SkyscraperCity banner
1 - 20 of 180 Posts

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #1 ·
Overview



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).
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #2 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #3 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #4 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #5 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #6 ·
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)
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #7 ·
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)
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #8 ·
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)
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #9 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #10 ·
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”.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #11 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #12 ·
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
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #13 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #14 ·
European Container Terminals





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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #15 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #16 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #17 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #18 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #19 ·
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.
 

·
Moderator
Joined
·
121,746 Posts
Discussion Starter · #20 ·
18/Oct/05
Dalian Ports Corporation Limited and the HPH Group to Jointly Develop Dalian Ore Terminals
HPH Press Release


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
 
1 - 20 of 180 Posts
Top