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Joon San

Wong Joon San

Modern Terminals Ltd (MTL), controlled by Wharf (Holdings), is to sack about 10 managers and 380 other staff as part of its drive to stay competitive.

 Sources said MTL's human resources department had approached various staff with redundancy offers, with some offered jobs in the company's new joint venture in Qingdao port.

 MTL spokesman Joel Cheung declined to comment.

 This is the first time in MTL's 25-year history that it has had to lay off staff.

 Outgoing managing director Mark Leese last month said: 'We are cutting costs and reducing staff to remain competitive.'  The terminal has the capacity to handle three million teu (20-foot equivalent units) of containerised cargo, but currently about one million teu of this is not being used.

 MTL profits were affected by Hyundai's decision last year to move from its berths to Hutchison Whampoa's Hong Kong International Terminals.

 Mr Leese said a reshuffle of trading alliances had caused the move.

 On a positive note, MTL said it would receive vessels of P&O Nedlloyd Line from February next year, which would add a throughput of between 400,000 and 450,000 teu annually.

 The sources said MTL and Danish carrier Maersk Line would jointly take a 49 per cent stake in the second phase development of Qingdao port, in Shandong province.

 They said the two companies had recently signed a letter of intent with the Qingdao port authorities to build and operate three container berths.

 'Financial details of the deal are being worked out,' they said.

 MTL was expected to take the biggest stake in the joint venture.

 Maersk, one of MTL's customers, was expected to take a smaller share of the operations.

 Construction of the second phase container berths, which was started by the Qingdao port authorities - which will retain the controlling 51 per cent stake in the terminal - is already at an advanced stage.

 'The one million teu facility will be ready early next year,' the sources said.

 The first phase of the port comprises a bulk cargo facility, which also handles containers.

  Qingdao port was reported to have handled 410,000 teu between January and May, overtaking Tianjin port, which handled about 360,000 teu over the same period.

 Mainland officials attributed this to the Qingdao government's aggressive move to assist the port to increase container throughput in every way possible, unlike Tianjin which they said left shipping lines to their own devices.

 They said progress at Tianjin would be hindered if the authorities did not adopt positive measures to recover its prosperity.



Modern Terminals to lay off 390 workers in bid to hold competitive edge