Wharf Holdings-controlled Modern Terminals (MTL) will lay off some of its workers this year to stay competitive, the first time it has had to do so in its 25-year history.
Outgoing managing director Mark Leese said the company, under new managing director Erik Christensen, would announce details of the lay-offs this month.
'We are cutting costs and reducing staff to remain competitive,' he said, adding that MTL, which has a three million teu (20-foot equivalent unit) capacity, currently had a one million teu capacity unused.
The terminal operator's results were affected by Hyundai's move from its berths last year to Hutchison Whampoa's Hong Kong International Terminals. Mr Leese said a reshuffle of trading alliances had caused the move.
He said there was a need to redress this imbalance and MTL was already working on the problem. For a start, vessels of newly formed P&O Nedlloyd line would begin berthing at MTL from February, adding a throughput of between 400,000 and 450,000 teus annually.
Mr Leese leaves MTL at the end of this month to take up a part-time consultancy job with Marine Terminals Corp, a US stevedoring company based in San Francisco. He has been at the helm of MTL for 15 years.
He said his successor, Mr Christensen, was no stranger to Hong Kong, the mainland and the shipping industry, having been with East Asiatic Co for 26 years.
