Shanghai Port Container reported disappointing third-quarter results yesterday in a sign that competition between mainland port operators was getting tougher.
'There's a tightness in the supply of port handling capacity in China and competition among the operators will get a lot more severe from now on,' said a European securities firm analyst.
Shipping lines such as AP Moeller-Maersk and P&O Nedlloyd have been investing heavily in mainland ports, making it more difficult for operators outside the main lines to grow their business.
The pressure on the ports would be even greater without the backing of the major shipping lines, analysts said.
Shanghai Port Container's net income in the quarter rose 2 per cent year on year to 329 million yuan - a major decline from the 20 per cent growth for the same period a year ago.
The company said profits were cut by a massive rise in the cost of finance which increased 135.4 per cent to 77 million yuan.
