China Merchants sights land for SCT III
CHINA Merchants Holdings (International) Company Limited (CMHI) is to buy a parcel of land in Shekou and increase its share in the Zhangzhou China Merchants Port Company Limited (Zhangzhou CM Port).
The company will also be disposing of its interest in the China Merchants Shekou Holdings Ltd.
The land, totalling 650,000 square metres is at Shekou’s Embankment 3, where Shekou Container Terminals Phase III will be built.
Phase III will include three container-specialised berths, numbers 5, 6 and 7, with the total investment coming to CNY3.1 billion (US$374.5 million).
CMHI owns the entire project.
Phase III has a 1,200 metre long berth with a depth of 17 metres and an expected annual capacity of 2 million TEU.
Berth 5 is scheduled for completion in mid-2005 whereas the other two berths will become operational in 2006.
CMHI currently owns 32.5 per cent of Shekou Container Terminals Phase 1 (berths 1 and 2) and a 51 per cent of Shekou Container Terminals Phase II (berths 3 and 4).
The land for Phase III is next to Phase I and Phase II, allowing the new terminal to share resources.
Dr Fu Yuning, CMHI’s chairman, said the construction of SCT III is a crucial step in the CMHI port strategies in further developing the Western Shenzhen Port Area and accommodating the fast growing container market in the Pearl River Delta.
On completion of SCT III, the company said it will be able to consolidate its present port resources in such a way that it can transform the Western Shenzhen Port Area into a professionally managed mega container terminals area and a base for transit-containers in south China.
CMHI is increasing its shareholding in Zhangzhou CM Port by 11 per cent, bringing its total holding to 60 per cent.
Dr Fu said: “Zhangzhou Port is a significant port to CMHI in the Xiamen Bay area. We remain upbeat about the steady growth trend in economy and trade in this region in the years to come.
“Increasing our stake in Zhangzhou CM Port will strength CMHI’s control and management in the port business and is a reflection of our strong confidence.”
Zhangzhou Port has been designated by the Ministry of Communication as the pilot port for direct trade with Taiwan, and port business has improved considerably this year.
It recorded a net profit of nearly CNY10 million for the first nine months of this year, realising profits one year ahead of schedule, the company said.
Presently, berths 1 and 2 are under construction. On completion next year, the two berths will have a total capacity of 1 million TEU.
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