to talk openly to their senior managers about areas which need improvement and senior managers are able to communicate to their managers the skills they will improve as a result of the feedback.

According to Mr Tong, all managers in the programme receive feedback on their "blind spots" and their career path but it is important they understand that not everyone can be fast tracked through promotions. Sometimes, managers move laterally across business units to develop different management skills. Mr Tong is pleased with the close partnership with the Ivey School of Business and the quality of the customised learning tools Ivey has developed to meet their business requirements.

At HPH, every business unit manager is accountable for a training budget. In addition, there is a corporate HR training budget covering the needs of the whole group. At present, the value of training is measured through occasional surveys. A gap exists as there is no process available yet to formally track employee participation or success in developmental activities on a group-wide basis.

Chinese company barred from taking part in Indian port project
By GAVIN RABINOWITZ
30 August 2006

NEW DELHI (AP) - India has barred a Chinese company from participating in a project to build a container port in Mumbai, citing security concerns, a senior port official said Wednesday.

Hong Kong-based Hutchinson Port Holdings, a division of Hutchinson Whampoa Ltd., was the only candidate out of 10 that was barred, said Mohana Chandran, secretary of Mumbai Port Trust, the government agency which oversees the bidding process.

Chandran told The Associated Press that "the security clearance for the management contractor, Hutchinson in this case, was denied."

The decision was specific to Mumbai, formerly known as Bombay, not all of India, he said.

"This decision by the government was taken purely for this project and I can't comment on any policy decision," he said.

A Hutchinson official, though, denied the company had been barred.

Earlier Wednesday, the Times of India newspaper reported the Indian government decided to bar all Chinese companies from investing in or managing Indian ports due to security concerns.

If so, that would block Chinese involvement in the construction of 13 planned ports across India, valued at some $13 billion, the Times said.

Officials at India's Shipping Ministry were either unavailable or did not return calls.

Nine other companies received security clearance to bid for the Mumbai project, including Japan's Mitsui OSK, Dubai Ports and Taiwan's Evergreen Marine Corp., said a port official speaking on condition of anonymity because the bids have yet to be opened.

The official said there was an Indian naval base near the port and this is not the first time that Hutchinson Port Holdings has been denied permission for that reason.

However, Hutchinson Port Holdings spokesman Anthony Tam denied they had been barred.

"In regards to India, HPH has not been rejected from participating in any port projects in India and we have in fact taken part in previous bids," Tam said.

"HPH is interested in investing in the country. However, we have yet to identify a suitable investment that would meet our investment criteria."

In recent years, India and China have taken several steps to improve their relations, strained since in a 1962 border war. However, lingering suspicions remain.

------

Associated Press Writer Ramola Talwar Badam contributed from Mumbai.

China's HPH awarded concession to run Ecuador port

QUITO, Ecuador, Sept 7 (Reuters) - Ecuador's Manta Port Authority awarded China's Hutchison Port Holdings (HPH) a 30-year concession to run the key port after it offered to invest $468 million, a port spokesman said on Thursday.

The Chinese firm, part of Hong Kong conglomerate Hutchison Whampoa Ltd. , was the only bidder.

Manta port officials awarded the concession on Wednesday, but Ecuadorean authorities still need to give the final approval for the deal, port spokesman Luis Duenas said.

The company plans to turn the Manta port, located 260 kilometers (161 miles) southwest of Quito, into a deepwater habor to increase shipping trade between Asia and Latin America.

The company wants to increase the port's annual capacity to 1.6 million twenty-foot equivalent units (TEUs) -- a standard industry measure -- from the current 80,000 TEUs.

HPH, the world's largest port operator, is expected to sign the concession contract in about two months, after the country gives the green light to the project, Duenas said.

Indian communists question government's decision to bar Chinese from investing in ports
27 September 2006

NEW DELHI (AP) - The Indian government has come under sharp criticism from its communist coalition allies for not letting Chinese companies invest in the country's infrastructure projects, television reports said Wednesday.

The Communist Party of India (Marxist), whose support is crucial for a parliamentary majority of the governing coalition, wants the government to explain how Chinese investment in infrastructure projects posed a threat to India's security, the NDTV news channel reported.

The criticism followed a recent decision of the federal government canceling a tender to revamp a port in southern Kerala state after a consortium of Chinese companies won the bid, the report said. It didn't name the Chinese companies.

Kerala is ruled by a Communist coalition, but the power to decide about ports rests with the federal government.

Officials at India's shipping ministry could not be reached for comment.

Last month, the federal government barred Hong Kong-based Hutchison Port Holdings from participating in a project to build a container port in Mumbai. At the time, the shipping ministry said Hutchison was not given a "security clearance."

India and China have remained suspicious neighbors for decades after a brief border war in 1962. But ties have improved in recent years following a surge in trade and investment between the world's fastest-growing economies.

Still, Chinese companies complain they face more hurdles than other foreign companies while doing business in India.

The NDTV report quoted Prakash Karat, the leader of the Communist Party, as saying the decisions to keep Chinese companies out of the port projects were not in line with the present government's foreign policy that seeks closer ties with Beijing.

"What is the reason why Chinese companies have been blacklisted in infrastructure development in India?" he asked, adding that he doesn't see China as a threat to India's security.

Hutchison says to form Vietnam container port JV

HONG KONG, Feb 14 (Reuters) - Hutchison Port Holdings Ltd. (HPH), the port operating arm of Hutchison Whampoa Ltd. , said on Wednesday it will take a majority stake in a joint venture to build and operate a container terminal in Vietnam.

Saigon International Terminals Vietnam Ltd, a joint venture between Hutchison Port and Saigon Investment Construction & Commerce Co. Ltd., will develop the terminal with a quay length of 730 metres and a total yard area of 33 hectares (81.54 acres) in Vietnam's Ba Ria Vung Tau province.

The company would not give financial details on the joint venture. Shipping analysts estimated the terminal could house two berths with an investment of US$200 million.

Hutchison Port operates 257 berths in 45 ports around the world.

Hutch unit plans first with Vancouver terminal bid
Hong Kong Standard
Thursday, February 22, 2007

Hutchison Port Holdings, a unit of the Li Ka-shing-controlled Hutchison Whampoa (0013), plans to bid for a new container terminal near Vancouver, according to Canadian media reports.

Patrick McLaughlin, director of planning and development for the Vancouver Port Authority, confirmed that Hutchison - the world's largest port operator - is among companies interested in the Terminal2 project at Roberts Bank.

He said Li's company is creating the most buzz.

"We want to start this by going to the international community and say, `we've heard you're interested, we need to confirm that,' and from that, pick someone who is interested in being a partner in this process," McLaughlin was quoted by The Vancouver Sun as saying.

He said the port authority will invite companies to submit expressions of interest within two months.

"By the end of the year, we hope to have a business partner," he added.

Hutchison operates 46 container terminals in Asia, Europe, Central and South America, and the Middle East, but does not have a presence in North America, so the Roberts Bank project would give it a foothold in the market there. At present, the Hutchison group controls Calgary-based Husky Energy, one of Canada's largest integrated oil and gas companies.

The Terminal2 Project is the second phase of the Roberts Bank Container Expansion Program. The terminal, located close to Deltaport, which was sold last year by Orient Overseas International (0316) to the Ontario Teachers' Pension Plan, will have the capacity to handle 1.9 million container boxes annually, according to the Vancouver Port Authority.

The new project will include land for terminal infrastructure development, a wharf to accommodate three shipping berths, on-site container storage and internodal facilities. The entire expansion project is estimated to be worth C$1 billion (HK$6.7 billion).

Hutchison Port said Thursday the company's policy is to "not comment on our future port development plans."

Earlier this month, the company said it signed a joint-venture deal to build and operate a container terminal in the Vietnamese province of Ba Ria-Vung Tau.

Hutchison Whampoa shares closed Wednesday at HK$79.70, up 10 HK cents or 0.126 percent.

Hutch JV wins rights to Turkish port
Reuters, Bloomberg

A consortium including conglomerate Hutchison Whampoa (0013) and Turkey's Global Investment Holding made the winning bid of US$1.275 billion (HK$9.95 billion) Thursday for the operating rights to Turkey's Izmir port.

Privatization Administration vice president Hasan Koktas said in a live auction broadcast that the consortium, which also includes Turkish port operator Ege Ihracatci Birlikleri, beat three foreign and local bidders. The three-way venture beat out unlisted Turkish firm Celebi Holding, which services airports in Turkey, to win the auction Thursday in Ankara. The winner will have the right to operate the port for 49 years, said Koktas.

The price is far above the US$775 million paid for Turkey's Mediterranean port of Mersin last year and is welcome foreign investment for Turkey, which needs foreign inflows to offset a large current account deficit.

Several privatizations have been postponed or altered in an election year and this deal was delayed three times.

Competing for the port deal were a consortium of Australia's Babcock and Brown, Singapore's PSA and Turkey's Akfen, and another including Turkish port operator Alsancak and Egyptian- owned cement firm Baticim Bati.

Shares of Hutchison Whampoa gained 70 HK cents or 0.92 percent Thursday to close at HK$76.50.

China's Yantian to sell control in jv to Hutchison

SHANGHAI, May 31 (Reuters) - Yantian Harbour Co. Ltd. said Hutchison Whampoa would become the controlling shareholder of a joint terminal operator in south China after a stake sale.

Yantian has agreed to sell 23.33 percent stake in the venture, set up in late 2004, to Hutchison, it said in a statement, but gave no pricing details.

After the deal, Hutchison will control 65 percent of the tie-up, capitalised at 1.0 billion yuan ($130.8 million), with Yantian holding the remainder. ($1=7.645 Yuan)

Port operators vie for space in China's Pearl River Delta
13 September 2007
The Wall Street Journal Europe

HONG KONG -- The scramble by port operators to invest in the bustling wharves of southern China is evident even in the smallest of deals -- like Hutchison Port Holdings' latest, an incremental purchase in the biggest port of China's busiest manufacturing region.

Hutchison, the world's largest operator of container terminals by volume handled, plans to spend 270.63 million yuan ($36 million) to increase its share of Shenzhen Yantian West Port Terminals Ltd. to 65% from 41.7%, according to a filing made to the Shenzhen stock exchange. This follows a similar, though much bigger, expansion in the Pearl River Delta by rival APM Terminals, a unit of Danish shipping group A.P. Moeller-Maersk and the world's No. 2 port operator.

The companies are maneuvering as a surge in trade threatens to squeeze container terminal capacity in many ports world-wide.

The container-port industry has experienced "an unprecedented and extraordinary level of [merger-and-acquisition] activity" in the past 18 months, says Neil Davidson, a research director at Drewry Shipping Consultants Ltd. of London.

Hutchison Port Holdings, a unit of Hong Kong conglomerate Hutchison Whampoa Ltd., was the first international port operator to invest in mainland China. It now operates 11 container terminals there as well as facilities in Hong Kong, a special administrative region of China.

Yantian, in the Pearl River Delta, is a major port complex for Shenzhen and a gateway for exports from the manufacturing region centered in southern China's Guangdong province. It is a constellation of port assets, and operators are always jockeying for position.

Both Hutchison and APM are banking on continued growth in container volumes. These terminals have eroded nearby Hong Kong's share of the traffic in containerized exports from this region, thanks to their being closer to factories in southern China.

---

Yvonne Lee contributed to this article.

Hutchison Whampoa:Ports Unit Has Bid For Sri Lanka Terminal
17 October 2007

HONG KONG (Dow Jones)--Hong Kong's Hutchison Whampoa Ltd. (0013.HK) said Wednesday its ports unit has submitted a bid to build a shipping terminal in the Sri Lankan capital of Colombo.

Lily Chan, spokeswoman for Hutchison Port Holdings Ltd., said the company is bidding for the Colombo South Harbour terminal project, but declined to give a bid price.

Apart from Hutchison Whampoa, Singapore's PSA International, France's CMA CGM SA, and Sri Lanka's John Keells Holdings Ltd. (JKH.SL) have also submitted proposals to construct and operate the terminal, a person familiar with the matter told Dow Jones Newswires Wednesday.

The person said a contract is likely to be awarded in November and will be valued around US$400 million.

Hutchison Unit To Raise Yantian Port JV Stake For CNY270.6M
23 October 2007

HONG KONG (Dow Jones)--Ports-to-telecommunications conglomerate Hutchison Whampoa Ltd. (HUWHY) said late Tuesday one of its units will raise its stake in a joint venture at Shenzhen's Yantian Port for CNY270.6 million.

Hutchison Ports Yantian Ltd. will raise its stake in Shenzhen Yantian West Port Terminals Ltd. to 65% from 41.67% on completion of the deal, Hutchison Whampoa said in a statement to the Hong Kong stock exchange.

Hutchison said the acquisition will be financed by internal resources.

The stake held by the other partner in the venture, Shenzhen Yantian Port Holdings Co. (000088.SZ), will fall to 35% from 58.33%.

The joint venture principally engages in the development, operation and management of a berthing terminal at Yantian Port.

Pakistan's Deep Sea Container Terminal to Make Karachi Vital Hub

ISLAMABAD, Nov 13 Asia Pulse - Pakistani president General Pervez Musharraf says construction of US$1 billion Deep Sea Container Terminal at Karachi would turn Pakistan into a major transhipment hub for regional states, further bolstering the country's trade and commerce.

Speaking after the signing ceremony between Karachi Port Trust (KPT) and Hong Kong-based Hutchison Port Holdings (HPH), at Aiwan-e-Sadr, he said the government has also decided to set up facilities for ship building and repair at Gwadar deep seaport.

The terminal assures minimum royalty payment of US$1.1 billion to KPT over 25 years concession period. Of ten draft berths at 18 meters depth four will be completed by the year 2010. Under public-private partnership Build, Operate, Transfer concession will be for an initial period of 25 years. HPH will be required to develop the site into a full-fledged modern container terminal with capacity of 3.1 M TEUs.

President Musharraf said Pakistan would be one of few countries in the region to provide shipbuilding and repair facilities. The terminal will be able to accommodate some of the largest ships operating. Pakistan serves as hub for trade between Central Asian Republics, Western China, the Middle East, Africa and Europe. "Our strategic location will be used for trade, commerce, which will be beneficial for the country and entire region. We will be on the world map of ship building, repair and deep sea container handling in three to four years time," the President said.

The terminal will be comprised of US$457 million of Foreign Direct Investment and the remaining US$550 million will be provided by KPT to develop infrastructure for Phase-I. The Chairman of KPT Vice Admiral Ahmad Hayat noted that the total expected income stands at US$3.5 billion in same period. He said the first vessel is expected to sail into new terminal by 2010. It will also have a road, rail link with rest of country, including a proposed cargo village. He said Karachi port would be able to handle the longest and deepest vessels that may wish to access the port. In Phase I, the terminal will be able to handle Super Post Panamax Container Ships.

HPH is one of the world's largest container terminal operators and handled 59.1 M TEUs worldwide, of which 13.1 M TEUs were transhipment. It operates 257 berths in 45 ports in 23 countries.

(PPI)

26/Nov/07
Press Release
HPH Launches New US$244 Million Facility at Port of Lazaro Cardenas, Mexico

http://www.hph.com/images/news/lct-26nov07-1.JPG
Felipe Calderon (right), President of Mexico and John Meredith, Group Managing Director of HPH, exchange conversation during the grand opening ceremony of LCT’s new container-handling facility

http://www.hph.com/images/news/lct-26nov07-2.JPG
Aerial view of LCT’s new container-handling facility


[November 26, 2007 – Hong Kong] Hutchison Port Holdings (HPH), the world’s leading port investor, developer and operator, is pleased to announce the grand opening of the Phase I Expansion of Lazaro Cardenas Terminal Portuaria de Contenedores (LCT) at the Port of Lazaro Cardenas, Mexico.

In commemoration of this special occasion, a quay-side celebration was organised on November 23 at LCT in the presence of His Excellency Felipe Calderon, President of Mexico and John Meredith, Group Managing Director of HPH. The event was attended by over 500 guests including senior Mexican government officials and senior executives of the maritime industry.

President Calderon praised the swift development of LCT and said, “It brings a much-needed deep-water container-handling facility to the country and will provide strategic links to global carriers by facilitating the movement of cargo between the Pacific region and the Mexican hinterland. The expansion enhances the Port of Lazaro Cardenas’ unique advantages, which will attract the necessary investment to develop other peripheral logistics services.”

Commenting on the expansion programme, John Meredith, Group Managing Director of HPH, said, “HPH first invested in the Port of Lazaro Cardenas in 2003 when we reopened a single-berth terminal, and made a commitment to transform and expand this terminal into a modern container-handling facility. We have already enjoyed some significant achievements in the past few years.”

Mr. Meredith continued, “With the completion of the Phase I Expansion, LCT is now a world-class container terminal which is outfitted with the latest handling equipment, capable of receiving the largest vessels afloat. All these port infrastructure developments, which are unprecedented in Mexico, have generated thousands of direct and related employment opportunities for people living in Lazaro Cardenas, supporting the economy of the State of Michoacan.”

The expansion programme includes the construction of a new 600-metre quay, a yard area of 48 hectares incorporating additional 250 reefer plugs, and an area of 7,000 square metres for a container freight station (CFS). It also covers the modernization of intermodal connections to facilitate more efficient cargo movement through the port to other cities in Mexico and to the southern United States border by rail. In addition, a dedicated area has been set up for railroad, truck and reefer cargo customs inspection.

Currently, 350 metres of the new quay are operational, with the remaining 250 metres scheduled for completion by April next year.

Upon completion of all phases, the new LCT terminal will have four berths with a continuous quay length of 1,425 metres, a total yard area of 122 hectares and depths alongside up to 18 metres.

Hutchison to develop plan for Irish port

DUBLIN, Jan 15 (Reuters) - A unit of Hutchison Port Holdings Ltd. (HPH) has been selected to develop a master plan for a new 300 million euro ($446.9 million) deep-water port in Ireland, the groups involved said on Tuesday.

The project, Bremore Ireland Port, is situated between Dublin and the town of Drogheda.

The development is a joint venture between Drogheda Port Company and Castle Market Holdings Ltd.

"Bremore Ireland Port hopes to be in a position to submit a full planning application in the next 12 months," the statement said.

Drogheda Port Company began the development in 2002 as a response to an expected lack of capacity on Ireland's east coast.

The new port aims to accommodate shipping services to the United Kingdom, mainland Europe, Scandinavia and Baltic countries.

Castle Market Holdings Ltd, a wholly owned subsidiary of Real Estate Opportunities (REO), was selected as Drogheda Port Company's joint venture partner after an open tender process. REO is managed by Irish property firm Treasury Holdings.

HRH is the port operating arm of Hutchison Whampoa Ltd. . Drogheda Port Company Chief Executive Paul Fleming said having it on board was a "major asset" for the project.

New port infrastructure a boost for Queensland business
29 January 2008
http://www.portbris.com.au/news/newport
Issued by the Premier of Queensland

A new $530 million project at the Port of Brisbane will provide thousands of Queensland businesses with greater opportunities to take their products and knowledge to the world.

Premier Anna Bligh said Hutchison Port Holdings Limited (HPH) had reached agreement with the State Government to lease two new container berths from the Port of Brisbane Corporation.

“The Port of Brisbane is Australia’s fastest-growing container port and having a global player like HPH come on board is a significant achievement,’’ Ms Bligh said.

“The Port of Brisbane Corporation, with the approval and support of the Queensland Government, will invest more than $530 million over five years in the new Berths 11 and 12 and associated terminals, which will increase Brisbane’s container-handling facility by 25 per cent and take the number of dedicated container wharves at the port to nine.

“Construction has already begun, with Berth 11 expected to be operational by 2012 and Berth 12 in 2014.’’

Minister for Transport, John Mickel said HPH was one of the world’s leading port investors, developers and operators, with a total of 294 berths in 47 ports around the world.

“HPH has interests in 24 countries throughout Asia Pacific, the Middle East, Africa, Europe and the Americas,” Mr Mickel said.

“It is very pleasing to see that the Port of Brisbane Corporation is so forward-thinking in planning for and delivering port infrastructure to meet the demands of South East Queensland’s continued growth.”

In the 2006/2007 financial year, container trade through the Port of Brisbane increased by 14.2%, surpassing the growth of Sydney and Melbourne’s ports for the fifth consecutive year.

Commenting on the latest addition to the existing network of 46 ports, HPH Group Managing Director John Meredith said HPH was pleased to have the opportunity to invest, develop and operate the two new berths at the Port of Brisbane.

“As Australia’s third-busiest container port, the Port of Brisbane plays an important role in facilitating the increasing trade activities between Australia and Asia, particularly China,” Mr Meredith said.

Port of Brisbane Corporation Chairman David Harrison said he was pleased to welcome HPH as a new stevedore at the port.

Hutchison Whampoa 1Q Ports Performance Ahead On Yr - MD
18 May 2008

SYDNEY (Dow Jones)--Hong Kong-based conglomerate Hutchison Whampoa Ltd. (0013.HK) remains confident its various divisions won't be significantly impacted by any slowdown in global economic growth, Group Managing Director Canning Fok said Monday.

Speaking to reporters on the sidelines of the Hutchison Telecommunications (Australia) Ltd. (HTA.AU) annual meeting in Sydney, Fok said that while there has been some slowdown in shipping volumes through its Ports division to the U.S., a recovery is possible, and volumes to Europe remain robust.

He said the Ports division saw a stronger performance in the first quarter when compared to a year earlier, and the company continues to expect double-digit growth from the unit.

Hutchison Whampoa, the world's biggest container ports operator, said its ports division's EBIT rose 13% to HK$12.85 billion on increased throughput in the 12 months to Dec. 31, 2007.

Fok also said the group's retail business is unlikely to be significantly impacted by any slowdown, and could "arguably do even better" as consumers trade down, as being evidenced in Europe.

Hutchison Whampoa's various telecommunications arms are also likely to fare reasonably well, Fok said.

He also said high oil prices bode well for the group's 34.6%-owned energy affiliate Husky Energy Inc. (HSE.T).

At its 2007 results announcement in March, Hutchison Whampoa Chairman Li Ka-shing said he remains confident on all the group's business segments this year, even if there is a slowdown in the U.S. economy, given the global diversification of the company's operations.

Hutchison Consortium Has Highest Thessaloniki Port Tender Bid
22 July 2008

ATHENS (Dow Jones)--A consortium including Hong Kong's Hutchison Whampoa Ltd.'s (0013.HK) ports unit and Greek pharmaceutical group Alapis SA (ALAPIS.AT) offered the highest bid to manage and develop container terminal operations in Thessaloniki, Greece's second largest port, the country's merchant marine minister said Tuesday.

"The process of appointment of the provisional contractor will take place in the next few days, as previously planned," George Voulgarakis said in a statement.

According to the details released separately by the Thessaloniki Port Authority SA (OLTH.AT) and ministry of mercantile marine, the joint offer of Hutchison Port Holdings Ltd., Hutchison Ports Investments SARL, Alapis and LYD SA, totaled EUR3.11 billion - 70% is guaranteed, amounting to a net present value of EUR419.5 million - plus investments totaling EUR489 million for the concession of 30 years.

The other bidders for the same tender included Dubai Ports World DPW.AI, which teamed up with Greek construction group Aktor and Piraeus Bank; and China's Cosco Pacific Ltd. (1199.HK).

Last December, the center-right New Democracy government announced plans to privatize the container management operations at the Piraeus Port Authority SA (PPA.AT) and the Thessaloniki Port Authority.

The government, which controls slightly over 74% of both ports, wants private companies to manage and invest in the ports' container terminal operations for up to 35 years as part of its 2008 privatization program.

Company Web sites: www.olp.gr; www.thpa.gr; www.dpworld.com; www.hutchison-whampoa.com; www.coscopac.com.hk


Corrected July 22, 2008 12:48 ET (16:48 GMT) [ 22-07-08 1636GMT ]

The other bidders for the same tender included Dubai Ports World, which teamed up with Greek construction group Aktor and Piraeus Bank; and China's Cosco Pacific Ltd. (1199.HK).

Hutchison Consortium Named Preferred Bidder For Greek Port
1 August 2008

HONG KONG (Dow Jones)--A consortium led by Hutchison Port Holdings was named the preferred bidder in a tender for the development of new container facilities at Port of Thessaloniki, Greece's second-largest container port, Hutchison Whampoa Ltd.'s (HUWHY) ports unit said in a statement Friday.

Last December, the center-right New Democracy government announced plans to privatize container management operations at Piraeus Port Authority SA (PPA.AT) and Thessaloniki Port Authority.

The government, which controls slightly over 74% of both ports, has invited private companies to manage and invest in the ports' container terminal operations for up to 35 years as part of its 2008 privatization program.

Small talk Hutchison in bid for Port Botany.
15 October 2008
Lloyd's List

PORT operator Hutchison has directly lobbied Australia’s New South Wales ports and infrastructure minister Joe Tripodi in a bid to become Port Botany’s third terminal operator, reports Lloyd’s List DCN.

The move supports repeated State Government soundings that it wants a third terminal operator instead of awarding the lease to the incumbents, Patrick and DP World.

Mr Tripodi said he met Federal Labor MP Laurie Brereton, acting on behalf of the Hong Kong-based company, which already operates berths 11 and 12 at port of Brisbane.

Port Botany’s expansion, which began earlier in the year, is scheduled to be completed in 2010.

Mr Tripodi confirmed that members of Hutchison had seen him and were expressing interest.

“It was a general meet-and-greet and expression that they were keen to see it go ahead,” Mr Tripodi revealed during a budget estimates hearing.

Mr Tripodi downplayed the meeting, saying it was common practice for representatives of a stevedoring company to visit a ports minister when they were in town.

Hutchison gambles on Taranto’s potential
21 November 2008
Lloyd's List

Hutchison Whampoa’s negotiations with Evergreen over taking a stake in the Taranto Container Terminal appear to be moving forward.

The two companies are understood to have applied jointly for clearance from the European Commission.

Reports from Brussels suggested that the request was filed with the commission on Tuesday, the last day that would permit a ruling before Christmas. Informed sources in Taranto confirmed that Hutchison has been engaged in due diligence of the terminal for some time. Officials at the two companies were unavailable for comment.

It is understood, however, that Hutchison would take a 50% stake in the operating company, and take over management of the facility, which is located at the very heel of Italy and is viewed as a potentially valuable transhipment hub for central and eastern Europe via the Adriatic.

Nonetheless, Hutchison will have its work cut out if it is to make TCT a success in a climate that has often seemed overtly hostile to port expansionin the past, and particularly to the dredging required to make it possible.

Evergreen, which has operated the terminal since it opened for business in 2001, has had difficulties translating TCT’s favorable location into steady growth in throughput — this is despite significant investment and sound management of the facility.

In part, according to some industry sources, this stems from a market perception that it is first and foremost an Evergreen terminal, a view reinforced by what some describe as an apparent unwillingness to market it aggressively.

However, Evergreen’s difficulties at Taranto have not been all of the company’s own making. Most damagingly, the terminal has been hamstrung by an inability to dredge key berths and channels down to levels sufficient to allow calls from the new generation of mega-containerships.

Executive vice president Giancarlo Russo attributes MSC’s departure for Gioia Tauro last year precisely to the disruptive influence of those same shallow draughts, with some vessels arriving at busy times forced to partially offload at deeper draught berths before shifting position.

The loss of MSC was largely responsible for the slide in throughput to 760,000 teu last year from 890,000 teu in 2006 — this at a terminal which he says could handle up to 2m teu annually.

Difficulties securing dredging permits have blocked plans for significant expansion at TCT and elsewhere around the port, though TCT is now pushing a new application to dredge to 16.5 m at the berth, compared with a current maximum of 14.5 m.

Hutchison to invest in new Shenzhen container berths

HONG KONG, Dec 4 (Reuters) - Hutchison Whampoa Ltd , the world's biggest container terminal operator, will team up with Shenzhen Yantian Port Group to invest in a container terminal in the city's Yantian East area, despite slowing global trade in the face of the financial crisis.

Hutchison Port Holdings, a unit of Hutchison Whampoa, said it had signed a deal with Yantian Port on Thursday and preparation work for the construction would start soon.

The East Port Phase I project will cover an area of 1.38 million square metres and will develop four container berths to handle ships of up to 9,500 twenty-foot-equivalents units (TEU).

Hutchison will have 53 percent of the project and Yantian Port will own the remaining 47 percent, Wang Yongzhen, head of the general office of Yantian Port told Reuters.

No financial terms were available but analysts estimated the investment at be around HK$4.4 billion ($568 million).

Hutchison, which handled a combined throughput of 66.3 million TEU worldwide last year, has partnered with the mainland firm in the development and operation of Yantian West Port in China's booming southern city of Shenzhen.

But slowing trade growth and increasing competition in the neighbouring terminals had seen Yantian's container throughput fall 3 percent year-on-year to 7.9 million TEUs in the first 10 months of 2008, analysts said.

Terminals in Shenzhen, the second-busiest port on the mainland, have been expanding their market share in southern China at the expense of Hong Kong's port as they are closer to factories in the Pearl River Delta, helping to lower transport costs.

New terminals in Shenzhen, including Da Chan Bay Terminal One developed Modern Terminals, and Guangzhou have intensified competition.

Slowing export growth due to weak demand from the United States and Europe as a result of an economic downturn deepened the woes of terminal operators, analysts said.

In order to optimise the use of resources and lower operational costs, Yantian International Container Terminal will manage East Port Pase I along with existing facilities at West Port. ($1=HK$7.751)

EU OKs Hutchison Whampoa, Evergreen To Buy Port Operator
18 December 2008

BRUSSELS (Dow Jones)--The European Commission cleared Thursday conglomerate Hutchison Whampoa Ltd. (0013.HK) and Evergreen Marine Corp. (2603.TW) to jointly acquire control of Italian port operator Taranto Container Terminal SpA.

Hutchison's unit Hutchison Ports Taranto BV and Evergreen will share control of the company, which operates the port of Taranto, in Southern Italy.

Port operators ink swap deal
23 December 2008
Hong Kong Standard

Hutchison Port Holdings, the container-port operator controlled by Hutchison Whampoa (0013), has signed a share-swap agreement with Japan's NYK Group.

The deal means Hutchison takes majority control of Amsterdam-based Ceres Container Terminals Europe (CTE).

In return, Hutchison gives Tokyo- based shipper NYK a minority stake in Europe Container Terminals, its Rotterdam-based operations.

``The investment in CTE will help strengthen Hutchison Port Holdings' presence in northern Europe through the addition of extra container- handling capacity,'' Hutchison Port Holdings group managing director John Meredith said.

CTE's strategic location allows it to attract deep-sea and feeder traffic as well as inland traffic, Meredith said.

CTE controls three berths as well as a roll on/roll off terminal that performs stevedoring activities for automobile carriers.

The CTE berths include an on-dock rail facility with 700-meter-long tracks that reach to the edge of the quay deck, Hutchison said in a statement.

Shares of Hutchison Whampoa fell in line with the general market yesterday, sliding 4 percent to close at HK$39.10, down HK$1.65.

Hutchison Ports Unit Signs Deal To Manage Stockholm Terminal
18 December 2008

HONG KONG (Dow Jones)--The ports unit of conglomerate Hutchison Whampoa Ltd. (0013.HK) said Thursday it signed an agreement with Ports of Stockholm Group that gives the Hong Kong-based company the right to operate the container terminal at the Stockholm Free Port for 25 years.

Hutchison Port Holdings didn't provide financial details for the agreement with the Swedish company that starts March 1, 2009, but it said the deal will also give it the operational rights for a new container terminal at the port of Stockholm-Nynashamn, which will be operational in 2012.

Hutchison, which is the world's largest port operator by throughput, said the new terminal will cover an area of 25 hectares and will be developed in three separate phases.

Greek port deal scuppered as Hutchison withdraws interest: port authority
24 December 2008
Agence France Presse

Global transport operator Hutchison Whampoa has scuppered talks on the concession for container facilities at Greece's main northern port of Thessaloniki, the port authority said Wednesday.

A consortium headed by the Hong Kong-based operator withdrew its interest in the deal this week, port authority chairman Lazaros Kanavouras told the Greek semi-state Athens News Agency (ANA)

"The general manner of their participation in the negotiations had not given us reason to expect such a sudden break," Kanavouras told the agency.

He attributed the decision to the global financial crisis.

"(The consortium) has informed (us) that it it withdrawing its interest in the concession," the Thessaloniki port authority said in a statement.

"The two sides were in the process of drawing up a contract following an international tender in which the consortium had been declared a temporary concessionaire," it said.

Hutchison, which had outclassed rival operators Cosco and Dubai World Port with a 419-million-euro (586-million-euro) bid, has not commented.

The container terminals of Thessaloniki and the main port of Piraeus are a top privatisation priority for Greece, which seeks to exploit its strategic position at the European Union's gateway and maximise trade proceeds.

Last month, the Greek government, in the presence of Chinese President Hu Jintao, signed a 35-year concession of Piraeus' main container facilities to China's Cosco which it said will bring a guaranteed premium of 3.4 billion euros (4.8 billion dollars) and boost the port's capacity by 250 percent.

The plan for Thessaloniki had an investment target of 250 million euros and was to triple the port's capacity to 1.6 TEU's.

Both Piraeus and Salonika are currently turning a profit but the funds are insufficient for the "massive" investment needed to fully face up to their regional competitors, the government says.

Ecuador President Threatens To Expel Hutchison Ports
5 January 2009

QUITO (Dow Jones)--Ecuador might expel Hutchison Ports Holding Ltd., the ports unit of Hong Kong conglomerate Hutchison Whampoa Ltd. (0013.HK), because it isn't meeting a timetable for investments at the Manta cargo port, President Rafael Correa said over the weekend.

"I had pulled out a yellow card. Forget the banana republic. It (the company) won't play with this government. If Hutchison doesn't meet its commitments, it will have to leave the country," Correa said during his weekly radio address.

In 2006, Hutchison assured a 30-year concession for the modernization and operation of Ecuador's Manta cargo port, on the Pacific coast. It was to build the modern infrastructure necessary to accommodate vessels carrying more than 4,500 containers.

The contract calls for $240 million in infrastructure investments, $161 million in equipment and $122 million for maintenance. Some 30% of the total $523 million in investment is meant to be disbursed during the first six years.

The concession contract also requires an additional $55 million in investment from the state to build a fishing, industrial and tourist port.

Correa said his government won't give a cent of this. "The concession is for the cargo port. We won't give a cent. We will build the fishing, industrial and tourist port," Correa said.

Hutchison officials were not available to comment.

Manta, which is a major city for Ecuador's tuna industry, is located in the westernmost part of Ecuador's Pacific coast. It is Ecuador's second-most important port after Guayaquil.

According the Hutchison Web site, the Port of Manta is the closest port to Asia on the west coast of South America, making it the ideal first port of call in the region for global shipping lines.

Ecuador Gives Hutchison Unit 90 Days To Solve Port Problems
7 January 2009

QUITO (Dow Jones)--The port authority in the city of Manta, or APM, has given Terminales Internacionales del Ecuador 90 days to fulfill its contract terms, APM's manager Patricio Padilla told Dow Jones Newswires on Wednesday.

Terminales Internacionales del Ecuador, or TIDE, is a unit of Hong Kong conglomerate Hutchison Whampoa Ltd. (0013.HK)

Last weekend, President Rafael Correa said his government might expel the company because it wasn't meeting a timetable for investments at the Manta cargo port.

"The APM decided yesterday to give an ultimatum to the company: 90 days to see progress in the works," Padilla said in an interview.

Meanwhile, Alex Villacreses, undersecretary for ports in the Ministry of Public Works, said that if the Asian company doesn't fulfill its commitments, "it won't continue in the business. In the world there are many operators who want to invest in Manta."

According Padilla, "the company has already been notified verbally and in the coming hours it will receive the written notification."

The APM also decided to begin talks with TIDE to renegotiate its contract and to exclude it from the building of a fishing, and other use, port.

The port upgrade contract calls for $240 million in infrastructure investments, $161 million in equipment, and $122 million for maintenance. Some 30% of the total $523 million in investment is meant to be disbursed during the first six years.

The concession contract also requires the additional $55 million in investment from the state to build the fishing port.

Correa said that the government will build that part of the port itself.

"The contract's renegotiation has priority. If we can, we will begin the talks this week. There is a decision that the state, through APM, will build the fishing port and TIDE will develop the international cargo port, which is the objective of the contract," Padilla said.

Although Padilla didn't give more details, he said that the company didn't meet the work and investment schedule and that there were also delays in the renovation of guarantee papers, among other things.

Hutchison officials in Ecuador were not available to comment.

Hutchison received a 30-year concession for the modernization and operation of Ecuador's Manta cargo port. It was to build the infrastructure necessary to accommodate vessels carrying more than 4,500 containers.

Manta, which is a major city for Ecuador's tuna industry, is located in the westernmost part of Ecuador's Pacific coast. It is Ecuador's second-most important port after Guayaquil.

The Port of Manta is the most accessible terminal in Ecuador for cargo from Asia. It is also the nearest natural deepwater port on the Pacific Coast of South America for ships sailing from Asia.

Hutchison says withdraws from Ecuador port project

HONG KONG, Feb 6 (Reuters) - Hutchison Whampoa's port unit said it will withdraw from a Manta cargo port project, reportedly worth $513 million, after the Ecuadorian government made changes in the concession agreement.

This is the first major project to be abandoned by Hutchison after the port-to-telecoms conglomerate said last October it would halt on "uncommitted spending" until June 2009 and all investments would require a new look amid the global financial crisis.

Hutchison Port Holdings Group said in a statement on Friday its member Terminales Internacionales de Ecuador S.A. will withdraw from the concession agreement to operate the Port of Manta in Ecuador because it found the changes unacceptable.

Ecuador President Rafael Correa said in January that he had "pulled out a yellow card" for Hutchison, the world's largest container terminal operator, due to delays in investment in the project, the South China Morning Post reported.

Correa said if Hutchison could not meet its commitments "it will have to leave the country," the paper said.

Analysts said it was not surprised that Hutchison would take the opportunity of weak economic conditions to reorganise its business.

"Hutchison's business is closely related to the world economy and now under the global financial crisis, there is no doubt that its business will be affected," said Marco Mak, an analyst at Tai Fook Securities.

Shares in Hutchison fell nearly 2 percent earlier on Friday as its unit Husky Energy reported its fourth quarter profit sank 79 percent. The stock closed 0.7 percent up, lagging a 3.6 percent rise on the blue chip Hang Seng Index .HSI.

Greek Privatization Plans Hit By Econ Crisis-Minister
12 February 2009

PIRAEUS, Greece (Dow Jones)--Greece's privatization program is facing difficulties as a result of the economic crisis, a government minister conceded Thursday, following the failure of two privatization tenders in as many weeks.

Late Wednesday, the Thessaloniki Port Authority SA (OLTH.AT) - the state-owned company that manages Greece's second largest port - formally invalidated a bid by Hong Kong-based ports operator Hutchison Whampoa Ltd (HUWHY), after the company withdrew its winning bid to manage the container operations at the port.

And earlier this month the government canceled the long-awaited and closely-watched privatization tender for loss-making national carrier Olympic Airlines after failing to receive satisfactory bids.

"The lack of interest in Olympic and the lack of interest in the Thessaloniki port...shows that there is a problem arising out of the international crisis," said Merchant Marine Minister Anastasios Papaligouras. "And especially with the difficulty investors have in finding financing during this crisis."

Late in December, a consortium led by Hutchison Whampoa withdrew its winning EUR419.5 million bid because of difficulty in securing bank financing for the project.

The other bidders for the same tender included consortia led by Dubai Ports World (DPW.AI), and China's Cosco Pacific Ltd. (1199.HK).

Both had much lower bids for the 30 year concession, with Cosco offering EUR132.0 million for the port operations, while Dubai Ports offered EUR68.4 million.

The announcement by the Thessaloniki Port Authority means that the Hutchison bid has now been formally rejected, possibly opening the way for a new tender or else fresh talks with second and third placed bidders Cosco Pacific and Dubai Ports World.

Last year, the center-right New Democracy government announced plans to privatize the container handling operations at its two major ports - in Thessaloniki and the far larger port of Piraeus.

The program was seen as centerpiece of the government's privatization drive and were designed to bring fresh investment to Greece's two largest ports which enjoy a strategic location in the eastern Mediterranean.

Despite union opposition and a series of technical problems with the tender process, Greece eventually awarded the management concession for the Piraeus port operations to Cosco Pacific.

That deal is expected is be finalized by the end of March following approval from the Greek parliament, Papaligouras said.

Speaking to reporters, Papaligouras said that the government would decide on how to proceed with the Thessaloniki ports tender once the Cosco deal has been approved.

"We have no intention to address the issue of what happened with Thessaloniki until we complete the deal with Cosco," Papaligouras said. "Once that has happened, we will jointly examine with the Ministry of Finance how to proceed and decide on one of several solutions that will be discussed."

Web sites: www.yen.gr; www.thpa.gr; www.hutchison-whampoa.com; www.olp.gr; www.dpworld.com; www.coscopac.com.hk

Greece to cancel Thessaloniki port tender - sources

ATHENS, March 10 (Reuters) - Greece will annul a tender to privatise and upgrade facilities at the country's second largest port in Thessaloniki (OLTH) , sources close to the deal said on Tuesday.

"We are essentially cancelling the tender," said a company official, who requested anonymity. "The company has already started the expansion process ... using its own funds."

A government official, who declined to be named, confirmed the tender would be cancelled, after the top bidder withdrew due to the global crisis.

A joint venture by Hutchison Port Holdings (HPH) and Greek pharmaceutical group Alapis had offered about three billion euros in last year's tender but pulled out in December due to difficulties in financing the project.

Hong Kong's Hutchison Whampoa posts 42 percent drop in 2008 profit amid economic slump
26 March 2009

HONG KONG (AP) - Billionaire Li Ka-shing's conglomerate Hutchison Whampoa Ltd. said Thursday its 2008 profit tumbled by 42 percent as the global economic crisis hampered growth at various businesses.

Net income for the 12 months through December fell to 17.7 billion Hong Kong dollars ($2.3 billion) from HK$30.6 billion ($3.9 billion), the company said in a statement.

Earnings from the company -- a sprawling conglomerate with retail, property, energy, infrastructure and telecom operations in over 50 countries -- beat average analyst forecasts of HK$15.5 billion, according to a Thomson Reuters poll.

Revenue grew 13 percent to HK$348 billion.

Slumping trade amid the global downturn restrained growth at its massive port and terminal operation, with total revenue rising only 4 percent. However, the company said losses at its third-generation mobile business narrowed.

While China's economy and stimulus measures would help cushion the Hong Kong-based firm, Hutchison was facing its "most challenging environment in recent times" as growth slows in markets around the world and major economies struggle through recessions, Li said in a statement.

"Although the unprecedented economic environment will have differing adverse effects on the group's various businesses around the world, overall the group's established businesses are still expected to continue to perform satisfactorily," he said.

Meanwhile, lower contributions from affiliate Hutchison hurt Li's flagship developer Cheung Kong (Holdings) Ltd., whose net profit for 2008 plummeted 44 percent to $15.5 billion, missing expectations.

In stock trading Thursday, Hutchison Whampoa added 3.3 percent to HK$42.55, while Cheung Kong rose 1.9 percent to HK$71.4.

Hutchison says to keep buying good value terminals

HONG KONG, March 26 (Reuters) - Hutchison Whampoa , the world's largest container port operator, said on Thursday the company would keep buying shipping terminals in good locations.

"We will keep looking for opportunities to buy terminals if they are in prime locations and the price is right," chairman Li Ka-shing told reporters.

Amsterdam loses EU2 loop to Rotterdam
22 April 2009
Lloyd's List

AMSTERDAM Container Terminals, formerly known as Ceres Paragon, has been dealt another blow with the news that the Grand Alliance EU2 loop will no longer call at the facility from mid-May, writes Helen Hill in Amsterdam.

The EU2 service will transfer its Netherlands port call to Rotterdam’s ECT. Both Amsterdam Container Terminals and ECT are owned by Hutchison Port Holdings.

Earlier this year, Amsterdam Container Terminals was hit when the Grand Alliance suspended its EU5 service.

Although no one was immediately available for comment, the loss of the EU5 and now the EU2 is understood to have cut throughput at Amsterdam Container Terminals by at least 70%.

The Bangkok Express is expected to be the EU2’s last vessel to call at Amsterdam on May 15. The first call into ECT’s Delta terminals on Rotterdam’s Maasvlakte will be towards end-May. The EU1 service, which connects Europe with Japan, will continue to call into Amsterdam.

Oman Container Terminal targets higher throughput despite downturn
20 May 2009
Lloyd's List

OMAN International Container Terminal is targeting a throughput two to three times the volumes of 2008, its first full year of operation, despite the financial crisis.

The two-berth terminal aims to profit from the increasing numbers of exports from Sohar and Muscat, and is eyeing more local and transhipment business, which would bring UAE into the commercial equation. The immediate focus is closer to home, however, with OICT targeting a more than 25% share in the total Oman imports and exports market during the year.

Talks are underway to close Muscat’s Port Sultan Qaboos and convert it into a cruise terminal by 2013, which would provide OICT with a further boost from the containerised transfer.

OICT acting chief executive and chief financial officer Dennis Tam said the terminal’s proximity to Sohar would stand it in good stead when the market rebounds. “Sohar stands to boom from the investment in industries within Port of Sohar, Sohar Industrial Estates and the huge Sohar Economic Zone, so we are in a good position,” he said.

“We have broad plans to build more quay length when volumes start to grow again.”

But he conceded that the short-term picture has not been rosy, with imports dropping and exports “sluggish” in the first quarter, although April saw some improvement.

“We have been targeting new revenue streams such as storage, CFS facilities, container repairs — anything that enables us to deliver on budget to our shareholders.”

One encouraging sign has been a slight increase in Oman’s exports, he said. “Oman mainly exports raw materials rather than finished products, so it’s clear some customers are ordering again. That could mean business picking up towards the end of the year.”

OICT receives around five to six calls a week on average with APL, Maersk, UASC, MSC, Star Feeders and CMA-CGM among the principal customers.

Mr Tam said it has among the highest productivity in the region, with 28 container moves per hour, but is conscious “it can do even better”.

Its nGen computerised container yard management system, which has been developed by HPH, provides high efficiencies and productivity and assures shippers peace of mind by logging every single box’s location in the port. The system also enables fast turnaround time of trucks within its yard.

OICT has no plans to increase equipment this year, beyond its four quay cranes and eight rubber-tyred gantries.

OICT is a joint venture between Hutchison Port Holdings, the Government of the Sultanate of Oman, Steinweg of the Netherlands and other well-established Oman and UAE investors.

Shipping increase hints at improving economy
28 May 2009
The Jakarta Post

Container handling at Tanjung Priok has remained in the doldrums for most of this year, but signs of improvement have been seen in the last two months, according state port operator PT Pelindo II.

President director Richard Lino said Wednesday the number of containers handled from January to late May at the largest port in the country, which handles around 65 percent of total shipments annually, has gone down by 30 percent for imports and 12 percent for exports from the same period last year.

But, he said, there have been signs that activities began to pick up mid March.

"In January and February, the transaction [for container handling] fell deeply. However, afterwards the number has been increasing steadily," Richard said.

Richard was speaking to reporters after new facilities installed by the Jakarta International Container Terminal (JICT) - the largest terminal operator at the port - aimed at increasing its handling capacity were opened.

He however did not provide the exact figures. But, his statements gave weight to suggestions that the global economic downturn, and its impacts, have begun to reach a bottom, which should then lead to a path of recovery.

Also present at the event, Trade Minister Mari Elka Pangestu also expressed her confidence that trade activities at the Jakarta port, and elsewhere, would eventually recover from its slump, which begun in the last quarter of last year at the height of global financial meltdown.

While the economic downturn slows down trade activities, she said, now is actually the right time to make necessary reforms in the anticipation of a rebound.

"Usually the port is too busy to improve itself. However, due to the current economic slowdown, the frequency of shipping has decreased.

"Our ports must improve their capacity now in order to be prepared to give better services to global trade transportation when the slowdown comes to an end."

JICT, which is 51 percent owned by Hong Kong-based Hutchison Port Holdings and 48.9 percent by PT Pelindo II, had early this year predicted that container handling shrink by 30 percent overall this year to 1.33 million twenty equivalent units (TEUs) of containers, from around 1.9 million TEUs last year.

Tanjung Priok port handled around 3 million TEUs last year, including 1.9 million TEUs managed by JICT.

The new facilities are part of JICT's program to expand and invest more in infrastructure to improve services, president director Derek J. Pierson said.

Investments for this alone have increased JICT's handling capacity to 2.5 million TEUs; further investment would push up the figure to around 3 million.

Pierson said that with continued investments, "productivity has risen from an average of 18 crane moves per hour 10 years ago to almost 29 crane moves per hour today, an improvement of some 60 percent".

According to the UN Conference on Trade and Development, Indonesia handled 5.74 million TEUs of containers in 2006, far less than the 24.79 million TEUs managed by Singapore.

Mari expects other container terminal operators in the country to keep expanding and investing to ensure Indonesia's trade competitiveness.

Felixstowe likely to bear brunt of increased charges
25 May 2009
Financial Times

The windswept Suffolk port of Felixstowe would be hardest hit by an increase in light dues. It estimates that calls at its container port, the UK's busiest, account for 20 per cent of all British Isles' light dues receipts, writes Robert Wright .

Owned by Hong Kong's Hutchison Ports, the world's largest container port operator, it could stand to lose many of the direct calls by large container ships that are its main business. Lines might either move UK-bound goods on to smaller feeder ships, which are less profitable for ports to handle, or use their largest, deepsea ships for deliveries to the UK, thereby reducing the overall number of calls.

Felixstowe is also currently unique in the UK in handling significant volumes of trans-shipment - the process of loading or unloading goods from long-haul ships on to short-haul feeder services going to smaller European ports. It recently regained trans-shipment movements from Mediterranean Shipping Company, the world's second-largest container line which had deserted Felixstowe in 2004 for Le Havre because the port was too congested.

The port denies such traffic would automatically be driven away by light dues' increases. It could make more sense for lines to increase loads and make fewer calls at Felixstowe with big ships instead. But there is general nervousness about the likely effects of an increase - not diminished by container lines' obvious determination to avoid extra costs. Many lines transporting goods from Asia to Europe are currently making huge diversions around the Cape of Good Hope because they are unhappy at the level of Suez Canal tolls.

Two foreign bids for $1.4 bln Tunisia port licence

TUNIS, May 25 (Reuters) - Kuwait's Al-Mal Investment Co , and Canada's biggest engineering company SNC-Lavalin Group Inc have bid for Tunisia's $1.4 billion port licence, Tunisian state news agency TAP said on Monday.

Al-Mal, a firm controlled by family-owned conglomerate Kharafi Group, is teaming up with Hutchison Port -- the world's largest container terminal operator -- in its offer to buy the deep-water Enfida port licence, TAP added.

Tunisian officials have said they expected the winning bidder to be named later in 2009.

The seaport in Enfida is located some 130 km (80 miles) south of Tunis.

It would have a capacity of 5 million containers per year, officials say.

Bidding for Tunisia deepwater box hub enters final straight.
1 June 2009
Lloyd's List

AN AMBITIOUS project by Tunisia to build a 5m teu deepwater box hub in the Mediterranean, against established competition in a highly competitive market, has been whittled down to the final two consortia bidders, according to local reports.

Local state news agency TAP said the bidding process for a $1.4bn licence to build a greenfield container port at Enfidha, in the north east of Tunisia, has reached the final round.

TAP suggests that Hong Kong’s Hutchison Port Holdings and Kuwait’s Al-Mal Investment Co are in one consortium, lined up against Canadian engineering company SNC-Lavalin Group for the 50-year build-own-operate concession.

Tunisian officials expect the winning bidder — some eight players were pre-selected at the original project launch — to be named later this year.

A spokesperson for HPH said: “It is company policy that we do not comment on our future port development plans.”

HPH’s potential involvement in such a project, given the company’s keen focus on return in investment, has to be seen in the light of Dubai-based DP World, which has two ongoing projects in neighbouring Algeria.

DP World appears to have stepped down from the Enfidha bidding process, although a spokesperson said: “We don’t comment on opportunities we may be or may have been exploring.”

As transhipment boxes earn lower revenue than import/export cargo — and Tunisia would not generate 5m teu of gateway traffic — the emergence of neighbouring Libya, currently without an ongoing container port development, may be an additional factor for the bidders.

An official for SNC-Lavalin stated: “We are certainly interested in this important project and are part of the bidding process, but we have nothing further to add.”

SNC-Lavalin and APM Terminals were joint bidders for the container terminal concession at Vancouver. The Canadian company could thus now end up competing with the APMT box hub investments in Tangier and the Suez Canal Container Terminal.

Al-Mal Investment Co had not responded to inquries by the time of going to press.

Industry eyebrows have been raised at the Tunisian announcement, given the current downturn in container volumes and a Mediterranean shoreline crowded with competing box ports.

Enfidha would also have to compete with nearby transhipment hubs, such as Malta Freeport, backed by French line CMA CGM, which last year handled 2.3m teu, and Gioia Tauro, operated by Contship Italia, which saw 3.4m teu pass across its quays in 2008.

However, Tunisia is positioning itself as the “Dubai of Africa” and the country’s transport ministry officials have been quoted as saying that Enfidha will target regional traffic between Europe and Africa.

The scale of the infrastructure work at Enfidha represents a significant investment and includes two breakwaters and dredging. There will be 1,500 m of container terminal quay at a depth alongside of 18 m, and a multi-purpose terminal with 1,120 m of quay.

Although the development looks hugely demanding, the Tunisian government has already instituted reforms of customs procedures to facilitate trade. The new port is part of the Enfidha logistics zone, which includes the construction of a new airport.

Losing out Evergreen pulls Thamesport services
5 June 2009
Lloyd's List

LONDON Thamesport is losing two Evergreen container services but gaining a third from the Taiwanese shipping line as part of a growing shift of traffic to Felixstowe, the UK’s top box port, writes Roger Hailey.

A UK spokesperson for Hong Kong-based Hutchison Port Holdings, which owns both Thamesport and Felixstowe, said it was too early to assess the impact on the London hub.

Evergreen is moving its weekly CEM China-northern Europe service to Felixstowe and will stop calling with 8,000 teu vessels at Thamesport from mid-July.

A second container service, calling at the US, Asia and Europe, is being discontinued but will be replaced by a weekly China Europe Shuttle service, which begins at the end of this month with vessels of 7,000 teu.

Evergreen’s opting for Felixstowe follows Maersk Line’s decision to drop Southampton from its Asia-Europe schedules and to concentrate UK calls on Felixstowe.

HPH opens US$11mn grain cargo facility in Baja California
9 June 2009
Business News Americas

Hong-Kong based operator Hutchison Port Holdings (HPH) inaugurated on June 5 a new 150mn-peso (US$11mn) specialized grain cargo storage facility in Mexican state Baja California's Ensenada port, paper El Economista reported.

Of the total investment, roughly half was allocated to the construction of warehousing that will hold 420,000t of Italy-bound wheat exports, according to the report.

HPH México president Jorge Lecona said the company will continue to carry out infrastructure projects in the country in spite of the global financial crisis.

However, HPH has reportedly lost interest in Baja California's 50bn-peso Punta Colonet port concession, which could be launched by year-end, according to governor José Guadalupe Osuna Millán.

HPH's local operations also include the ports of Veracruz, Lázaro Cárdenas (Michoacán state) and Manzanillo (Colima state).

Tanzania terminal grants box amnesty
10 July 2009
Lloyd's List

DAR es Salaam’s main container terminal has announced a $14m partial waiver of storage charges, which will allow importers to remove containers that have been sitting in the port for more than four months at a sizeable discount to accrued fees, writes David Osler.

But anyone not taking advantage of the 30-day amnesty offer will see their boxes sold at auction, Hutchison affiliate Tanzania International Container Terminal Services has warned.

The concession, which runs from August 1 until the end of the month, and is valued at around $14m, is being seen as an attempt to relieve congestion at the east African hub. Containers that have stayed above 365 days are to be released on payment of $1,500 per box. Those that have stayed between 181 and 365 days will have to pay $2,000 per container and those that stayed between 120-189 days will pay $2,500.

The discounted rates are subject to value added tax and cover storage charges alone. All other port charges continue to apply.

An advertisement in the local press states: “Customers are required to complete all the necessary documentation and obtain the necessary releases to enable them to pay port charges within the deadline. Normal documentation requirements apply and importers must clear customs and obtain the necessary delivery order from their shipping agent.”

One local shipping source said: “It is believed that this is a move to make sure TICTS keeps the contract to operate the terminal, by showing this good will, so it stays in the government’s good books while the contract is being debated in parliament.”

TICTS will also benefit by having more space once the backlog is removed from its premises, and may even recover some revenue that would otherwise have to be written off as bad debt, he added.

Buoyant IPS focuses on Dammam and Riyadh
18 June 2009
Lloyd's List

INTERNATIONAL Ports Services recorded 3% year-on-year growth in first quarter business, with exports increasing and imports remaining similar to last year.

Jason French, chief executive and general manager of IPS, part of Hutchison Port Holdings, said the company continues to focus on the import market for Dammam and Riyadh and is increasing handling equipment in anticipation of more rail freight traffic to the capital. In July, IPS receives 12 more tugs and reefer points are being expanded from 1,376 to 1,676. “We are also focusing on the growth in exports from Jubail and Dammam and aim to handle transhipment to the Upper Gulf.”

As Dammam has spare capacity of 500,000 teu, transhipment can be offered with no additional cost to the shipper. “With the main market being Saudi andthe mother vessels now all on fixed windows at Dammam, it is logical the transshipment point will be Dammam,” he added.

The newly opened Bahrain terminal is chasing the same Upper Gulf market, but he said it has not experienced any impact on its business so far. “It is unlikely any shipper will tranship via Bahrain as it is an additional cost to the shipper,” he said. “Dammam remains the only realistic gateway to the kingdom and with additional investment we see no threat.”

He added that any of the Saudi rail projects will only serve to boost Dammam’s credentials as the hub port in the Upper Gulf. “With the current rail network from Riyadh directly going into the port of Dammam, any connection north-south or east-west linking to the Riyadh-Dammam line will only increase the volume,” he said.

Discussions are continuing with IPS’ shareholders, Hutchison & Al Blagha, over phase two of the terminal’s expansion which would see six more post-panamax cranes and 15 RTGs arrive, taking Dammam’s overall capacity to 3m teu.

HK Hutchison to buy back sterling, euro debt

HONG KONG, June 18 (Reuters) - Ports-to-telecom conglomerate Hutchison Whampoa is buying back up to 350 million pounds ($573.6 million) and 300 million euros ($418.6 million) of its bonds as Asia's most active corporate debt issuer takes advantage of easing credit conditions to cut debt.

In the latest buyback announcement the company said it was inviting investors holding bonds due in 2026, 2017 and 2016 to tender their debt for cash.

The outstanding amounts for the three issues are 400 million pounds, 300 million pounds and 1 billion euros.

It would pay 840 pounds and 953 pounds respectively for every 1,000 pounds of primcipal held in the 2026 and 2017 bonds, while it would pay 955 euros for every 1,000 euros outstanding in the 2016 bonds. Calyon Corporate & Investment Bank is the deal manager and the offer is open until June 26.

Earlier, the company made an offer to buy back up to $3 billion in dollar bonds of various maturities.

International Port-Building Projects Ramp Up in Vietnam
2 July 2009

HANOI (Nikkei)--Port development is under way in Vietnam, carrying hopes not only that it will enhance the nation's distribution capabilities, but also help stimulate the other Mekong River economies as well.

At the mouth of the Cai Mep/Thi Vai river complex in southern Vietnam, an international project is moving rapidly to build container terminals and expand port facilities. "Megaterminal operators are coming together from all over the world," said a source at the Japan International Cooperation Agency. The new east Asian trading hub they are working to create will begin partial operation around 2011.

The riverside development area consists of two districts. In the Cai Mep district, a joint venture involving A.P. Moeller-Maersk A/S of Denmark, SAS Marine of the U.S. and Gemadept Corp. of Vietnam is building a container terminal. In the Thi Vai district, Posco of South Korea, PSA International Pte Ltd. of Singapore, Hutchison Port Holdings Ltd. of Hong Kong and other companies are building another.

Both are big projects requiring wetland reclamation and dredging from seven meters down to 14 to create a deepwater port for the largest ships. SSA will develop about 60 hectares to build a 600-meter pier that can dock two large ships side-by-side. The firm stresses that the new terminal will be large enough to satisfy the area's rising demand for shipping.

Vietnam's main port facilities are near the southern commercial center of Ho Chi Minh City. Cargo traffic is reaching its physical limits there because urban development around the port makes expansion impractical. So the government decided to create new port facilities at Cai Mep/Thi Vai, just two hours by road from Ho Chi Minh City. Sticking out into the South China Sea, the southern tip of Vietnam "has the advantage of close proximity to shipping routes connecting Asia with North America and Europe," said a source at Kawasaki Kisen Kaisha Ltd. (9107).

Road and bridge construction will soon begin to connect the new port to National Highway 51, the main artery for container transportation. The new infrastructure will connect southern Vietnam's ports by road to Cambodia and Thailand, with enormous potential to develop a distribution center for all of Indochina.

In northern Vietnam, another large project has just begun under the Ministry of Transportation to build the Haiphong International Gateway Port on projected investment of about 1.1 billion dollars.

Haiphong, Northern Vietnam's primary port, is too shallow for larger ships and unable to fulfill growing demand for cargo transactions in the region. To address this, the ministry will build an artificial island and container terminal accessible for large ships by the end of 2014. Itochu Corp. (8001) "has already expressed interest in participating in the operation of the new terminal," said Vietnam manager Hiroaki Yashiro. The island will also support an industrial park, a shipyard and a petrochemical complex.

The primary advantage of this port is proximity to the world's manufacturing plant, China. There is a plan to build a highway from the border town of Lao Cai to Hanoi. It is likely that the artificial island off Haiphong harbor will become a consolidation center for cargoes from western China.

JICT Inaugurates the Second Stage of its Expansion Programme
Wednesday, May 27, 2009
HPH Press Release
http://www.hph.com/images/share/img_logo_hph.jpg

http://www.hph.com/files/pressimg/1244508271_JICT.JPG

Comprising new facilities and equipment to increase its capacity to 2.5 million TEUs per annum and further enhance its productivity to meet the demands of the bigger vessels now calling at Indonesia’s gateway Tanjung Priok Port.

[Jakarta, Indonesia - May 27, 2009] PT Jakarta International Container Terminal (JICT) inaugurated today the second stage of its Expansion Programme. The inauguration ceremony was held on the terminal’s new container yard. It was attended by the Indonesian Trade Minister Mari Elka Pangestu, Hutchison Port Holdings (HPH) Group Managing Director John Meredith, and PT. (Persero) Pelabuhan Indonesia II (Pelindo II) President Director Richard J. Lino.

JICT has taken delivery of four new super-post-Panamax quay cranes, two of which were fabricated in Indonesia, six new “1 over 6” rubber-tyred gantry cranes, a first of this type in Indonesia, and 26 new terminal tractors this year. JICT has also completed new infrastructure, including expanding its container yard and commissioning a new technologically advanced control tower, which will soon be endowed with HPH’s proprietary Next Generation Terminal Management System (nGen).

The investments that JICT have made this year have increased it’s handling capacity to 2.5 million twenty-foot equivalent units (TEU) compared with 1.5 million TEUs 10 years ago. Further investment in the future will increase JICT's capacity to over 3 million TEUs.

JICT President Director Derek Pierson commented, “Productivity has risen from an average of 18 crane moves per hour 10 years ago to almost 29 crane moves per hour today on the North Berth, an improvement of some 60%. In addition following the delivery of the four new super-post-Panamax quay cranes earlier this year JICT is now able to achieve an overall Vessel Operating Rate of 90 moves per hour when these cranes are deployed on the biggest vessels calling at JICT today.”

The Minister of Trade Mrs Mari Elka Pangestu said, in her inauguration speach, “As the biggest archipelago in the world, sea transportation is a vital sector in Indonesia’s international trade and transportation. Therefore, in the future, Indonesia must have international standard ports, to ensure Indonesia’s export competitiveness, through the continuous improvement of infrastructure, human resource quality and technology, as well as customer services.” The Minister stressed the importance of the Tanjung Priok port to Indonesia and went on to thank JICT for its efforts in improving capacity and technology.

Newly appointed President Director of Pelindo II Richard Lino said, “I will be working tirelessly to support JICT in its efforts to expand capacity and improve services and productivity in order to reduce overall costs to all JICT’s customers.” He went on to say, “I look forward to the completion of the Jakarta Outer Ring Road, currently under construction by the Government of Indonesia, as this would greatly enhance access to JICT and all other container and conventional terminals in Tanjung Priok.”

In his address HPH Group Managing Director John Meredith said, “Tanjung Priok now has the Water Depth, Crane Size, Supporting Equipment and Systems together with the productivity that the Lines demand. This will reduce Indonesia’s heavy reliance upon expensive offshore transhipment and offer a more cost effective and efficient service to its domestic and international customers alike. This is good news for the Indonesian economy.”

AFTER 45 years, one of Felixstowe's best-known landmarks has closed its ...
10 June 2009
Evening Star (Ipswich)

AFTER 45 years, one of Felixstowe's best-known landmarks has closed its operations.

The huge Calor Gas Terminal opened in 1964 and at the time it was the largest refrigeration tank in the UK.

Now the 108 ft tall white cylinder - which can hold 30,000 tonnes of liquid petroleum gas and is designed with super-thick walls so an explosion would go upwards rather than outwards - has been decommissioned and shut.

In due course, the terminal, which stands on an eight-acre site off Dock Road, will be demolished, freeing another site for new business inside the port complex.

Expansion of the port currently taking place has meant Calor, a tenant of Hutchison Ports, has lost its LPG pipeline and jetty.

The centre imported around 50,000 tonnes of LPG a year, which was stored in the enormous refrigerated LPG tank and collected by lorry. It employed about six people at the site.

Port historian Ian Heeley said: “We understand the tank has been filled with nitrogen and foam pads to absorb the gas. Eventually, once the gas has settled, it will be emptied and the material recycled, and then be ready for demolition.

“It's sad to see the tank go in some ways because it has been a feature of the town for so long and can be seen right across the town.

“The port though is a changing environment, like any industrial complex, and will carry on changing.”

Mr Heeley is part of a project to record the current changes caused by the expansion and which has so far taken 21,500 photos of the demolition of buildings and work on the redevelopment.

Hutchison Whampoa Closes Offer To Buy Back Bonds At Discount
29 June 2009

HONG KONG (Dow Jones)--Hong Kong port-to-telecom conglomerate Hutchison Whampoa Ltd. (0013.HK) said Monday it received GBP274.95 million in applications from bondholders for its plan to buy back up to GBP350 million worth of sterling-denominated notes.

The Hong Kong company, which owns U.K. mobile phone operator 3, also said in a statement it received EUR276.25 million in applications from bondholders for its plan to buy back up to EUR300 million worth of euro-denominated bonds.

Hutchison is offering to buy back some of its outstanding bonds at a discount of 84%-95.5% to face value.

The offer closed Friday, it said.

Hutchison Whampoa is the latest company to take advantage of relatively low prices in the secondary bond market by buying back its debt at a discount to face value.

Dublin port builds up solid base
10 July 2009
Lloyd's List

THE port of Dublin is well-placed to ride out the current economic crisis, its chief executive confidently believes.

More importantly perhaps, Enda Connellan sees the port staying exactly where it is for the next 10 years — dismissing talk of any relocation outside the Irish capital. “No senior civil servant or politician has mentioned to me moving Dublin,” Mr Connellan says, adding: “But if it is decided by our lords and masters to move Dublin, I won’t stand in the way.”

The debate over the future of Dublin has rumbled on for decades and is currently the subject of a report for the government by Irish consultants, Indecon. It is due to be submitted shortly, but Mr Connellan, who heads the Dublin Port Co, says he does not expect it to contain any surprises. A parallel but broader study into Dublin Bay is also considering the future of both Dublin and Dun Laoghaire ports.

The debate, however, has recently been re-energised by the proposal from a joint venture between the port of Drogheda and property developers Treasury Holdings to build a new €300m ($417m) port at Bremore, north of Dublin. The deepwater port — catering for container, ro-ro, bulk and passenger traffic — would have an annual throughput of 50m tonnes a year, more than Dublin’s current 30m tonnes. Hutchison Westports, the European arm of the Hong Kong port group, has been hired to develop and operate a “terminal master plan” and hydrographic surveys have been undertaken, with 2013 the target date for opening.

Mr Connellan, however, dismisses Bremore as a “property play” or a “property distraction”. He points out that Dublin has invested €250m over the last 10 years, while the government spent €1bn on building the tunnel taking Dublin port traffic under the city’s congested roads to the M1 motorway — evidence of a long-term commitment to the port’s future in the Irish capital.

More immediate concerns for the port executive include the collapse in trade that has seen tonnage in the first half of this year fall by 16%. That followed a full-year 4% decline in 2008 and Mr Connellan forecasts revenue this year will be down by €8m on the 2007 total of €70.5m.

Greenore, the port Dublin jointly owns with One51, the Irish private investment group, suffered a 35% fall in throughput last year — the steeper decline being attributed to its focus on bulk cargoes. A planning application has been made to expand the northeast port with a container terminal and ro-ro berth, but Mr Connellan says “the impetus for getting things done has waned”.

Despite the falls in throughput and revenue, the state-owned but self-financing and privately-managed port is still expected to make a profit and pay a dividend to the Irish state (it paid €4.32m last year.)

“Over the good years we had some strong rationalisation, so we are in a strong position,” the DPC head points out. The wage bill has been slashed from an “unsustainable” €21m in 2002 to the current €13m, enabling unitised terminal users’ costs to be nominally lower than they were in 1988.

With a further 20% reduction in costs across a range of port activities over the last 12 months, the port boss says: “ We are pretty well-positioned to weather the storm and we are keeping a constant watch on costs.”

He is also confident — “I am no doom-and-gloom merchant” — that the Irish economy can recover and is scornful of “uninformed comment” that the country is a tax haven and as such will suffer from the crisis-induced backlash against corporate offshoring.

Big Port Call
27 June 2009
Saigon Times Weekly

Development of big seaports will boost the competitiveness of Vietnam’s shipping industry and businesses as well

Vietnam has a long coastline of 3,260km which is home to more than 110 seaports, both big and small. However, the country still lacks big deepwater ports capable of receiving big vessels of 50,000DWT or more, which currently have to transit cargo to and from Vietnam at regional ports. The lack of deepwater ports and poor logistics services are affecting the development of the shipping industry and increasing the transport cost for import and export goods. Industry experts estimate that the transshipment of export cargo via ports in Hong Kong and Singapore cost local businesses more than US$1.7 billion a year.

Strong growth

Vietnam’s shipping industry has experienced strong growth in recent years. Over the past two years, the annual throughput at Vietnam’s seaports has exceeded 140 million tons. Transport experts forecast that some 200 million tons of goods will go through Vietnam’s seaports annually by 2010, and the figure will rise to 340 million tons per year in the subsequent 10 years. That means the country will have to secure big funds for port development so as to double its handling capacity by 2010 and to quadruple it by 2020.

Despite the strong growth, investment in Vietnam’s port system has been dispersed, resulting in low efficiency, overburdening, and a lack of ports capable of handling big vessels. To improve the situation, Vietnam Maritime Administration has proposed that investment should be focused on large-scale seaports and port complexes to improve efficiency and prevent rampant development. The administration is preparing a revised master plan specifying that only projects to build ports able to handle vessels of more than 50,000DWT should be allowed. Detailed zoning plans and investment policies are being drafted in line with this orientation. In the future, priority will be given to development of key seaport projects. These include Cai Lan, Dinh Vu and Lach Huyen ports in the north, Nghi Son, Vung Ang, Chan May, Danang, Dung Quat, Quy Nhon and Van Phong ports in the central region, and Ben Dinh-Sao Mai, Thi Vai-Cai Mep, Hiep Phuoc, Cat Lai and Can Tho ports in the south.

To carry out the development plan in the next four years, Vietnam needs about US$4 billion. Transport experts said that one quarter of the total fund should come from official development assistance, while another quarter will come from the State coffer, and the remainder from the private sector.

Investment

Over the years, domestic importers and exporters have been unable to compete with those in Southeast Asia and China, Hong Kong and Japan because they have to shoulder transshipment charges for using ports in Singapore, Hong Kong, Pusan and Thailand. Therefore, investment in the development of big deepwater ports is a correct policy for Vietnam’s shipping industry, as it can help improve the industry’s competitiveness as well as reduce the cost for both importers and exporters.

Since 2007, many local and foreign developers have poured money into large-scale seaports, such as a deepwater seaport in Tan Thanh District of Ba Ria-Vung Tau Province developed by Saigon International Terminals Vietnam Ltd., a joint venture between Saigon Trade, Investment and Construction and Hong Kong’s Hutchison Ports Group. Other big names include one international seaport being developed by Saigon Port and Denmark’s A.P. Moller-Maersk Group, another port as a joint venture between Vinalines and SSA Marine (U.S.), and Cai Mep-Thi Vai port complex financed by Japan’s ODA funds. All these big port projects are in the southern province of Ba Ria-Vung Tau.

On June 3, Tan Cang-Cai Mep deepwater seaport in the southern province of Ba Ria-Vung Tau received the first and biggest container vessel ever to call at a Vietnam port. The 73,000-DWT vessel MOL Premium of Mitsui O.S.K. Lines is 294 meters long and has a loading capacity of 6,350TEUs. The event marks a milestone in Vietnam’s shipping industry, as part of its seaport system can now receive big vessels of over 50,000DWT.

Tan Cang-Cai Mep Port is operated by Tan Cang-Cai Mep Container Terminal Joint Stock Company, a unit of the military-owned Saigon Newport. It is designed to have 60 hectares of container yard and a total berth length of 900 meters to accommodate vessels of up to 80,000DWT. The designed capacity in phase one is 650,000TEUs a year. Saigon Newport is working on the second phase with 600 meters of berth and 40 hectares of container yard. The company has established a joint venture with Hanjin Shipping, Mitsui O.S.K. Lines and Wanhai Lines to manage and operate the second phase scheduled to be up and running by end-2010.

Also late last month, another big vessel, the 60,000-DWT Singapore-flagged APL Alexandrite, berthed at the SP-PSA International Port in Ba Ria-Vung Tau Province. The SP-PSA International Port, whose first phase is completed after one year and a half of construction with total investment of US$210 million, is a joint venture between the State-owned Vietnam National Shipping Lines (Vinalines), Saigon Port (SP) and the Port of Singapore Authority (PSA). The port, which can handle vessels of up to 80,000DWT and 1.1 million twenty-foot-equivalent units (TEUs) per year, is expected to help meet Vietnam’s rapidly growing container traffic demand and become a major shipping hub for the Asia-Pacific region. Upon completion of the second phase, it will have total annual handling capacity to 2.2 million TEUs, or some 25 million tons of goods.

Tan Cang-Cai Mep and SP-PSA ports are part of the seaport development master plan known as Port Group 5 prepared by the Transport Ministry, which includes seaports in HCM City, Dong Nai and Ba Ria-Vung Tau provinces. Deputy transport minister Tran Doan Tho said the ministry was making effort to accelerate the development of seaports in Ba Ria-Vung Tau to make the area the center of Vietnam’s and the world’s shipping routes.

Soon after the Tan Cang-Cai Mep and SP-SPA ports were operational, some international shippers like MOL and APL began to think of choosing Vietnam as a new transshipment hub for their trans-Pacific routes, as the country has a central position in Southeast Asia and the cost is lower than transshipment at other regional hubs such as Singapore and Hong Kong. Ship owners estimate that shipping a container from Cambodia to the U.S. via Vietnam can reduce the travel time by one week and save US$200-300 as compared with transshipment in Singapore or Hong Kong.

Meanwhile, in HCM City, construction of Saigon-Hiep Phuoc Port by the Soai Rap River in Nha Be District started in mid-May as part of a plan to relocate ports in inner HCM City to the suburb. Upon completion of the first phase in 2011, the port will be able to handle 8.7 million tons of cargo a year. After the second phase is completed in 2014, it will be able to handle 18 million tons of cargo per year and receive ships of up to 50,000DWT. The project, a US$245-million venture between P&O Ports-Dubai World and Tan Thuan Industrial Promotion Company, is seen as the biggest container terminal in HCM City.

Construction of Saigon-Hiep Phuoc Port is the first step of the Government’s plan to move key ports in the inner city to outlying areas to help them meet international standards and raise competitiveness. The port will facilitate export-import operations and the development of the port complex in southern HCM City.

In a move to speed up the development of Vietnam’s first international transshipment port in Van Phong Bay, Khanh Hoa Province, the Government has allowed the project owner to assign contractors for a number of works. With the advantage of being 22 meters deep and located near major international shipping routes, Van Phong Bay has the most favorable position to become a big international transshipment port in the region. According to maritime experts, if properly developed, the port in Van Phong may receive super big container vessels that have transport capacity of 9,000-12,000TEUs.

The Government also allowed the assignment of contractors for the Lach Huyen Port in Haiphong, which is designed as an international gateway and transit port for the northern region. After completion, the port will be able to accommodate container vessels of 60,000-80,000 DWT.x

Group Throughput
Source : http://www.hph.com/about/throughput.aspx

http://img.photobucket.com/albums/v81/asiaglobe/hph.jpg

Years Grand Total (millions of TEU) Growth over previous years
2008 67.6 2.0%
2007 66.3 12.0%
2006 59.3 15.0%
2005 51.8 8.0%
2004 47.8 15.0%
2003 41.5 16.0%
2002 35.8 32.0%
2001 27.0 6.0%
2000 25.3 40.0%
1999 17.9 27.0%
1998 14.1 7.5%
1997 13.1 16.3%
1996 11.3 10.2%
1995 10.2 21.5%
1994 8.4 49.1%

Govt to launch new tender for Manta port concession
23 July 2009
Business News Americas

Ecuador's government will continue plans to develop a deepwater port in Manta, in spite of problems with previous concessionaire TIDE, controlled by Hong Kong-based Hutchison Port Holdings (HPH), President Rafael Correa said.

Authorities will transfer the concession to a new company which will mean calling a new international tender, the presidential website reported.

Since the port has been managed by Manta port authority (APM) revenues have improved considerably, according to Correa.

Meanwhile, APM will start works to increase draft at the port from 18m to 20m.

FAILED CONCESSION

In February this year TIDE announced it was leaving the port and withdrawing from the concession.

The firm accused APM of trying to modify the document unilaterally.

HPH was the only company to submit an offer for the port's concession in January 2006.

The company offered to invest US$523mn during the 30-year concession to build a deepwater port capable of handling 2.2mn containers a year.

According to reports, authorities wanted TIDE to invest an additional US$55mn in the construction of a fishing port located next to Manta's cargo terminal.

However, APM said it did everything in its power to reach agreements with TIDE on adjustments to the concession contract so that the project could be carried out, but the concessionaire decided to abandon the project in spite of these efforts.

FORMER Felixstowe port boss Chris Gray has retired for a second time - leaving...
22 July 2009
Evening Star

FORMER Felixstowe port boss Chris Gray has retired for a second time - leaving his post in the Bahamas.

Mr Gray retired as chief executive of Felixstowe port in early 2002, but within a few months Hutchison Whampoa had tempted him back into the world of work with the job of running Freeport Container Port, 65 miles from Florida.

Now after seven years of building up business in the Caribbean, he has handed over the reigns to Gary Gilbert, who is also a senior vice-president of Hutchison Port Holdings.

Mr Gray's brief on setting out from Felixstowe - where he was boss for three years and previously Contship Containerlines for 21 years - was to increase business at Freeport.

He has helped turn it into a major transhipment hub handling around 1.7 million standard-sized boxes a year with further development lined up to boost capacity by 30 per cent.

APM resumes control of Manta port
27 July 2009
Business News Americas

The government of Ecuador has come to an agreement with Hong-Kong based Hutchison Port Holdings (HPH) to resume the administration of Manta port in Manabí province, local press reported.

HPH will hand over its shares in Terminales Internacionales de Ecuador (TIDE), which managed the concession, to the Manta port authority (APM).

The agreement consists of transferring the total share capital of TIDE, valued at around US$5mn, to APM as well as all other assets the company has at the port. HPH will also return tax breaks worth over US$1mn to the government. APM will also be allowed to use the installed software for port operations until June 2010.

At the same time, HPH will deposit an additional US$2mn in TIDE's account and renounces all rights over the US$18mn that was invested in the port.

APM will be in charge of the share transfer which is expected to be completed in August.

President Rafael Correa said last week that authorities plan to call a new international tender to transfer the concession to a new company.

IMPROVEMENTS

Meanwhile, APM has designed a plan to improve the port's infrastructure, such as dredging the access canal to a 12.5m draft and reinforcing the Muelle 2 docking area.

The project also consists of building a new 400m dock and a 7ha container handling area which can be expanded to 18ha. This will be carried out over a three-year period and will provide Manta port with a draft of 18-20m, reports said.

FAILED CONCESSION

In February this year TIDE announced it was leaving the port and withdrawing from the concession.

The firm accused APM of trying to modify the document unilaterally.

HPH was the only company to submit an offer for the port's concession in January 2006. The company offered to invest US$523mn during the 30-year concession to build a deepwater port capable of handling 2.2mn containers a year.

According to reports, authorities wanted TIDE to invest an additional US$55mn in the construction of a fishing port located next to Manta's cargo terminal.

However, APM said it did everything in its power to reach agreements with TIDE on adjustments to the concession contract so that the project could be carried out, but the concessionaire decided to abandon the project in spite of these efforts.

Hutchison Whampoa H1 net profit down 33 pct

HONG KONG, Aug 13 (Reuters) - Ports-to-telecoms conglomerate Hutchison Whampoa said on Thursday that its first-half net profit fell 33 percent on narrower one-off gains, a steep drop in container throughput and continued losses in its European 3G mobile phone business.

Net profit for January-June was HK$5.76 billion ($738 million), it said, down from a restated HK$8.59 billion a year earlier.

Losses from the company's 3G business narrowed 66 percent to HK$1.81 billion.

The profit beat a consensus forecast for a profit of HK$3.59 billion by six analysts polled by Reuters.

Hong Kong billionaire Li Ka-shing's flagship, one of the top industrial conglomerates in Asia-Pacific by market capitalisation, also holds stakes in property, energy and retail businesses.

The widely diversified group had been kept afloat in recent years by one-off gains, which especially spared it from the worst impact of the global economic downturn.

Shares in Hutchison Whampoa, which also holds stakes in property, energy and retail businesses, rose more than 30 percent in the first half, outperforming the benchmark Hang Seng index. On Thursday the stock rose a further 2.55 percent.

Hutchison upbeat despite decline
14 August 2009
Lloyd's List

THE global recession has started to ease but a global recovery is not yet a certainty, according to Hong Kong ports giant Hutchison Whampoa chairman Li Ka-shing.

The conglomerate’s ports division, Hutchison Port Holdings, yesterday revealed just how badly it had been hit by the downturn in the global economy after announcing a 35% drop in net profits.

According to the first-half results, the division handled 30.3m teu, representing an 8% decline on the same period in 2008. Net profits were down to HK$4.4bn ($567.7m) compared with HK$6.8bn in the first half of 2008, while total revenues fell 21% to HK$15.6bn.

The company said that the stark reduction in global trade volumes that beset the fourth quarter last year and first quarter of 2009 had now begun to bottom out, “albeit at lower levels, well below 2008”.

Hutchison’s port management implemented cost-cutting measures during the first half in a vain attempt to achieve a net reduction similar to that of revenues.

“The full effect of many of these [measures] is expected to be realised in the second half of the year,” the company said in a statement.

“Although trade volumes are normally seasonally higher in the second half of the year, the group’s current expectation is that trading activity will recover slowly, presenting a continuing challenge to the division’s full-year earnings prospects.”

Mr Li said the global recession had begun to ease and he was encouraged by rebounding commodity and assets prices.

“With the strong backing of the various national governments, the economic contraction in the US and European countries is less severe than expected,” he said in a statement.

He added that the mainland Chinese economy was probably set for steady improvement, helped by Beijing’s stimulus policies, but cautioned that a global recovery was not yet a certainty.

The main contributors to the decline in the division’s overall throughput were its port operations in Hong Kong and the mainland, where throughput fell 11% over the period.

More severely hit were the ports in Asia where throughput fell 15%.

The fall in box volumes at Hong Kong was exacerbated by the resumption of cross-strait ties between Taiwan and the mainland that were instigated at the start of the year. As a result, significant box volumes that might have gone through Hong Kong went direct to Taiwan instead.

According to the latest figures available, Taiwan’s port of Kaoshiung received 165,000 teu direct from the mainland in the first three months of the year.

Net income fell 24% at Hong Kong and mainland ports, and a massive 40% at its ports in Europe, which include the UK, Germany, Belgium and Italy.

Hutchison Whampoa, which also has retail and property revenue streams, said its overall revenue declined 20% to HK$141bn.

Net income fell 44% to HK$19.8bn.

Yantian opens inland box site
19 August 2009
Lloyd's List

YANTIAN International Container Terminals, part of Hutchison Port Holdings, has opened its first inland container depot in Dongguan, southern China, writes Keith Wallis.

The facility will complement a similar inland depot operated by a Hutchison offshoot at Baoan in Shenzhen.

The Dongguan depot, which covers 3.1 ha and has a storage and repair capability for 8,000 teu, will allow shippers to pick up empty containers and drop off import containers that have been unpacked.

This will save shippers the 150 km round trip between Dongguan and Yantian.

Ensenada port administrator invests US$17mn in dredging works
27 August 2009
Business News Americas

API de Ensenada, the state administrator of Mexican Baja California's Ensenada port, invested 220mn pesos (US$16.6mn) to dredge the bay area in 2008 and 2009, the entity's commercial manager, César Rivera, told BNamericas.

The investment was covered with federal funds and works were recently completed.

The administrator decided to take advantage of the reduced movement in the port, caused by the global financial crisis, to carry out the improvement works, said Rivera.

"We were able to invest and prepare the port for when the market recovers," said Rivera, adding: "By then, we will be even more competitive than before."

Previously, Ensenada port was able to handle ships with a maximum capacity of 5,500 TEUs, but it can now handle ships with capacity up to 7,500 TEUs, Rivera said.

Due to the financial crisis, TEUs handled at the port declined 75.4% from 127,271 in 2007 to 31,329 in 2008.

The amount of TEUs handled in 2009 so far shows a drop of about 30% compared to 2008.

According to market players, port activity should begin to pick up in 2010.

Ensenada's container terminal is operated by Ensenada International Terminal, controlled by Hong Kong-based Hutchison Port Holdings (HPH).

Top Chinese legislator visits Bahamas to sign economic agreements and promote cooperation
3 September 2009

NASSAU, Bahamas (AP) - China's top legislator is promoting several economic agreements during a visit to the Bahamas, including construction of a national sports stadium.

Wu Bangguo, chairman of the National People's Congress, arrived Thursday with a trade delegation and is scheduled to meet with Bahamian leaders over four days. He is the highest ranking Chinese official to visit the Bahamas, according to a statement from the Chinese Embassy.

Wu expects to sign an agreement on protecting Chinese and Bahamian investors and another that would provide a $200 million loan to build a highway to Nassau's international airport.

A third deal would guarantee Chinese economic support for an $18 million stadium that is under construction in this Caribbean nation and already has benefited from a $7.3 million grant from Beijing.

China has been developing economic interests since the Bahamas opened diplomatic relations in 1997. Hutchison Whampoa (China) Ltd. is a majority shareholder in the Freeport container port and a top investor in the Our Lucaya Beach & Golf Resort in Grand Bahama.

China has funded several projects in the region, including a multimillion-dollar cricket stadium in Grenada. It has offered Dominica a $40 million loan for projects including renovation of major roads, and it made a similar offer to the South American country of Guyana for updating its electrical system.

Hutchison to expand at Shenzhen
11 September 2009
Lloyd's List

HUTCHISON Port Holdings will expand its cargo handling capabilities in Shenzhen in southern China with the development of two export-orientated warehouses each covering more than two hectares, writes Keith Wallis in Hong Kong.

The facilities will be built and operated by Shenzhen Hutchison Inland Container Depots. Construction of the first warehouse will start this month for opening in 2010, while the second is scheduled to be completed by 2011.

Company spokesman David Fang said a second phase covering 25 ha is being planned and would be developed according to demand.

He declined to say how much was being spent on the two phases, which are located at Guanlan in Shenzhen’s Baoan district, about 40 minutes from Yantian International Container Terminal.

However, Mr Fang said that when completed the depot would have a total area of 60 ha and would be the largest warehousing facility in south China.

He added that export cargo entering the warehouses would be immediately eligible for tax rebates and would be cleared by customs. This meant containers could be transported by truck to Yantian for immediate loading on board container ships.

Mr Fang said the facility would offer container storage, inspection, labelling, barcoding, wrapping, sorting and associated logistics-type services, although he pointed out there would be no storage facilities for refrigerated cargo.

YICT Launches Cost-effective Direct Feeder Service and Inland Depot Solution for Customers
Press Release

[24 September 2009 – Shenzhen] Yantian International Container Terminals (YICT) is pleased to announce the launch of its first direct feeder service for Nine Dragons Paper (Holdings) Limited. The new service will run directly from YICT to the factory of Nine Dragons Paper in Xibeisha, Dongguan.

The Yantian-Xibeisha Feeder Service will enable Nine Dragons Paper to directly receive import containers at its factory by barge, which is a more cost-effective and less carbon intensive mode of container transport. YICT has allotted a container storage area within the terminal for this feeder service and made special arrangements with China Customs and the Entry-Exit Inspection and Quarantine Bureau to allow for on-site cargo inspection and disinfection. Additionally, YICT has provided the inspection facilities and manpower needed to ensure the quick transfer of cargo onto barges.

To complement the new feeder service, YICT has opened a five-hectare inland container depot in Shunde, Foshan City. The new depot offers a convenient area for storage of the containers unloaded by Nine Dragons Paper.

After the containers are returned to the neighbouring depot, cargo owners in Shunde can then load and ship them to Yantian Port for export. This new solution will help increase the empty container turnaround rate and ultimately reduce storage costs for shipping lines. It will also help barge companies slash costs incurred by empty container returns.

Mao Jiayin, Export Department Manager of Nine Dragons Paper, supports this view: “The new Yantian-Xibeisha Feeder Service is a new breakthrough in logistics services in South China. The new solution will substantially improve logistics efficiency and provide a safer, more cost-effective and less polluting logistics alternative for cargo owners.”

Port expansions seek to break duopoly
27 October 2009
Australian Financial Review

It is anticipated that the Port of Melbourne Corporation will approach the Victorian government in the coming months with a $1 billion expansion scheme that would include a third operator. The move along with the call from the Australian Competition and Consumer Commission for new faces on Australian ports would place Asciano’s Patrick and DR Worlds P&O duopoly under substantial pressure. The proposal has already met with criticism with the Maritime Union of Australia wanting any outcome delayed saying that disreputable’ overseas stevedores would weaken work practices. Recently the Port of Brisbane appointed Hutchison Ports to operate berths coming on line in 2012 and 2014 and the Sydney Ports Corporation is on the verge of announcing its choice to assist in its $1 billion growth at Port Botany.

The addition of new operators in Brisbane and Sydney according to Asciano managing director Mark Rowsthorn will see our port facilities become some of the least efficient in the world.’ Analyst Ian Myles of Macquarie Research said that additional quayline is going to increase competition.’

Stevedores braced for market share challenge
20 November 2009
Lloyd's List

AFTER dominating the market in the past decade, major Australian container stevedores Patrick and DP World are both preparing for a struggle for market share as the battleground opens up.

What is not clear is how that will happen. The smart money is on Hutchison Port Holdings (HPH), which holds a 42-year lease on Brisbane’s Berths 11 and 12 and which should have them operational by 2012 and 2014 respectively after spending more than $200m on the initiative. This will make Brisbane the first port in Australia to introduce a third container stevedore.

HPH, which refused to comment on its Australian plans, is to extend its range in the country. The common perception is that, to offer a competitive rate and keep the lines happy, HPH, if it does become the third stevedoring force, will need to have presence in all the major box ports, like the duopoly does.

To do so effectively, the company will have to invest a least as much again in at least two ports, the port of Melbourne and Sydney’s Port Botany. The state government owners of each, Victoria and New South Wales respectively, are making progress with their infrastructure: Victoria advancing plans to convert part of Webb Dock and NSW having its new quay space under way.

Mystery surrounds what is generally regarded as the last piece in the jigsaw that would allow basic coverage for international container lines: Fremantle.

Western Australian infrastructure minister Simon O’Brien has sought a review of the port’s planning needs and to force co-operation between the state-owned Fremantle Ports and private local consortium James Point on a greenfield development to take over from space-constrained Fremantle.

When serious development on the new site will begin remains unclear.

Meanwhile, the latest latest Bureau of Infrastructure, Transport and Regional Economics report on container handling performance came out this month.

The so-called Waterline report, which measured the last half of last year, showed a five-port average crane rate steady at 27.5 containers per hour.

However, there were some improvements in other areas. The port interface cost index for exporting a container fell from A$619 per teu in real terms based on 2001 prices in the first half of the calendar year, to A$609 per teu, while importing costs fell from A$662 to A$652.

Total ship visits increased 2.9%, while the average vessel working rate increased over the period from 38.6 containers per hour in the September quarter to 40.7 an hour in the December quarter.

The average container turnaround time improved from 26 minutes in the September quarter to 24.6 minutes in the December quarter.

The average truck turnaround time also improved from 40.6 minutes in the September quarter 2008 to 38.1 minutes in the December quarter 2008.

Thamesport Samsung facility keeps growing
24 November 2009
Lloyd's List

A PORTCENTRIC facility set up for Samsung at London Thamesport has grown so much that it now occupies four warehouses totalling more than 250,000 sq ft.

The system, run by NYK Logistics, was set up in June 2008 and is continuing to grow rapidly, said NYK Logistics’ Samsung account director Colin Hill.

“We provide Samsung with a significant cost reduction in its supply chain and the ability to manipulate and control stock differently and get stock to the point of delivery quickly,” he said.

NYK Logistics is responsible for most of the delivery to major retail names of a wide range of white goods imported by Samsung through Thamesport, and the system also allows for collections from the port facility by some customers.

Thamesport, which is owned by Hutchison Ports (UK), has also developed a portcentric facility for imported resin, which arrives in lined containers and is stored in silos.

Callers at the port include Evergreen, Hyundai and Hapag-Lloyd. It is to lose Maersk’s River Plate service, but has gained a new one in the past month with Team Lines’ decision to include Thamesport in its network. The new service was marked by the arrival of the 1,118 teu El Temerari, which operates on the North Europe-Iberian service with its sistership El Bravo. The rotation is Thamesport, Rotterdam, Lisbon, Vigo, Leixoes, Antwerp, Thamesport. Team Lines will also, via its brand Delphis Logistics, be offering door-to-door services to and from the UK.

Operators show signs of getting back on course
27 November 2009
Financial Times

One sign that the big container terminal operators are getting a grip on costs to offset the sharp downturn in volumes is contained in the scant financial data available for the year so far, which shows that the sector remains profitable.

Hong Kong's Hutchison Ports reported a 53 per cent fall in operating profit to HK$4.49bn (US$579m), on revenue down 20 per cent to HK$15.6bn. The falling profitability mainly reflects the operator's heavy exposure to the gradually declining port of Hong Kong, where there is little opportunity to boost profitability by slowing down capital expenditure.

DP World, the most bullish of the big operators in its expansion plans, reported 18 per cent drop in earnings before interest, tax, depreciation and amortisation (ebitda) to $535m on revenues down 13 per cent to $1.38bn in the first six months. Ebitda margins fell 2 percentage points to 39 per cent.

Remarkably, in the first nine months of 2009, APM Terminals reported a 15 per cent increase in profit before amortisation, depreciation and impairment losses to $534m, helped by a 4 point jump in its margins to 24 per cent. Revenues, helped by a jump in capacity due to terminal expansion, fell from $2.34bn to $2.22bn.

Singapore's PSA releases only annual figures.

Amsterdam terminal faces mothballing after state veto
3 December 2009
Lloyd's List

AMSTERDAM’s municipal authority has ruled out state funding for the city’s container terminal, operated by Hutchison, which will lose its last remaining major shipping line call in January.

Bartho Boer, a spokesman for the city authority with responsibility for the box hub, said that temporary suspension or mothballing of Amsterdam Container Terminal was an “option” although the final decision rests with the operators.

“I do not think it is a realistic scenario that the city will fund ACT,” Mr Boer said. “We have said to ACT that whenever they want to discuss alternatives they can turn to us for consultation.”

ACT local management declined to comment on the situation and the Hong Kong-based parent, Hutchison Port Holdings, stated: “It is company policy that we do not comment on commercial or development issues.”

Mr Boer added: “It is not known yet whether the terminal will be mothballed. It is up to the operator as to whether it is a wise economic decision to mothball the terminal for a couple of months or for a year, for example.

“The operator has to determine whether it has alternative plans for the terminal after January. But mothballing is certainly one of the realistic options.”

ACT, then known as Ceres Paragon, officially opened in the summer of 2001 but has always struggled to attract operators. HPH took its majority ownership in December 2008.

Although a number of European terminal operators are known to have pressed the European Commission to approve possible state bailouts, ACT management has not approached the city for funding, Mr Boer confirmed.

“ACT is completely independent of the municipality but we have said to the operator that if we can help you, then the door is always open for consultation. There are a number of ways that we as the city can help and advise them to get through this period.”

The city is not a shareholder in ACT, which employs 140 staff, but was heavily involved in establishing the original Ceres terminal.

Hutch to gain berths at Port Botany
16 December 2009
The Australian

NSW Ports Minister Paul McLeay, a veteran of more than a month's standing since then-premier Nathan Rees tipped his predecessor Joe Tripodi out early last month, is reportedly about to announce that the biggest stevedoring group in the world, Hutchison Whampoa of Hong Kong, will be allocated up to five berths at Port Botany.

That will make Li Ka-Shing's operation one of three stevedores at the port alongside Asciano's Patrick operation and DP World, the Dubai-owned outfit that has just flown through a nasty financial air pocket.

We gather Hutch will have about the same space as each of the other two, except that its berths haven't been built yet. Air travellers landing at nearby Mascot are still watching $1 billion worth of new wharves taking shape and to our unpractised eye they may not be ready for at least a year, although Hutch will apparently get one operating berth pretty soon.

Port Botany is the second-biggest container port in Australia after Melbourne, which does just over two million TEUs (Twenty foot equivalent units) a year against about 1.7 million at Port Botany. Those two plus Brisbane collectively handle about 75 per cent of Australian container traffic.

Llew Russell of shipowning body Shipping Australia welcomed the report, saying ``if it's correct it will bring a warm glow to the heart of Graeme Samuel'' at competition watchdog the ACCC by adding an alternative to a duopoly.

He said Hutch was recently granted two berths at Brisbane's Fishermans Island port and that Melbourne's Webb Dock was being upgraded with a view to allowing in a third stevedore in 2013.

``Stevedoring contracts are awarded on a national basis so it makes a fair bit of sense to have the same three operating at the three biggest ports,'' he said.

Port Botany's upgrade courtesy of NSW taxpayers is coming not a moment too soon, with truck drivers getting cranky about having to queue for four hours.

Consultant charged

SYDNEY management consultant Andrew Dalzell, 48, was yesterday charged in the Downing Centre local court with insider trading in November 2006. Corporate regulator ASIC, which investigated, alleged that while he was working as a senior manager at KPMG he bought 40,000 shares in printing group Promentum at a time when he had inside information about a proposal by Promentum to acquire another printer, the MacMillan group. Dalzell, from Randwick, was given bail and will appear again before the court on February 2.

And in unrelated proceedings, ASIC revealed yesterday that Noel James Stephenson of Pymble in Sydney, who had been charged in October with insider trading, pleaded guilty in the same court on December 1 to one charge. ASIC had alleged that he breached the Corporations Act on April 26, 2005, by selling 4514 shares in Sam's Seafood when he knew that financier Rabobank was considering calling in several loans it had made to the company.

At that time the stock was worth about $1 a share, but it later went into administration. The company has since been reconstructed and is now exploring for coal in Indonesia.

Stephenson will appear in the NSW Supreme Court for sentencing on February 5.

Q Copper extension

CAPE Lambert Resources has lost about $32 million from the delay of its Q Copper float -- the biggest resources offering this year -- but will hold the same amount of equity in its spin-off as originally proposed.

Tony Sage's Cape Lambert yesterday formally extended the closing date of the Q Copper IPO to February 3 after the float hit the skids last week when 25 per cent of investors brought in by Sage failed to settle their obligations.

Q Copper was believed to have had commitments for the full $203m priced at $1 before the investors, understood to be British institutions brought in by British broker Mirabaud Securities, came temporarily undone. They're understood to have been very keen on the float but got blindsided by problems in Dubai, hopefully now fixed.

Lead manager of the float, Patersons Securities, confirmed the delay last Friday as it moved quickly to assure it had oversubscriptions for its 75 per cent of the float.

Cape Lambert, which is divesting its Lady Annie mine into Q Copper, said the IPO was now seeking a minimum of $164.5m, with Cape Lambert to receive $137.5m -- down from $169m -- but it would hold its 15 per cent stake post IPO. A new prospectus has been lodged with ASIC and the issue price remains unchanged at $1.

Sage said he was disappointed about the delay but Cape Lambert shareholders, who will vote on the changes at a meeting ``on or about'' January 4, would still receive a 10 cent special dividend from the sale.

Hutchison grp seeks more time to pay for Turk port

ANKARA, Dec 24 (Reuters) - Hong Kong's Hutchison and its Turkish partners have asked for more time to pay for the rights they won to operate a major port on Turkey's Aegean coast, one of the companies told Reuters on Thursday.

It is the third time the consortium, which also includes Global Investment Holding and EIB-Limas, has sought more time from the state's Privatisation Administration to secure financing for the rights to run the port at Izmir, a major export hub.

The group made the winning bid of $1.275 billion for the 49-year contract in 2007.

"We have asked for an additional four months, or until April 30, 2010, to find a new partner and financing," EIB-Limas chief executive Sabri Unluturk told Reuters.

Deutsche Bank , which had a 24 percent stake in the venture, quit the consortium earlier this year.

Government to promote Manta port among Spanish investors
23 December 2009
Business News Americas

Ecuador's ambassador to Spain, Galo Chiriboga, will promote investment opportunities in Manta port among Spanish companies, local paper La Hora reported.

The ambassador met with Manta port authority APM on December 21 to learn about the facility's projects that could be of interest to Spanish firms.

"As representatives of the Ecuadorian government in Spain, we [at the embassy] want to promote a number of projects," Chiriboga said.

The government is looking to promote strategic development initiatives among Spanish investors, and Manta port is one of them, said the ambassador, adding that other countries have already expressed interest in the terminal.

The government is also looking to promote Manabí province, where Manta port is located, as a development hub for the country, the report said.

In February this year, Manta port's concessionaire TIDE, controlled by Hong Kong-based Hutchison Port Holdings (HPH), announced it was leaving the port and withdrawing from the concession.

HPH was the only company to submit an offer for the port's concession in January 2006. The firm offered to invest US$523mn during the 30-year concession to build a deepwater port capable of handling 2.2mn containers a year.

According to reports, authorities wanted TIDE to invest an additional US$55mn in the construction of a fishing port located next to Manta's cargo terminal, while the company refused to do so.

APM and HPH are reportedly still in negotiations over the termination of the contract.

Dock plan to pave way for competition
18 January 2010
The Sydney Morning Herald

THE east coast port duopoly is expected to be broken this month when a third stevedore company is approved in Melbourne.

Business sources expect an announcement by the Victorian Government this month of the redevelopment of Webb Dock for a new terminal. Strong support within the Government for the project follows market testing by the port manager, the Port of Melbourne Corporation, which found solid interest from potential operators.

While competition to Asciano/Patrick and DP World's P&O will be widely welcomed, the plan faces some hostility and Asciano is preparing for a legal stoush over its eviction from Webb Dock East.

The company has a lease until 2017 for its vehicle and bulk storage operation at Webb East. That lease will have to broken if, as expected, the Government wants a new container port running in 2013.

"Any decision to evict Patrick from this site prior to the end of our leases will significantly impact on both our operations and on our automotive, steel and break bulk customers," said the managing director of Asciano, Mark Rowsthorn. "If this were to happen, Patrick will fight hard to protect its rights and will seek significant compensation."

BusinessDay understands the port corporation would pay for the upgrade - expected to be as much as $1 billion - with initial borrowings from the Treasury Corp of Victoria.

State governments and port authorities have been under pressure from the Australian Competition and Consumer Commission and freight users for increased competition.

Queensland and NSW have chosen Hutchison Ports, owned by the Hong Kong billionaire Li Ka-shing, as their additional operator. Hutchison is understood also to be interested in Melbourne.

Previous attempts in the late 1990s and early 2000s to attract a third operator to Melbourne were unsuccessful. The breakthrough in Brisbane and Sydney, combined with big growth in trade, is likely to make the prospect more attractive now.

On Friday, the Victorian Government was noncommittal about a third operator and redevelopment of Webb Dock. "The Government is considering the business case ... with a decision to be made in due course," said Bill Kyriakopoulos, a spokesman for the Ports Minister, Tim Pallas.

The Government was unlikely to release the business case made by the Port of Melbourne Corporation because it contained "commercially sensitive information".

Further 10 percent cut in port charges under review
24 January 2010
Business Recorder

Port authorities here are considering to reduce port charges by at least 10 percent. This was stated by Karachi Port Trust (KPT) Chairperson Nasreen Haque in a welcoming ceremony marking maiden call of mv ''OOCL Charleston'' at Karachi Port.

She said that port charges had been rationalised by 30 percent during last seven years and further rationalisation by at least 10 percent was under review with the approval of Ministry of Ports and Shipping. Speaking as chief guest, she said: "We are honoured that one of the biggest shipping lines has chosen (the) Karachi Port".

She called it a proof and confirmation of the enlightened policy of partnership between the private and public enterprises. The KPT chief said that privatisation at Karachi Port had started with the Karachi International Container Terminal (KICT) which since its establishment in 1998 had fulfilled all of its targets and developmental phases in an impressive fashion. She said the latest facilities and equipment had increased handling capacity of the terminal by 750,000 TEUs.

Summing up the excellent performance of 20 percent growth made by the Karachi Port, she said that half of it (ie 10.6 percent) was alone made by the KICT. According to her, the KPT was deepening its navigational channel from 12 to 18 metres to accommodate mother ships. She said that a few days back a new rail track was opened for carrying coal from the port to interior.

Nasreen said that with the completion of Deep Draft Container Terminal, another venture of Hutchison Port Holdings (HPH), the Karachi Port would transform into a regional maritime icon. Earlier, in his address of welcome KICT Chief Executive Anjum Sajjad termed the KICT as pioneer of providing modern technology for container handling. He said the KICT being member of the HPH Group was benefiting from the cutting edge technologies and financial assistance that was strengthening the terminal''s foundation.

Later, Managing Director of OOCL S.L. John said that his company''s association with Karachi Port was 20-year old and his agents had been dealing in the country since 2007, when the OOCL had opened its operational office in the city. The distribution of mementoes by the KPT chairperson to the OOCL team concluded the ceremony.

Connellan prepares to set sail after 16 years of making waves
28 January 2010
Irish Independent

Technically, Enda Connellan has already retired. He's simply guiding the state-owned Dublin Port Company along by way of a contract, most likely until June, when a successor takes up the helm.

After 16 years as chief executive of the semi-state body that manages the country's largest port -- it's responsible for two-thirds of all container traffic moving in and out of Ireland -- Mr Connellan has presided over an era where the economy boomed first on the back of exports and then property: both surges helped boost the Dublin Port Company's bottom line.

Profits rose nearly 25pc in 2008 to €27m, while turnover was flat at over €70m. In 2009, net profits were €14.5m. This year, the figure will be down, but probably not significantly despite the state of the wider economy.

The seemingly insatiable appetite for consumer goods and new cars during the last decade fuelled significant growth at the port, while the sale of the controversial Irish Glass Bottle site netted the company €109m from the mind-boggling €412m purchase price near the peak of the market, in 2006.

Yesterday, Mr Connellan gave his final presentation on the annual traffic performance at the port, which even in the current climate still dealt with as much tonnage last year as it did in 2005 or 2006.

The 62-year-old Clare native, and fervent Munster rugby supporter, is a genuine sea dog, having bought his first sailing dinghy at the age of 16 and gone on to captain ships traversing various parts of the world before joining the port firm 32 years ago.

Perhaps that's why during the boom, and even later, the thought of the massive 250-hectare port landbank being largely vacated and developed into a major new office and residential hub -- or "yuppieville", as Mr Connellan disparagingly labelled it during an Oireachtas Committee hearing last October -- rankled with the chief executive.

Such plans had been proposed by the now defunct Progressive Democrats in 2002 -- they wanted to privatise the port and decamp its activities to outside the capital.

"People completely lost the plot," says Mr Connellan regarding such plans and the focus on property plays. At one stage, there was an estimate in the middle of the last decade that the port's land could fetch as much as €2m an acre, although the glass bottle site sold for the equivalent of over €17m an acre.

Distraction

"No senior politician or senior civil servant has discussed moving Dublin Port with me," he points out. "It was a valuation distraction," he adds, having previously described the property market as a "dangerous obsession".

He also shudders at the thoughts of what might have happened had outright privatisation of the port been pursued, or simply sold off.

"If the land had been sold off for property development, we wouldn't even be talking about Nama (the National Asset Management Agency)

now. We'd have nothing."

But when then Taoiseach Bertie Ahern appointed controversial businessman Joe Burke as chairman of Dublin Port in 2002, the writing seemed to be on the wall for the company, at least according to commentators.

Privatisation, perhaps worse, seemed inevitable. Not so, maintains Mr Connellan.

"I never felt that pressure from Joe," he explains. "Joe was chairman and a board director before that and he behaved as a chairman at board level."

Mr Burke was among the former Taoiseach's close friends who gave Mr Ahern money in 1994 as his marriage broke up.

He resigned from the port board almost this time last year after a High Court ruling the previous November restricted his role as a company director following the collapse of his building firm in 2007.

A year prior to that, he had become embroiled in unseemly events in Dublin after a complaint of sexual assault was made against him.

The port is now on an even keel again, however, with the recent appointment of Lucy McCaffrey to the post. She owns a management consultancy business.

Still, years after it was first mooted, the notion of Dublin Port's place in the city is still being pondered -- at least by those who don't work there.

The findings of a report published late last year, which had been commissioned by the Department of Transport on the facility's future, effectively said the best option for it was that it should remain in situ. A report prepared for Dublin City Council suggested the contrary -- that the port, at least in part, should be relocated to free up the area.

Bremore, on the Meath-Dublin border north of the capital, is where it's been suggested Dublin Port could move to. Plans have been afoot by Drogheda Port Company to develop a site there, while it selected a consortium that includes a subsidiary of property group Treasury Holdings and Hong Kong-based Hutchison Port Holdings to develop the facility. But that was then.

"I don't think it will go ahead," says Mr Connellan of Bremore's development, "but if they still think it's worth proceeding with, then I suppose it will."

The reality is, however, that the business case for Bremore has almost certainly evaporated -- at least in the medium-term, until sustained economic growth returns.

Meanwhile, a nearly decade-old plan to reclaim 20 hectares of land at the port has caused local controversy, but Mr Connellan maintains the development is essential if the facility is to be able to manage increasingly bigger vessels with deeper draughts.

The outcome of a lengthy hearing by An Bord Pleanala before Christmas should be made known by March or April. Locals fear the plans will result in additional flooding of their homes, while environmentalists say the impact of the reclamation would be detrimental to marine life, birds and other wildlife.

"We went through a very vigorous hearing with An Bord Pleanala. Anyone who's going to be affected by any development has a right to have a say in it.

"We need deeper water near land so we can efficiently move goods from ships to land," he says. "We have bigger ships needing bigger berths."

Mr Connellan says he won't pre-empt the findings of An Bord Pleanala, and adds that there is no back-up plan if the decision doesn't go Dublin Port's way. "You'll just end up doing things less economically. That's the only way that I see it."

Mr Connellan says that, during his tenure, Dublin Port has become more efficient and cost-effective, but it's plans for his retirement that are probably largely swimming around his mind at this stage.

"I'm going to go sailing," he says. "It may sound like a busman's holiday, but I started my career at sea and I intend to do a lot of sailing."

A round-the-world trip isn't on the agenda, he says, but an adventure across the Atlantic is.

Throwing off the bowlines will no doubt never have felt so good.

Activists target Li's Myanmar investments
6 February 2010
SCMP

Myanmese activist Khin Omar said yesterday businessman Li Ka-shing should either put pressure on the Myanmar junta to democratise or get out of her country.

She said the head of Cheung Kong (Holdings) had a responsibility as an investor in the Southeast Asian regime's logistics industry to influence the government and not permit it to perpetrate war crimes against its own people.

Khin Omar, the co-ordinator of the non-governmental organisation Burma Partnership in Mae Sot, Thailand, was invited here by the Hong Kong Coalition for a Free Burma.

She led a group of demonstrators from the Sun Hung Kai Centre in Wan Chai yesterday in a bid to protest outside the Myanmar Consulate.

They were stopped by police officers and the building's security men.

"They told us the Myanmar Consulate is shut - for a holiday," said one of the demonstrators.

Some wore masks depicting democracy leader Aung San Suu Kyi and waved placards for democracy in Myanmar. The small group then moved on to Cheung Kong Center in Central, where they passed a petition to a company representative inside, while shouting "Free Burma" and "Election not selection" outside.

"I would like Cheung Kong to be ethically and socially responsible for their business in Burma (Myanmar)," said Khin Omar. "They should not allow the Burmese government to use their money to commit war crimes against their own people."

Khin Omar said Li's money indirectly paid for weapons used on Myanmar's people. She also said his port operations could allow ships in that had weapons on board.

"Recently a North Korean ship headed for Myanmar was turned back by the Americans, but it would have come through his port," she said.

Hutchison Whampoa invests in Myanmar through subsidiary Hutchison Port Holdings which operates the Myanmar International Terminals Thilawa in Yangon.

A spokesman said Hutchison Port Holdings made a port investment in 1996 when Myanmar was in the process of being accepted into the Association of Southeast Asian Nations, expecting the country to be opened up.

"We are still hopeful our investments can help to spur economic improvement and that economic progress of the country will bring about overall benefits to the community in the longer term," the spokesman said, adding Hutchison Port had offered scholarships to Myanmar Maritime University since 2004.

Harwich: bathside Bay plans for 2021
9 March 2010
Harwich and Manningtree Standard

A FRESH bid has been made to stall a major development at Harwich by five years.

Permission to develop Bathside Bay was granted following a public inquiry in 2006.

The plans, which were backed by residents, included an operational container port and would create a total of 700 jobs.

Conditions on the port were for applicant Hutchison Ports to fund improvements to the Harwich to Hare Green section of the A120 before any building work could get under way.

The time limit for those plans is due to run out in 2016 - but now fresh plans have been submitted to Tendring Council to replace them.

They ask for planning permission for the site to be extended until 2021.

The extended time frame opens potential for a wind farm at Bathside Bay and to upgrade the A120.

A tricky balancing act for planners
By Robert Wright, Transport Correspondent
26 March 2010
Financial Times

Even from miles away, the huge cranes of the Port of Felixstowe dominate the flat, East Anglian landscape around the River Orwell. Beneath them, the silhouettes of huge ships are a reminder of the significant advantages the port - and others in eastern England - enjoy from their proximity to the shipping lanes through the English channel.

The demands of such international gateways loom over the East of England's transport plans as much as the cranes dominate the Suffolk horizon. The region is home not only to leading ports at Felixstowe, the UK's busiest container port, and Tilbury but also Stansted Airport, the UK's third-busiest.

It has to balance the demands of traffic to and from these vital facilities with catering to growing population and employment, particularly around fast-expanding Cambridge.

Transport bodies in eastern England are undertaking some of the UK's most active programmes to tackle the challenges, both through building new infrastructure and from trying to manage better what is already there.

Mike Salter, head of transport planning for the East of England Development Agency, points out that 500,000 jobs and 500,000 dwellings are expected to be created in the region over the next 10 to 15 years.

"That does, of course, bring some transport challenges that need to be addressed," he says.

At Felixstowe, the confidence in the future of the port's owner, Hong Kong's Hutchison Ports, is evident in the rapid work under way to convert the southern part of the port into new container-handling space. The development, begun in September 2008, is due to come into service this year.

Although UK container traffic fell 9 per cent last year over 2008, Paul Davey, Hutchison Ports' head of corporate affairs for the UK, says Felixstowe needs to be able to handle giant container ships better than at present.

One such ship, China Shipping's Xin Da Yang Zhou, towers over the quay loading and unloading some of its thousands of containers as Mr Davey speaks. Bigger ships - capable of carrying up to 13,000 20ft equivalent units (TEUs) of containers - are becoming increasingly common, as container lines try to achieve economies of scale.

"A lot of UK trade that came on what are now seen as medium-sized vessels of 7,000 or 8,000 TEUs is now going to come on 12,000 to 13,000 TEU vessels," Mr Davey says. "It's important that the UK can accommodate those vessels."

The pressure on surrounding areas of servicing such ships' needs is clear. Scores of trucks rumble into and out of the port via the A14 trunk road. On the railway, single-carriage passenger trains share the mostly single-track branch line from Ipswich with regular trains of containers heading for the Midlands, north-west England and other parts of the UK.

Work is under way to raise bridges and lower tunnel floors to let trains carrying the latest, biggest containers use a route via Peterborough and Nuneaton to the main London-Glasgow west coast main line.

At present, such trains have to head south towards London on the Great Eastern main line, before running through north London to the west coast route.

The development agency regards the Felixstowe to Nuneaton project as "really, really important", according to Mr Salter. "It frees rail paths on the Great Eastern main line for passenger movements," he says. "Also, it takes lorries off the A14."

The A14's fate is also crucial for the area around Cambridge, according to Brian Smith, executive director of Cambridgeshire Council's environment services. The road handles heavy traffic heading to and from Felixstowe alongside heavy commuter traffic on the Cambridge to Huntingdon stretch.

"There's enormous pressure to deal with that artery because there are significant delays there," Mr Smith says. "From a business perspective, the A14 is absolutely critical to the continued economic prosperity of this region."

A public inquiry this year will consider £1.4bn plans to reroute much of the road between Cambridge and Huntingdon, provide it with three lanes in each direction and, crucially, reroute short-distance traffic to a new, neighbouring road.

However, Cambridgeshire has also adopted less conventional tactics. Cambridge's outskirts include some of the UK's most heavily-used park and ride sites with frequent services into the city centre.

The UK's longest guided busway, due to have opened in February last year, will eventually bring buses faster towards the city from the direction of St Ives along a disused railway line. Completion of the busway has been held up by a contractual dispute.

Most boldly, Cambridgeshire successfully applied for funding under the Department for Transport's now-defunct Transport Innovation Fund (Tif) that could eventually have seen the city adopt charging for road use . That idea has been shelved since the DfT scrapped the Tif programme.

Any future programme is unlikely to prove as bold as the Tif bid, according to Mr Smith. But he does expect the county to continue to seek novel solutions to the challenges posed by eastern England's success.

"Cambridge has, like many other ancient towns, a tight historic core," Mr Smith says. "It has almost forced us to be innovative and creative."

Asset disposals lift Hutchison Whampoa
31 March 2010
Financial Times

Hutchison Whampoa, the retail-to-telecoms conglomerate controlled by Hong Kong tycoon Li Ka-shing, managed to offset falling revenues with a series of one-off asset disposals.

The company said yesterday that full-year revenues declined 14 per cent to HK$300.5bn ($38.5bn) from a year earlier, hit mainly by poor performance at its ports and energy operations. But net profit still rose 12 per cent to HK$14.2bn.

Losses before interest and tax at Hutchison's third-generation mobile telecommunications unit, which for years has been a big drag on earnings, narrowed 67 per cent to HK$5.3bn last year. Excluding the effects of one-time gains, operating losses were pared 32 per cent. The company, which in August delayed a 2009 target date for achieving positive earnings before interest and tax for its 3 Group, promised the unit would turn profitable at an operating level this year.

"Barring significant adverse market or regulatory developments, the 3 Group's results are expected to continue to improve and make a positive contribution to [Hutchison's] ebit results," Mr Li, chairman, said. "I am more impatient [about 3G] than anyone else."

Canning Fok, managing director, said: "The worst time is over [for 3G]," adding that he spent as much as 60 per cent of his time on improving performance at 3 UK and 3 Italia.

Hutchison's ports division, which accounts for about one quarter of earnings, saw a 16 per cent drop in revenues last year due to weak global trade and lower tariffs. Operating profit fell 21 per cent to HK$10.4bn.

"[Last year] was a very tough year for ports," said Mr Li. "A lot of shipping companies made losses or saw their profits falling 80, 90 per cent. Yield dropped and prices were low."

He added that the company was keen to acquire ports this year as the downturn has made prices more reasonable: "In the past when business was good, people didn't want to sell and prices were very high . . . it's easier now."

Hutchison's energy operations, meanwhile, suffered from a 38 per cent decline in oil prices and a 56 per cent drop in gas prices. Revenues fell 43 per cent to HK$435.8bn last year, while earnings before interest and tax dropped 70 per cent. The arm's contributions to group operating profit fell from 24 per cent in 2008 to 11 per cent in 2009.

Hutchison turned to one-off asset disposals to lift net profit, earning HK$12.5bn from the sale of its telecoms businesses in Israel and Indonesia last year.

Additional reporting by Tom Mitchell in Hong Kong

Trend reverses as container traffic returns to bigger ports
5 April 2010
Financial Times

Regional ports appear to be losing ground to bigger rivals as container traffic that moved to smaller ports during the boom shifts back to the main gateways.

Felixstowe and Southampton, the busiest container ports, appear to have withstood last year's slump in container volumes relatively well, according to port traffic statistics from the Department for Transport .

Last year Felixstowe suffered only a 5 per cent decline in imported units - a category that includes cars and unaccompanied truck trailers, alongside containers - while Southampton saw a 9 per cent fall in line with the market average.

"There's some evidence of traffic concentrating at the major ports," said Paul Davey, head of corporate affairs at Hutchison Ports, Felixstowe's owner.

But smaller ports that witnessed big increases in traffic during container shipping's 2001 to 2008 boom recorded aboveaverage falls.

Grimsby and Immingham were down 12 per cent and Hull 13 per cent in 2008-09. Forth Portssaw volumes at Grangemouth 11 per cent lower in 2009 than in 2008 .

The trend has continued this year, according to Patrick Walters, commercial director of Associated British Ports, which owns Southampton and many of the regional ports. Southampton saw growth resume at the end of last year and continue this year, he said.

"It is fair to say that we have not seen the same level of recovery in our regional ports, particularly on the Humber, as far as containers are concerned."

However, the trend has been far from universal, with some small ports continuing to do well. Simon Bird, chief executive of the Bristol Port Company, said his port's container volumes for 2009 had been "remarkably similar" to the year before, although the port had seen a large fall in car traffic.

Bristol's container traffic continued to benefit from its proximity to the "golden triangle" area of the Midlands, where many retailers and distributors tend to base logistics operations.

David Robinson, chief executive of PD Ports, which operates the ports of Hartlepool and Teesport near Middlesbrough, said his company, which hosts a big import centre for supermarket chain Asda, had seen container volumes 19 per cent higher in 2009 - although its overall import units were well down.

"We're not seeing volumes migrating to the deep-sea ports," he said.

The main picture nevertheless appears to be a reversal of a trend that started in 2004 , when growing congestion at Felixstowe and Southampton prompted some customers to stop using the large ports served directly by big, long-distance ships. Instead, customers began to send containers to Britain by taking them off longdistance ships at continental ports such as Rotterdam, sending them onwards on smaller vessels . The shift produced growth rates of 15 per cent or more for some regional ports.

Customers were now seeking to cut costs by re-verting to the bigger ports, Mr Walters said. Because of the shift, ABP had decided to turn a planned container terminal at Hull into a facility to serve the offshore wind turbine industry. "Feedering or transshipment involves a second move, which adds to cost," Mr Walters said.

But Charles Hammond, chief executive of Forth Ports, insisted customers continued to prefer ports such as Grangemouth to moving containers through a south-east England port and then by road and rail. Figures for Felixstowe and Southampton, he said, were being boosted by a shift in trans-shipment towards the large English ports encouraged by the weak pound.

They were increasingly handling movements of containers on to small feeder ships heading for regional ports, rather than Rotterdam or Antwerp.

"I don't think what is happening is at our expense," he said. "The deep-sea ports in the UK are getting more transshipment business at the expense of the continent."

HUTCHISON HAS NO PLAN TO QUIT INDON PORT OPERATOR JICT: EXEC

JAKARTA, April 21 Asia Pulse - Indonesia's state-owned port operator PT Pelindo II denies reports that Hong Kong's Hutchison Whampoa wants to sell its stake in PT Jakarta International Container Terminal (JICT) following recent rioting in Koja, Tanjung Priok, where the terminal is located.

"The rumor is false. There was no talks about Whampoa selling its shares," says RJ Lino, the president of Pelindo II, Hutchison's partner in JICT.

Siswanto Rusdi, the director of the National Maritime Institute, told state-run news agency Antara there were indications that Hutchison was planning to sell its stake.

Lino said he received no complaints from Hutchison, although the company might have been unhappy with the deadly rioting over alleged plan by Pelindo to destroy the tomb of an 18th century Muslim cleric in Koja.

JICT operates on a 5.4 hectares of land and ownership of 300 squares of which is disputed, the newspaper Jakarta Globe said.

New cranes arrive at Felixstowe South
21 June 2010
Lloyd Special Report

The first three ship-to-shore gantry cranes have been delivered to the port of Felixstowe’s new Felixstowe South development. The cranes are the biggest of their type in the world, and are capable of handling future generations of container ships with 24 containers wide on deck.

Built by Zhenhua Port Machinery Company (ZPMC) of Shanghai, the cranes were transported fully erect from China to the port of Felixstowe. Each crane weighs approximately 2,000 tonnes and is capable of lifting two containers simultaneously up to a total of 70 tonnes.To increase stability of such large cranes, the distance between the waterside and landside legs (the rail gauge) has been increased from the 30 m at the port’s Trinity Terminal to 35 m for the new cranes. They will undergo a commissioning process before entering service. This will include final installation of local operational and communications systems, as well as checking the full functionality of all the cranes systems. Commenting on the arrival of the cranes, David Gledhill, chief executive officer of Hutchison Ports (UK), which owns the port of Felixstowe, said: “With the first of the quayside cranes on site, Felixstowe South is quickly becoming a reality. We recently took delivery of the first batch of yard cranes and the main work on the quay wall is complete, with the fenders now being fitted. We are making good progress laying the 19 million concrete blocks that will make up the storage yard area and will have everything in place to handle the first trial vessels later this year.”The deep-water container terminal Felixstowe South comes at a time when an increasing number of ultra-large container ships are coming in to service. Gledhill added: “It was only a few years ago that we saw the first 10,000 TEU ship enter service but within the next few years there will be over 100 of these massive ships on the major trade routes. It is essential for UK shippers and receivers that we have the facilities to accommodate these mega-ships and Felixstowe South gives us that.”

Privatisation benefits African ports
16 July 2010
Financial Times

Grey cranes at Mozambique's Maputo port lift containers on and off the Umgeni, a small container ship.

Much of the port bears the evidence of neglect stemming from the country's civil war, which lasted from 1977 to 1992. The air is thick with dust from the chrome ore being loaded further down the quay. But the unusually busy-looking workers, new cranes and new trucks show how the port has changed since, seven years ago, it became one of the first in Africa to be handed over wholly to private-sector operators.

Maputo is one of three ports in sub-Saharan Africa run, in whole or part, by Dubai's DP World. APM Terminals, part of Denmark's AP Møller-Maersk, operates another six, and Hong Kong's Hutchison Ports operates one.

All the operators are applying their know-how to improve efficiency and to win customers. Some involve entirely new facilities, including DP World's Doraleh port in Djibouti. Other projects, including Maputo, involve overhauling an existing port.

Maputo is gradually winning custom from South African ports run by Transnet, the country's state-owned transport monopoly.

The port, run by a consortium owned 40 per cent by DP World, 40 per cent by South Africa's Grindrod and 20 per cent by Mozambique's state-owned railway company, is gradually increasing its share of the containers and bulk goods moving to and from north-eastern South Africa.

Rui Santana Alfonso, planning and development manager for the Maputo Port Development Company, says efficiency has improved largely because of better management and technology. In its dry bulk operations, Maputo now moves 180 tonnes of chrome ore per labour gang per hour, according to Mr Alfonso. Richards Bay, South Africa's busiest bulk port, manages only 140.

"There's a lot more demand for productivity efficiency," Mr Alfonso says of the post-privatisation period. "We're more customer focused than we used to be."

Maputo's transformation is particularly evident in the port's container terminal, which is run by a company owned 60 per cent by DP World and 40 per cent by the railway company. Ricardo Schlechter, the terminal's general manager, was brought in to apply lessons learnt in a long career in Latin American ports.

As well as the new trucks and cranes, there are new computerised systems to track down boxes more quickly. Mr Schlechter hopes the terminal will handle 150,000 20-foot equivalent units, or TEUs, of containers this year, against 100,000 TEUs in 2009.

Not everyone is convinced privatisation is the key to improvement. Chris Wells, acting chief executive of South Africa's Transnet, argues high investment is more important.

Customs procedures undoubtedly remain cumbersome in many countries, including Mozambique, where they hamper the port company's ability to handle goods moving to other ports within the country. Even efficient ports often struggle to cope with Africa's poor landside infrastructure.

Maputo benefits from an unusually good road to and from the South African border, but has poorly co-ordinated rail services.

"The experience from the rest of Africa has not been that [privatisation] has been a panacea for all ills," Mr Wells says.

Growing trade volumes have also outstripped many ports' ability to cope. Maputo's recent container terminal improvements were introduced to tackle worsening congestion. Ports need to tackle such problems to persuade more shipping lines to call with direct, long-distance services.

The balance of risks and rewards is nevertheless changing. Port executives are far more interested in Africa, and in resolving problems there, it is now one of the few world areas still experiencing rapid traffic growth. This, in turn, is encouraging customers to look at ports they might previously have shunned.

Willem Bestbier, director of operations for Colors, a South African fruit distributor, says he would like to switch some traffic to Maputo to shorten the 1,000km journey some of its fruit takes from north-eastern South Africa to Durban.

"The shipping lines are gearing up to provide a service for us from Maputo to the UK and western Europe," Mr Bestbier says. "There's huge potential going through there."

Port Operator Hutchison Posts Big Gains
6 August 2010
Journal of Commerce Online

Hong Kong-based Hutchison Port Holdings, the world's largest container port operator in volume, said its earnings before interest and taxes rose 35 percent as its container throughput increased 17 percent to 35.3 million 20-foot equivalent units in the first half of 2010.

The port division of Hutchison Whampoa had earnings before interest and taxes of $782 million as revenue increased 14 percent to $2.3 billion. The increased EBIT included a one-time $71 million gain from a required marking of an investment to market value.

Volume for the group's ports and related services increased 15 percent in China and Hong Kong, 21 percent in the rest of Asia, 16 percent in Europe and 21 percent in the Americas.

Profit rose 59 percent from operations in the Americas, 13 percent in China and Hong Kong, 14 percent in the rest of Asia and 4 percent in Europe. Hutchison operates in 51 ports in 25 countries.

Hutchison Whampoa, controlled by billionaire Li Ka-shing, had an overall 12 percent increase in net income to $830 million. Revenue for the group, whose non-port interests include telecommunications, energy and real estate, rose 8 percent to $19.7 billion. Group-wide EBIT increased 34 percent to $2.19 billion.

FELIXSTOWE: Port bosses were able to show how safe a highly-dangerous workplace...
15 September 2010
Evening Star (Ipswich)

FELIXSTOWE: Port bosses were able to show how safe a highly-dangerous workplace can be when Britain's biggest container terminal played host to some of the key people in dealing with safety in the industry. Hutchison Ports (UK) was hosting the 107th meeting of the Ports Skills and Safety Group. The group's 58 members, including representatives from the Health and Safety Executive, gather three times a year to discuss safety issues affecting those working in UK ports. Before their meeting, they were given a tour of the Port of Felixstowe, seeing some of the safety projects in practice at the terminal and also visiting the new expansion project to see the progress. The port is proud of its safety record with practices constantly reviewed and officials work closely with the HSE. Employees are regularly sent on courses. The shipping industry though can be a dangerous environment to work in because of the very nature of its various jobs.

David Wilson, head of Health and Safety at HPUK, and the current chairman of the Port Skills and Safety Group, said it the meeting at Felixstowe had been very positive and had been well attended. “It continues to show the commitment of the industry in improving safety standards with a further 20 per cent reduction in the national accident incident rate for reported accidents for 2009,” he said.

Thamesport celebrates 20th birthday
22 September 2010
Lloyd Special Report

London Thamesport is celebrating the 20th anniversary of its opening, by the Princess Royal, in September 1990. Formerly the site of the Kent Oil Refinery, the port was one of the world’s first automated terminals, with a capacity of 360,000 TEU when it first opened.

Following the acquisition by Hutchison Ports (UK) in 1998, throughput increased to over half a million TEU per year. HPUK has continued to invest in the facility, which is just 35 miles from central London. London Thamesport is one of the UK’s leading container ports and remains the only automated container port in the country. It is one of the few UK ports which can handle the largest ships on the market, with a depth alongside of 15 m. More recently, London Thamesport has spearheaded the development of port-centric logistics. A number of manufacturing brands, backed by their internationally recognised logistics service providers now operate at the port. The potential for further development is reflected in two third-party proposals for major new distribution facilities on sites totalling over 200 hectares, and serviced by the port. London Thamesport is located in the heart of Southeast England, 10 miles from the M2 motorway. It is a member of the Hutchison Port Holdings (HPH) Group. HPH, a subsidiary of the multinational conglomerate Hutchison Whampoa Limited (HWL), is one of the world’s leading port investors, developers and operators with interests in a total of 51 ports, spanning 25 countries throughout Asia, the Middle East, Africa, Europe, the Americas and Australasia. HPH also owns a number of transportation-related service companies.David Gledhill, chief executive officer of HPUK, commented: “It is quite incredible how far London Thamesport has come in such a short time, serving hundreds of ships every year and providing excellent warehousing, transport and logistics services. It is an important UK hub for deepsea imports and has some of the finest deepwater facilities nationwide.”

Hutchison: To Buy Port, Property Assets For HK$5.7 Bln
3 January 2011

HONG KONG (Dow Jones)--Hutchison Whampoa Ltd. (0013.HK) said Monday it plans to buy several port and property assets from China Resources (Holdings) Co. for HK$5.7 billion (US$735 million).

The Hong Kong-listed conglomerate said in a statement the assets include equity stakes in HIT Investments Ltd., Hongkong International Terminals Ltd., Splendid Century Ltd., Eckstein Resources Ltd., Hutchison Ports Yantian Investments Ltd., and Omaha Investments Ltd. Some of the acquisitions involve taking on the loans of the firms, it said.

Hutchison Whampoa said it will raise its stakes in ports in Hong Kong and Yantian through the deal, but didn't give details. It said it expects to complete the deal by Friday.

Hutchison Whampoa accumulates more stakes in container terminals
4 January 2011
China Daily - Hong Kong Edition

Hutchison Whampoa Ltd, the conglomerate controlled by billionaire Li Ka-shing, said Monday it has raised its stakes in some container terminals by acquiring additional interests from partner China Resources (Holdings) Co Ltd for HK$5.7 billion.

The deal includes acquisition of shares in Hongkong International Terminals Ltd (HIT) and interests in properties located in Kwun Tong in east Kowloon, Hutchison said in a statement filed to the stock exchange Monday.

HIT is the flagship operation of Hutchison Port Holdings (HPH) Group, the conglomerate's port operation unit.

HIT operates 12 berths on its own and another two through its joint venture with COSCO Pacific Limited in the Kwai Chung container port area of Hong Kong, one of the busiest container ports in the world.

Before the deal, Hutchison held about 53 percent of HIT. It did not provide further details on the company's holdings in the acquired assets after the deal.

The purchase will be settled in cash and is expected to be completed before January 7, according to the company.

In 2005, Hutchison sold a 20 percent stake in HIT to Singaporean investment holding company PortCapital Ltd, booking a gain of HK$5.5 billion from the sale.

"Since the market is bullish on shipping business in 2011 counting on the US economic rebound, Hutchison has accelerated the pace in the acquisition of port assets," said Alvin Chung, associate director with Prudential Brokerage.

The rebound in global trade has boosted the container-freight fees which helped most shipping companies return to the black in 2010.

Hutchison Port Holdings, the conglomerate's port division, in August said its earnings before interest and taxes (EBIT) rose 35 percent in the first half of 2010 from a year ago as its container throughput increased 17 percent to 35.3 million twenty-foot equivalent units (TEUs).

Hong Kong's total exports rose by 23.8 percent for the first 11 months of 2010 compared with the same period a year earlier while total imports increased by 26.1 percent, according to data provided by the Census and Statistics Department.

According to a report prepared by IHS Global Insight, trade will continue to grow in 2011 albeit at a slower pace compared with 2010. It projected that global containerized trade measured in TEUs will grow at 6.8 percent this year from 9.2 percent growth in 2010.

"Hutchison has been very active in seeking investment opportunities," said Chung. "Particularly at a time when Asian markets expect strong export growth in 2011 as demand from the US is likely to be further driven by US government measures in stimulating the economy, Hutchison will not let this opportunity slip away."

Shares of Hutchison climbed 5.3 percent to close at HK$84.20 in Hong Kong trading Monday, compared with a 1.74 percent gain in the city's benchmark Hang Seng Index. The stock surged almost 50 percent last year.

Hutch eyes US$6b in ports spinoff
The Standard
Wednesday, January 19, 2011

Hutchison Whampoa (0013) - the conglomerate controlled by Li Ka-shing - is spinning off its port operations in Hong Kong and the mainland.

The firm is seeking to list the assets in the Singapore stock exchange as a trust to raise US$6 billion (HK$46.8 billion).

The move is a wake-up call for the Hong Kong bourse operator to boost its competitiveness, analysts said.

"Why a trust structure?" asked Justin Haik, Morgan Stanley Asia head of equity. "Primarily there are tax benefits for issuers." And investors will not have to pay tax on dividends.

"There's no reason why Hong Kong cannot come up with a framework similar to Singapore," Haik added.

Hutchison said securities cannot be listed in the form of trusts in Hong Kong at the moment.

"The company will consider a subsequent additional listing of the units on the Hong Kong stock exchange when there is an appropriate change in the city's regulatory environment," the firm said.

Securities and Futures Commission chairman Eddy Fong Ching said regulators are studying the issue.

"So far, we only have a system to list real estate investment trusts."

Hutchison Port's major assets are its deepwater port operations in Hong Kong and Guangdong, which have been providing a good profit and cash flow.

Fitch Ratings said the sale of the port operations will cut revenue from the profitable arm. Hutchison recorded a HK$1.82 billion profit from its port operations in 2009.

But the reduction will likely be offset partly by the stable dividend stream from the trust, said Moody's, another credit ratings firm.

"The potential cash inflow will significantly reduce Hutchison's reported net debt at the outset," said senior credit officer Elizabeth Allen. She noted that the rating outlook may return to "stable" from "negative" if Hutchison's financial profile improves.

The conglomerate will keep a 25 percent stake in the trust after the listing. It will continue to invest, develop and operate deepwater container ports in 25 countries that do not fall within the trust.

Hutchison Whampoa shares closed 2.4 percent lower at HK$93.50.

Hutchison Whampoa's latest move seen as a boost for business trust market in Singapore

SINGAPORE, Jan. 30 (Xinhua) -- The Singapore Exchange (SGX) has many reasons to cheer a lot when Hutchison Whampoa - the Hong Kong conglomerate controlled by Asian tycoon Li Ka Shing - announced that it would be spinning off its port assets in Hong Kong and Chinese mainland into a business trust to be listed in Singapore.

This is not only that it has emerged as the winner in the latest round of rivalry with its Hong Kong counterpart. After all, the new business trust encompassed with lucrative port businesses in Hong Kong and Chinese mainland, if successfully listed here, will also elevate the trading of the business trusts in the local bourse to the new level.

The new business trust is expected to have the largest market capitalization among the peers listed in the Singapore Exchange, and Singapore Exchange is one of the very few exchanges in Asia- Pacific region that offer a comprehensive platform for business trust listing.

Unlike real estates investment trusts (reits) which already has established presence in major regional bourses such as Hong Kong Exchange (HKex), business trust is a relatively new listing vehicle that has yet to take off in a big way in the region.

Some similarities and differences between a reit and business trust are often also seen as merits for companies to list their assets as business trust, provided that they meet the local regulatory requirements. For instance, a business trust, like a reit, can distribute dividends directly out of the income it get from its business.

Capital gain is possible for both reit and business trust if the value of their assets appreciates. Yet unlike a reit with its level of borrowings or gearing is limited to 35 percent of its asset for non-rated ones and 60 percent for rated ones, a business trust does not face any legal or regulatory restrictions on its level of borrowing.

The absence of restriction on borrowing enables the business trusts to expand their business more through debts. This certainly bode well for them under the low interest-rate environment, when their cost of borrowing is low due to the abundance of liquidity in the market, with the banks much more willing to lend deposits out to businesses which are seeking growth.

However, like all other investments, business trust can be impacted by economic downturns, and its price can fluctuate. When the financial crisis swept across the globe in the aftermath of Lehman Brothers' collapse, shipping trusts listed as business trusts in Singapore bourse were experiencing cash flow problems as many clients chose to default payments.

To make matter worse, some of them which had sought aggressive expansion now found themselves saddled with piles of loan facilities they could no longer pay on due date. As a result, their prices plummeted and have yet to recover to pre-crisis level to date.

Indeed, the financial woes are still felt by some business trusts as recent as late year despite the strong recovery of Asian economies in the last year and a half. On December last year, private investors chose to delist one of the business trusts engaged in water treatment after years of its depressed unit prices making new fund raising more difficult than expected amid the last global recession.

Hence, it comes as no surprise that Hutchison's latest move to list a business trust here is highly appreciated by the Exchange officials and market watchers. For now, a glimpse of hope has finally emerged out of the horizon for the trading of business trust in Singapore.

Hutchison happy as intra-Asian trade booms
11 February 2011
Business Times Singapore

(SINGAPORE) Hutchison Port Holdings (HPH), the behemoth behind what might be Singapore's largest ever initial public offering (IPO), is set to see even greater cargo action in the region.

Group managing director John Meredith singled out the intra-Asian trade route as the fastest-growing area for the sector during his visit to Singapore yesterday for a board meeting.

According to figures cited by Dr Meredith, intra- Asian trade grew more than 40 per cent last year. 'It's growing very, very vigorously,' he told the media.

In January, Hong Kong conglomerate Hutchison Whampoa announced that it had applied to list its port assets in Hong Kong and Southern China as a port trust - Hutchison Port Holdings Trust - in Singapore, and sources close to the deal had pegged the amount to be raised at US$6 billion.

While Mr Meredith was unable to say anything IPO-related yesterday because of exchange regulations, the future for the trust assets is a bullish one, especially with Hong Kong positioned as the hub for the growing intra-Asian trade.

'Hong Kong is transforming itself over time, quite possibly to be an intra-Asian location,' said Dr Meredith. He foresees Hong Kong being a popular holding area for cargo coming in from other parts of Asia headed for China.

'The problem with going directly into some of these locations (in China) is that the flexibility for customs is much higher in Hong Kong than individual ports in China,' he said.

Going through Hong Kong also gives importers an additional advantage: duty is not payable immediately, which eases the cashflow situation.

HPH's Hong Kong International Terminals (HIT) and Cosco-HIT Terminals in Hong Kong are part of the portfolio of assets slated to be listed in the trust.

According to Dr Meredith, HPH's Hong Kong terminals will be able to adequately handle the increase in intra-Asian trade by increasing capacity with better systems and automation.

If push comes to shove, the terminals will cut back on the transshipment business to make room for the more lucrative intra-Asian cargo.

'If necessary, we would prefer intra-Asia traffic rather than doing even transhipment business,' said Dr Meredith.

Right now, long-haul cargo brings in the best revenue, followed by intra- Asian containers, transshipment goods and, finally, empty containers.

Also part of the trust are the three phases of the Yantian International Container Terminals and its expansion project. Post-expansion, there will be 16 berths in total.

HPH's Hong Kong and Yantian terminals are some of the crown jewels in its clutch of 51 ports in 25 countries. Yantian, in particularly, has 'grown like crazy' and is now 'the world's largest privately operated port facility', according to Dr Meredith.

'We're seeing a double- digit growth in imports - a phenomenon that is affecting the whole of China,' he said.

With 65.3 million twenty-foot equivalent units (TEUs) of combined throughput handled in 2009 and a turnover of US$4.3 billion, the world's largest container-port operator's international growth is set to continue.

'We are negotiating with four different countries, and I can't tip off PSA as to where they're going to be,' Dr Meredith quipped.

Hutchison Port May See Tepid Singapore Debut Due To Impact Of Japan Quake
18 March 2011

SINGAPORE (Dow Jones) -- Hutchison Port Holdings Trust's (NS8U.SG) initial public offering -- Southeast Asia's largest ever and the world's biggest so far this year -- may see a lackluster debut on the Singapore exchange Friday due to the impact of the destructive earthquake and tsunami that hit Japan.

Not only is the debut likely to be weighed down by volatility across Asian bourses stemming from worries over the fallout from the crisis in Japan, but analysts also fear that a possible drop in Japanese exports will affect Hutchison Port's bottomline.

The unit of Hong Kong conglomerate Hutchison Whampoa Ltd. (0013.HK)--which owns deep-water ports in Hong Kong and China--could raise US$6 billion for its IPO at a price of US$1.01 a unit, which is already well below the top end of its initial indicative range of US$0.91 to US$1.08 a unit.

Hutchison Port's offer was 2.9 times subscribed, with 3.8 billion units sold to institutional investors and the public, according to an exchange statement Thursday.

If an overallotment option isn't exercised, the IPO would raise about US$5.5 billion, which would still make it the largest in the region, and in the world so far this year.

Hutchison Port's units will start trading at 0600 GMT Friday, but analysts said negative sentiment wrought by the earthquake and tsunami, as well as the ongoing nuclear crisis, in Japan may dull the debut.

"The Japanese crisis will have an impact on (Hutchison Port's) share price, we believe," CIMB said in a note. "Japan is the major key components exporter in several fields, including electronics, optic media and machinery to manufacturing countries in the region.

"Near-term supply chain disruptions could have a negative impact on trade volumes. This could hurt (Hutchison Port's) near-term earnings," the house said.

While the offer by Li Ka-Shing's ports operator is well-supported by institutional investors, market participants remain cautious amid current volatility in financial markets, with other Singapore IPOs struggling to get off the ground in recent weeks.

Earlier this month, Perennial China Retail Trust, a unit of Singapore's Perennial Real Estate, deferred its proposed S$1.1 billion Singapore IPO due to market volatility.

Also, U.S. private equity group Kohlberg Kravis Roberts & Co. last week pulled its proposed S$1 billion Singapore spinoff of precision engineering group MMI Holdings due to weak market conditions, according to a person familiar with the situation.

Singapore's benchmark Straits Times Index tumbled to a six-month low this week as Japan's nuclear crisis and heightening unrest in the Middle East battered investor sentiment.

Hutchison Whampoa had said in a statement it expects a gain of HK$44 billion from the listing of Hutchison Port for 2011, and its net debt to net total capital ratio to fall to around 20% this year.

DBS Bank Ltd., Deutsche Bank AG and Goldman Sachs (Singapore) Pte. are the joint bookrunners and joint issue managers for Hutchison Port's global offering.

Poor debut for Li Ka-shing's port IPO bodes ill for new listings

SINGAPORE, March 18 (Reuters) - Hong Kong billionaire Li Ka-shing's Hutchison Port Holdings Trust's units fell as much as 6.9 percent on their Singapore debut on Friday, underscoring how the tide has turned for new listings, with several deals already being delayed or scrapped.

The slump in Hutchison Port's shares comes as investors, reeling from the effects of Japan's earthquake and nuclear crisis, fled stock markets in Asia and Europe, prompting companies from Hong Kong to Singapore and Denmark to delay IPOs or price them lower than initially expected.

Denmark's ISS, which provides cleaning and cooking services, pulled its planned $2.8 billion initial public offering on Thursday, joining a host of recent high-profile withdrawals, including Perennial China Retail Trust's S$1.1 billion Singapore IPO.

The market turmoil also casts a shadow on the listing of commodities giant Glencore International Ltd's

float, which some had expected would happen by mid-May.

"With markets where they are, it's a matter of picking the windows. It is going to be very volatile, until the nuclear situation is resolved," said a Hong Kong-based investment banker, who earlier this week priced a separate Asian IPO.

The Straits Times Index has fallen about 4.5 percent since a massive earthquake struck Japan a week ago, while Asian shares outside Japan lost 3 percent.

Hutchison Port closed at 95 cents, below its IPO price of $1.01, in total volume of 616.8 million units. The units had fallen as low as $0.94.

Traders and analysts had expected the fall, given the IPO was priced before Japan was struck by a massive earthquake last week, unleashing a destructive tsunami and damaging a large nuclear power generating complex.

"I wouldn't blow this out of proportion, bearing in mind that the IPO comes on stream at a time of extraordinary and exceptional market volatility," said Stephen Davies, CEO of Javelin Wealth Management, a financial advisory firm.

"Once markets begin to calm down and become a bit more reflective you'll see people pricing existing shares and also new issues more sensibly and with good reason," he added.

Hutchison Port's chairman Canning Fok remained optimistic about the company's prospects despite the weak debut.

"I think considering the situation, this is excellent...We got excellent support during the roadshow, so I am very positive about the whole thing," he said.

SOUTHEAST ASIA'S BIGGEST IPO

Hutchison Port, a unit of Hutchison Whampoa raised $5.5 billion, making it the largest initial public offering in Southeast Asia and the biggest in Asia so far this year.

The trust, which owns and operates ports in Shenzhen and Hong Kong, is hoping to tap into a recovery in global trade and provide investors exposure to China's booming infrastructure business.

"Anything below its offer price is a buying opportunity. It's a good defensive stock to own, which gives exposure to growing Asian trade, and the yield is quite attractive," said Kevin Scully, managing director at NRA Capital.

The IPO, which takes the form of a business trust, had attracted cornerstone investors including Singapore state investment firm Temasek , U.S. hedge fund manager Paulson & Co and fund company Capital Research and Management.

Based on the latest price, Hutchison Port now offers investors a yield of around 6.2 percent, compared with 5.8 percent based on the offer price of $1.01.

The size of the Hutchison Port offering exceeds Petronas Chemicals' $4.1 billion fundraising last year, which was the biggest ever IPO in Southeast Asia at that time.

DBS , Deutsche Bank and Goldman Sachs are joint bookrunners and issue managers for the offering. JPMorgan , UBS , Barclays , Morgan Stanley are among co-lead managers.

Melbourne is next port of call for Hong Kong heavyweight
23 May 2011
Australian Financial Review

Hong Kong conglomerate Hutchison Whampoa has made clear its intention to establish a presence in ports in Australia in a bid to challenge the supremacy of DP World and Asciano. Canning Fok, managing director of Hutchison Whampoa, said the company was currently in negotiations with the Victorian government and Melbourne port authorities as it goes about adding to licences recently obtained in Brisbane and Sydney.

Wharf build deal sealed
24 June 2011
The Gold Coast Bulletin

THE contract has been awarded for the Port of Brisbane's ninth dedicated container wharf, Wharf 12.

Brisbane-based construction company, Smithbridge Australia, will build the wharf, which will be operated by Hutchison Port Holdings (HPH) on completion.

HPH will run Wharf 11 - currently under construction - and the future Wharf 12, becoming the Port of Brisbane's third container stevedore.

The Port of Brisbane Pty Ltd (PBPL) will invest $26.9 million in construction of the 305m wharf, which is due for completion by 2014.

The completion of Wharves 11 and 12 will increase the port's container handling facility by 25 per cent.

Smithbridge were awarded the contract as an extension of their contract to build Wharf 11.

At the Port of Brisbane they have worked on the Wharf 8 and General Purpose Wharf projects, and are also working on the Captain Bishop Bridge Project.

Construction of Wharf 11 is progressing on schedule, with almost half of the concrete deck pours complete. Completion of the facility is well on track for 2012.

Hutchison docks 632pc profit rise on port spin off
The Standard
Friday, August 05, 2011

Li Ka-shing controlled Hutchison Whampoa (0013) saw first-half net profit jump more than six-fold to a staggering HK$46.3 billion, mainly on the back of port asset spin-offs.

Li's flagship property firm Cheung Kong (Holdings) (0001) booked a profit hike of 169 percent on strong inputs by Hutchison during the same period.

Hutchison's net profit surge of 632 percent for the six months ended June 30, from HK$6.32 billion a year ago, brought earnings per share of HK$10.86.

Core profit excluding one-time gains, from the sale of Hutchison Port Holdings, Singapore, and charges surged 44 percent to HK$9.12 billion, beating forecasts, while revenue grew 26 percent to HK$187.36 billion. An interim dividend of 55 HK cents was declared.

Earnings before interest and taxation for mobile phone division 3 Group swung to a gain of HK$767 million from a loss of HK$998 million a year ago.

Despite the strong turnaround, Li declined to comment if Hutchison may spin off 3 Group's Italian arm, saying only: "We are approached for mergers and acquisitions every day."

Li said the firm is not seeking a local secondary listing for the Canada-listed Husky Energy due to strong cash flow.

Hutchison will invest more in the port business, with 35 berths of about HK$1 billion each in the pipeline, managing director Canning Fok Kin-ning said.

Meanwhile, Cheung Kong's 169 percent profit jump to HK$33.26 billion - or HK$14.36 per share - was thanks to robust sales and a one-off gain from spinning off properties in Beijing included in the Hui Xian REIT (87001).

The real estate flagship had property sales of HK$20.43 billion in the first half, and it will maintain its investment strategy by actively buying land.

"Over the last few decades, we invested more when the market slowed down. We think we are on the right track with our strategy in today's markets too," said Li, adding that the opportunities are unlimited.

The 83-year-old "superman" tycoon, denied there is any need to restructure his listed firms ahead of the more stringent accounting standard to come into effect from 2013.

The standard will require Cheung Kong to include debts of Hutchison and other related entities on its balance sheet, which will likely boost debt level.

"Both Cheung Kong and Hutchison have a low gearing ratio," a confident Li said. "I don't see any chance for me to sell shares in Cheung Kong and Hutchison in the next 10 years."

An interim dividend of 53 HK cents was declared. Hutchison fell 0.9 percent to HK$90.35 while Cheung Kong dipped 0.1 percent to HK$119.60 yesterday. The results were announced after markets closed.

HUTCHISON PORT HOLDINGS TO OPERATE ENFIELD INTERMODAL LOGISTICS CENTRE
Tuesday, August 02, 2011
Press Release

http://www.hph.com/files/pressimg/1312269320_Enfield_ILC_lr.jpg
Aerial photo of Enfield Intermodal Logistics Centre site

(2 August 2011 – Sydney, Australia and Hong Kong) The NSW Government announced today that Hutchison Port Holdings (HPH) has been appointed operator of the Enfield Intermodal Logistics Centre (ILC), which is located 18 kilometres from Port Botany.

Sydney Ports Corporation Chairman, Bryan Smith said that the appointment of HPH, which is also the operator of the new third container terminal at Port Botany, was a major milestone in the intermodal project.

"In terms of logistics and efficiency, it is only natural for a port terminal operator to also operate a key inland facility of this kind—and HPH has the international experience and expertise to do so,” Mr Smith said.

He said that the ILC would be a key element in a network of facilities across Sydney that will provide a more efficient means to transfer containers by train to and from Port Botany, and to allow the efficient repositioning by rail of empty containers for export from regional and rural NSW.

Raymond Law, Managing Director, Australasia and North Asia of HPH, said, "We are proud to be appointed operator of this new Inland Logistics Centre. HPH has extensive experience operating intermodal centres and services across Asia and Europe, including inland container depots and dedicated rail lines. We are confident that the ILC will play an important role in facilitating the expanding operations of Port Botany.”

Speaking of the role that rail will play in the new ILC, Mr Smith said, “The NSW Government is focused on increasing the rail modal share to and from Port Botany. A network of intermodal centres of which Enfield is a major component, is crucial to achieving this goal. This new facility is expected to achieve up to 300,000 Twenty Foot Equivalent Units (TEU) of port related throughput by rail once fully operational.”

Mr Law added, “HPH supports the government’s plan to move more containers via rail, which is set to become an increasingly important mode of cargo transportation in Sydney.”

There are other benefits of using rail as well. Mr Smith pointed out, “Sydney Ports Corporation estimates that the Enfield ILC will reduce truck movements to and from Port Botany by up to 300 movements per day, resulting in an easing of road congestion and a reduction in carbon emissions. By co-locating pack/unpack warehouses on the site will also internalise over 30,000 truck movements per annum. The Enfield ILC will cut carbon dioxide emissions by 1,000 tonnes per annum and reduce the number of kilometres travelled by truck by 6,500,000.

The ILC would provide open access facilities close to the catchment of metropolitan import and export businesses and provide much needed empty container storage capacity for Sydney.”

"According to the 2005 Environmental Assessment a total of 370 direct and 470 indirect jobs will result during construction and 500 direct and 350 indirect jobs during operation," he said.

Hutchison Ports to Develop, Operate UAE Terminal
Nov 2, 2011 12:46PM GMT
The Journal of Commerce Online

Hong Kong’s Hutchison Port Holdings won a 10-year concession to develop and operate a container terminal at United Arab Emirates’ Ajman port.

The port, in the smallest of the seven emirates, lies around 16 miles from Dubai and six miles from Sharjah, where the bulk of the of the UAE’s manufacturing and trading companies are based. This makes it “a strategic port to capture cargo coming from and destined for South East Asia, South America and Australia,” HPH said.

The main container and general cargo berths in Ajman port have a total quay length of 4,100 feet and a yard area of 32 acres.

Ajman is the 52nd port in HPH’s global terminal portfolio spanning 26 countries. Its other Middle East terminals are in Oman and Damman, Saudi Arabia.

HPH Signs Agreement to Develop and Operate Ajman Port in UAE
Thursday, October 27, 2011
Press Release

Hutchison Port Holdings (HPH) has signed an agreement with Ajman Port Authority that paves the way for the development and operation of Ajman Port in the United Arab Emirates (UAE).

A company will soon be established to operate the container terminal in Ajman Port – the 52nd port in the HPH network of ports – for a concession period of 10 years.

Commenting on the latest addition to the HPH network of ports, John Meredith, Group Managing Director of HPH, said, “The Middle East is an important market for HPH. We are pleased to be part of the Government of Ajman’s ambitious plan to put the Ajman Emirate in an advanced economic position in the Arabian Gulf Area and make it a focal investment centre for local and foreign capitals and investors. It is our plan to modernise the port and improve its competitiveness to support the development of the Ajman Emirate.”

Ajman Port lies just only 25 kilometres from Dubai and 10 kilometres from Sharjah, where most of the UAE’s manufacturing and trading companies are located, making it a strategic port to capture cargo coming from and destined for South East Asia, South America and Australia. The main container and general cargo berths of the terminal have a total quay length of 1,250 metres and a yard area of 12.9 hectares.