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Chiwan Container Terminals (CCT) yesterday reported triple-digit growth in container volumes last month as Shenzhen's second-biggest port operator continues to syphon off south China market share.

The majority mainland-owned terminal operating company saw the volume of cargo moving across its docks jump 100.1 per cent to almost 110,000 teu (20 ft equivalent units) last month.

Comparative year-to-date volume is up 97.3 per cent, to 715,553 teu, largely through a substantial increase in direct calls from international liner services.

The unprecedented boom is seeing CCT management, which began last year with what it considered to be a bullish throughput target of 800,000 teu, re-visit growth projections almost monthly as the industry enters the peak holiday season.

'It appears now that we will have handled more than 1.1 million teu by the end of the year, almost double 2001's figure,' a CCT spokesman said.

'Not only have we attracted more international liner services, but our traditional users are also seeing organic growth. It is estimated that Shenzhen port will reach 6.8 million teu this year.'

Shenzhen, comprised of CCT, Shekou Container Terminals (SCT) and Hutchison's Yantian International Container Terminals (Yict), moved 5.08 million teu last year.

If it reaches the 6.8 million teu mark - and all indications are it will - the port will have achieved comparative 34 per cent growth and moved firmly into sixth place in the world throughput table.

It ranked outside the top 20 at the end of 1999 and 11th two years ago.

Mainland carrier Sinotrans and South Korea's Hanjin Shipping two weeks ago doubled the calls at CCT of one of their Far East-Europe services by adding the eastbound leg, a move which will only be fully reflected in throughput numbers next month.

CCT is also reaping the rewards of an aggressive campaign to divert river cargo bound for Hong Kong, in particular the River Trade Terminal (RTT) in Tuen Mun.

RTT management acknowledges CCT and its nearby competitor, SCT, pose a threat to the Tuen Mun facility's profitability.

The two operators in March started a feeder network of barges serving the cities on the western side of the Pearl River delta, which is only now beginning to pay dividends.

SCT is also returning to health following a rough start to the year after China Ocean Shipping transferred services to Yantian, via CCT.

SCT moved 84,000 teu across its docks last month, up a comparative 24 per cent. Year-to-date volumes reached 504,453, still marginally down on last year but catching up fast.

'By the end of September we will have recovered what we lost and the last three months will be net growth,' chief executive Cheyenne Yu said.

CCT and SCT initially targeted Huangpu, Shunde, Jiangmen and Zhongshan with the feeder network, which has thus far generated about 10,000 teu for CCT.

The services would take a while to gather momentum, the CCT spokesman said.

'Our target is to reach about 400,000 teu a year from the network, or about 10 per cent of what moves by sea from those areas,' he said.

They will include Nanhai and Foshan before the end of the year and CCT feels the service has the potential to tap into boxes that have traditionally moved by road.

Both facilities are benefiting from growing congestion problems at Yict, which is projected to handle 3.8 million teu this year, after last year's 2.7 million teu.

Rather than lose the business, Yict this month started barging the overflow of cargo to Hutchison facilities in Hong Kong at its own expense to relieve some of the pressure, according to the facility's customers. Hutchison sources in Hong Kong would not comment on the development.

Both terminals report an increase in inquiries from lines looking to escape the Yict congestion.

CCT's listed throughput capacity is one million teu per year, but the spokesman said that was a conservative estimate. The company will take delivery of two more quayside gantry cranes early next year, which he said should easily bump capacity to 1.5 million across its three berths. It will add a fourth berth by the end of next year and a fifth in early 2004.

Graphic: cont06gbz



CCT throughput leaps in south China boom