Hutchison Port Holdings Management Pte. Limited, as trustee-manager of Hutchison Port Holdings Trust (“HPH Trust”), entered into strategic partnerships with COSCO Pacific Limited (“COSCO Pacific”) and China Shipping Terminal Development (Hong Kong) Company Limited (managed and operated by China Shipping Terminal Development Company Limited (“CSTD”)) through their investments of 40% and 20%, respectively, of effective equity and loan interests in its wholly-owned subsidiary, Asia Container Terminals Holdings Limited (“ACT Holdings”) and its group companies, for an aggregate consideration of HK$2.472 billion (equivalent to approximately S$403.4 million).
ACT Holdings is the holding company of Asia Container Terminals Limited (“ACT”), the company that owns and operates Container Terminal 8 West, located at Kwai Chung, Hong Kong, adjacent to HPH Trust’s existing container terminals (Hongkong International Terminals Limited (“HIT”) and COSCO-HIT Terminals (HK) Limited (“COSCO-HIT”).
WANG Xingru, Vice Chairman and Managing Director of COSCO Pacific, expressed his delight at joining hands together with HPH Trust and CSTD to develop ACT’s Terminal 8 West in Hong Kong. Mr. Wang said, “Further to our existing successful joint venture with HPH Trust at COSCO-HIT’s Terminal 8 East in Hong Kong, I believe that Terminal 8 East and West will form a competitive platform to provide comprehensive and efficient terminal services to our customers. Our investment in ACT will enhance our terminal profitability and further strengthen our presence in Hong Kong which is one of the major gateways to South China.”
FANG Meng, Managing Director of CSTD, said, “We are pleased to team up with HPH Trust and COSCO Pacific in the ACT investment. This is CSTD’s first container terminal investment in Hong Kong and it extends our geographic presence along China’s coastal ports. The single contiguous 1,380-metre berth at Container Terminal 8 will enable us to establish Hong Kong port as a key container shipping hub for the deployment of ultra large containerships, including the 19,000-TEU vessels which are scheduled for delivery in November.”
HPH Trust Chief Executive Officer Gerry YIM noted this is a win-win situation, “This collaboration with COSCO Pacific and CSTD is a significant milestone achievement for HPH Trust that bodes well for the future of ACT, which handled over one million TEU in 2013. This will enhance the city’s competitiveness and bolster all aspects of port operations including flexibility, efficiencies, synergies, and profitability.”