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SCMP Reporter

HUTCHISON International Port Holdings (HPH) has signed a joint venture with the Shantou Port Authority to develop two 20,000 tonne container berths in Zhuchi port, Shantou, in Guangdong province.

  The deal will help the group form its ''Hutchison Port network'' with Hong Kong International Terminals (HIT) in Hong Kong and Yantian port in Shenzhen.

  The network is intended to cater for the needs of the entire south China region.

  HIT managing director John Meredith said yesterday the group was still looking at several European ports for possible equity investment.

  ''We look at about three ports a month around the world, but no investment target has emerged yet,'' he said.

  ''We only go in when a project seems viable.''   HIT has investments in port projects in Yantian, Zhuhai and Nanhai in southern China.

  The Shantou deal involves two 460-metre by 10.5-metre water depth berths with back-up yards of 395,000 square metres.

  Construction work will begin immediately, the group said.

   HPH has a 70 per cent holding in the venture, which is expected to be completed in 1996.

  In Europe HIT's parent company, Hutchison Whampoa, owns 77.5 per cent of HIT and 75 per cent of the Felixstowe container port in Britain.

  The group set up HPH last month to manage its investments in ports and other shipping-related projects.

 The establishment of HPH has sparked speculation that the group will hive off its port interests for a separate listing to raise funds for its expansion programme in China.

  Although some analysts described it as a logical move, Hutchison chairman Li Ka-shing has denied the group intends to spin off its port interests.

   Mr Meredith, who is also managing director of HPH, said the company was established to clear up confusion about the group's growing investments in port and shipping projects.

  ''Although HIT is responsible for the management of Felixstowe and Shanghai, it is not an investor in these ports. As a result, the shipping community and our joint venture partners were a bit confused about HIT's involvement,'' he said.

  ''Basically, HPH is a management company which is responsible for overseeing the investments of the Hutchison group, wherever they are, in ports and shipping.''   Mr Meredith said it would have become even more confusing if HIT were to invest in a port and Felixstowe was to be responsible for its management.

  ''People would have then asked what is the relationship between the new port and Hong Kong.''   With the establishment of HPH, the same management group would be responsible for all port and shipping-related investments, he said.

   The group recently opened San Shan port in Nanhai, which serves the northern part of Guangdong province, and signed a joint venture agreement to develop Zhuhai port (Gaolan), which will serve the western part of the province.

   Zhuchi port will serve eastern Guangdong.

   These ports, together with HIT's facilities in Kwai Chung and Yantian port in Shenzhen, will form an efficient port network catering for the needs of the entire south China region, Mr Meredith said.



Hutchison to develop berths in Shantou