Tuesday, March 18, 2014

Cosco Pacific and China Shipping Terminal Development buy stakes in Hong Kong terminal

Billionaire Li Ka-shing has sold 60 percent of Hutchison Port Holdings Trust's stake in Hong Kong Terminal 8 West to Cosco Pacific and China Shipping Terminal Development for $318 million.

Cosco Pacific purchased a 40 percent stake and China Shipping Terminal Development acquired a 20 percent share of the Hong Kong facility.

The deal will improve port operations, according to Gerry Yim, HPHT chief executive.

"Li has long lost confidence in the Hong Kong port business when he decided to spin off the operations of HPHT in the Singapore Exchange in 2011," an industry analyst said.

"The port business is still a cash cow but the ports in Hong Kong have turned mature and could register low growth," said Benjamin Lo, an analyst at Nomura International.


The Hong Kong port has been overtaken by Shenzhen, which has replaced it as the world's third busiest container terminal. Hong Kong's dockworker strike last year caused shipping lines to reroute cargoes to Shenzhen and most have not returned.

For more of the South China Morning News story: scmp.com

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