Major transformations for CMPort

During a press conference to announce the operator’s positive annual results, Chairman Li Xiaopeng said that in 2016, the group achieved major transformations in homebase port development and overseas expansion.

The increase in throughput was mainly driven by the additional contribution from a new equity investment in Dalian Port (PDA) Company Limited in early 2016, thereby enabling the group to sustain its leading position among Chinese port operators.

Meanwhile, the group’s operations in Hong Kong and Taiwan further contributed an aggregate container throughput of 6.88 million teu, representing a growth of 12.0% over last year.

CMPort used 2016 for active promotion of transformation and upgrades in homebase ports to enhance their attractiveness to new business.

For example, the group enhanced the overall competitiveness of the West Shenzhen Port Zone by actively promoting upgrade of hardware, resources consolidation and optimisation of its cargo collection-distribution system.

The cargo collection-distribution system saw the West Shenzhen Port Zone entering into cooperation with Sinotrans Guangdong Co Ltd to explore the effective integration of logistics, shuttle-barges and port resources. The aim of this partnership is to enhance the attractiveness of the West Shenzhen Port Zone for cargo from the hinterland in the Pearl River Delta region.

Overseas expansion

When it comes to overseas business, overseas projects contributed 17.7% of its total container throughput, so this area has become a core growth driver of the group.

By actively pursuing the deployment and establishment of checkpoints along the Maritime Silk Road, the group has been able to take advantage of investment opportunities in ports, logistics and infrastructure to expand the group’s global port network.

One example of this is at the Djibouti International Free Trade Zone, where the group actively participated in the upgrade of its ports facilities and the planning and construction of surrounding industrial zones, laying a foundation to explore a more comprehensive port development model.

As a result of this, Port de Djibouti S.A. (PDSA) contributed a bulk cargo volume of 6.52 million tonnes, reflecting an increase of 25.8% when compared to last year.

Benefitting from the rapid growth of the port operation of Colombo International Container Terminals Limited (CICT) in Sri Lanka and the additional contribution from Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret Anonim Şirketi in Turkey, total container throughput handled by the group’s overseas ports grew by 5.7% year-on-year to 16.96 million teu.

Pushing ahead into 2017, Mr Li said that against the backdrop of a feeble economic recovery and the restorative growth of world trade, the global port industry is again anticipating a picture of slow growth in 2017.

But none-the-less, the group expects its port operations will still maintain a relatively positive growth mainly driven by the rapid growth of new projects and overseas projects.