Hutchison Whampoa subsidiary Hong Kong International Terminals is to link up with AP Moller Maersk Group to take a majority stake in the Pearl River Delta's Dachan Bay Phase II container terminal, giving HIT its first foothold on Shenzhen's west bank.
Yantian port, controlled by HIT and Shenzhen Yantian Port Group, accounted for the majority of container throughput in Shenzhen until overtaken in 2005 by west Shenzhen ports, comprising Shekou, Mawan and Chiwan, controlled by China Merchants Holdings (International).
Yantian's dominance faded as manufacturing plants moved to west Guangdong and cities such as Zhongshan and Shunde, making terminals on that side of Shenzhen more attractive to shippers. Better-equipped river terminals along the Pearl River also encouraged more barges to use Shekou.
Shekou's market share, and the extent that its growth had outstripped Yantian, might be misrepresented by double counting linked to the river trade, but HIT could not operate only in the eastern part of Shenzhen given the more diversified catchment area within the Pearl River Delta, said an industry veteran.
Dachan Bay, 10 kilometres north of Chiwan port, is also better placed geographically than other west Shenzhen ports, according to a senior manager with a shipping line. The first berth in Dachan will come on stream by the end of the year.
HIT and Maersk will replace the operator of Dachan Bay Phase I, Modern Terminals, controlled by Wharf (Holdings), as the majority shareholder of Phase II, with the Shenzhen government and China Merchants holding the remaining stake.