Through investments of 40% and 20% of “effective equity and loan interests” in HPH’s subsidiary Asia Container Terminals Holdings Limited (ACT) and its group companies for a total consideration of HK$2.472bn (US$403.4m), COSCO Pacific and China Shipping will help develop ACT’s Container Terminal 8 West at Kwai Chung Port, Hong Kong.
A HPH Trust spokesperson told Port Strategy: “Hong Kong port faces fierce competition from ports in the region and the situation will further intensify in view of the slower trend in global trade growth, increasing deployment of mega-vessels and large-scale shipping line alliances.”
“The container terminal operators in Hong Kong need to better prepare for the rapidly changing market dynamics through optimisation of assets to generate operational efficiency and flexibility as well as increasing capacity,” the spokesperson added.
HPH Trust and COSCO have already worked together on the development of the Container Terminal 8 East, but for CSTD, it’s the company’s first container terminal investment in Hong Kong, extending its geographic presence along China’s coastal ports.
The single contiguous 1,380m berth at Container Terminal 8 will enable HPH to establish Hong Kong port as a key container shipping hub for the development of ultra large containerships, including the 19,000 teu vessels which are scheduled for delivery in November.
COSCO says together, Terminal 8 East and West will create a competitive platform in one of the major gateways to South China to provide complete, efficient terminal services to its customers.
