Hutchison slams Tuen Mun rival
The consortium led by Hutchison International Port Holdings (HIP) tendering for the Tuen Mun river terminal project has criticised its rival bidder, a New World Infrastructure-led grouping, accusing it of treating the project as a property investment and lacking industry expertise.
The comments came a day after New World revealed that Odelon, its five-member consortium, bid $2.38 billion for the land premium and would make a total investment of $6.5 billion.
The contract for the terminal, the first of its kind in the territory, is expected to be awarded by the Lands Department at the end of this month.
John Meredith, the managing director of HIP, which is controlled by Li Ka-shing's Hutchison Whampoa, said: 'The whole idea of the (Tuen Mun) project is to facilitate river trade we are already involved in.' He said the HIP-led consortium, known as the River Trade Terminal Co (RTTC), had submitted a lower bid than its rival but refused to reveal the amount.
HIP and Sun Hung Kai Properties own 37 per cent each of RTTC while Jardine Matheson holds 15 per cent and mainland-controlled shipping group Cosco Pacific, 11 per cent. Mr Meredith said all parties in RTTC had interests in river trade.
Sun Hung Kai Properties executive director Michael Wong said the Government had made it clear that price was only one of the criteria.
Mr Wong said: 'Our bidding price is less [than the rival bid] because we also put in millions of dollars in the design of a marine shuttle lighter system and a computerised system.' The marine shuttle system can reduce the burden on land traffic, he said.
Mr Meredith said Odelon would have to charge an expensive fee to barges for using the Tuen Mun facility, before it was able to make a return on its high land premium.
Odelon comprises New World Infrastructure, Sea-Land Orient Terminals, SHK Hong Kong Industries and Guangzhou Investment Co.
Sea-Land chairman Ed Aldridge said that for Odelon to win the bid would be to introduce a new competitive factor in the industry.
Mr Wong said RTTC's proposal solved the problem of congested waterways by consolidating the container loads of smaller barges.
River battle Emphasis on property claimed $2.38 billion for land premium in total bid of $6.5 billion Hutchison claims it has track record for project Bid lower but no amount revealed
