MTL
Now that the Shanghai authorities have given the green light for the port project, the jockeying for position by an A-list of some of the world's biggest port operators is just beginning.
Among the contenders for a share in the high-stakes Yangshan port project is Hong Kong-based Modern Terminals which has expressed an interest in building and operating a portion of the first stage of the port, most likely in an alliance with a mainland partner.
Details of the MTL proposal for the deepwater terminal are sketchy at this point, with company officials reluctant to talk about their bid, citing commercial considerations. They also say it is still early days to speak about the nuts and bolts of any tender they plan to submit, explaining that senior management is still exploring a wide range of options and commercial relationships. Although tight-lipped about the shape of things to come, analysts believe MTL's participation will likely be limited to container handling operations, the company's key strength and area of longest operational experience.
MTL director Erik Bogh Christ-ensen said discussions were still at the conceptual stage, but added the company planned to play up its long operational record and market position as a leading port operator in Asia.
'Modern Terminals has a solid 30 years of experience in building and operating world-class container terminals in Hong Kong, which has been the world's number one port in terms of throughput for a number of years,' Mr Christensen said. 'We are well equipped with the technical know-how, terminal management expertise and service excellence culture.'
The first phase of the project, estimated to cost US$12 billion, is expected to be completed by 2010. Infrastructure works include the construction of a 30-km bridge connecting Shengsi with the yet-to-be-built port town of Luchaogang. Up to 50 berths are expected to be operational by the time the second stage of the project is completed in 2020. To get things moving, an initial US$1.45 billion is expected to be injected into the project this year.
The exceptional growth of container traffic in Shanghai helps explain why some of Hong Kong's biggest players are raising their eyebrows at the opportunities there.
'With China's imminent entry into the World Trade Organisation, more trade and investment in the mainland market is expected,' Mr Christensen said. 'Shanghai and Hong Kong will both benefit, along with other mainland cities.
'The future for Hong Kong remains positive because of the expected growth in Pearl River Delta cargoes. Obviously, Modern Ter-minals is interested in opportunities to expand its business in other mainland ports.'
