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| Cosco Pacific to invest HK$1.5b in 4 China ports |
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(SINGAPORE) In a boost to its mainland China terminal operations, Cosco Pacific plans to invest a further HK$1.5 billion (S$336.6 million) in four facilities by the end of 2003, according to managing director Shi Win. Speaking to reporters at the container lessor and terminal operator's interim results announcement, Mr Shi said the investment would be made in Dalian, Yantian and phase one of Shanghai's Waigaoqiao port. It also plans to form a consortium with Maersk Sealand, the Qingdao Port Authority and P&O Ports to develop phases two and three of the Qianwan container port. The results statement showed that Cosco Pacific posted a 26.5 per cent H1 increase in port-derived profits year-on-year to US$25.72 million, with throughput at terminals where it holds stakes up 20 per cent to 4.7 million TEUs (twenty-foot equivalent units). However, the group suffered a 0.9 per cent fall in its container leasing profits to US$41.6 million, although it increased its containers by 12.8 per cent, boosting box numbers to 669,265 TEUs. Overall, its first half profit was down 13.1 per cent to US$73 million - blamed on a one-off profit of US$14 million in early 2001 from selling investment securities. Cosco Pacific is not the only group eyeing the in-demand Waigaoqiao terminal. Its six existing berths are reportedly already operating at full capacity, but 12 will be ready by year's end, CI Online quoted Shanghai Port Authority director Lu Haihu saying. Anxious to tap into Shanghai's trade boom, shipping lines and alliances have been busy competing and negotiating for added calls as berths become available at the congested facility. Owned by the port authority, Waigaoqiao has already attracted big-name investors, with Hutchison Whampoa agreeing to take a 30 per cent stake, the Cosco group 20 per cent, and a reported 10 per cent commitment from Shanghai Industrial Holdings. While Shanghai has been designated the mainland's key international trading port - tipped to hit a container handling volumes over 10 million TEUs by 2005 - Waigaoqiao has been declared a free trade zone and is being turned into a logistics hub with an estimated US$1.2 billion in transport and distribution-related development. China news reports claim the facility is attracting big interest because of its relatively deep draught and lower terminal tariffs. |
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