Hutchison Whampoa - Hong Kong's International Port Operator

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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."

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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.

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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.

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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."

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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.

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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.

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Associated Press Writer Ramola Talwar Badam contributed from Mumbai.

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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.

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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.

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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.

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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.

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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.

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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)

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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.

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Yvonne Lee contributed to this article.

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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.

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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.

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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)

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


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


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.

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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.

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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.

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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.