Port operator looks to recent investments
China Merchants Holdings (International)
China Merchants Holdings (International), one of the mainland's largest port operators, will spend the year digesting its recent investments rather than continuing to expand its network of port facilities, according to company officials.
Chairman Fu Yuning said the central government was expected to soon approve its 5.57 billion yuan purchase of a 30 per cent stake in Shanghai International Port Group - operator of the world's third-largest port.
The company has completed its strategic layout of ports in Hong Kong and on the mainland, and plans to focus on strengthening management control and logistics services.
The purchase will give China Merchants, which operates ports mainly in Shenzhen and Hong Kong, a foothold in the Yangtze River Delta through Shanghai's Waigaoqiao and Yangshan ports.
Consolidated net profit for the 12 months to December last year jumped 40 per cent to $2.06 billion.
China Merchants handled 7.2 million teu (20-ft equivalent units) at its mainland terminals last year, an increase of 44 per cent, while throughput at its Hong Kong terminals - it owns a 22 per cent stake in Modern Terminals - rose 13 per cent to 5.6 million teu.
Container volume is projected to increase at least 15 per cent this year and to include a hefty contribution from the Shanghai ports' 14 million-teu throughput. Across its network, the company is expected to handle 37 million containers next year, rising to 45 million by 2008.
The company's turnover for the year rose 13 per cent to $2.41 billion, with port-related businesses contributing about $950 million to earnings, and container manufacturing $624 million.
