Signing of Co-management Agreement Between Hutchison Port Holdings Trust and Cosco Shipping Ports Ltd

Hutchison Port Holdings Trust and COSCO SHIPPING Ports Limited has announced that Hongkong International Terminals Limited (HIT), COSCO-HIT Terminals (Hong Kong) Limited (CHT) and Asia Container Terminals Limited (ACT) have yesterday entered into a formal collaboration for the efficient co-management and operation of 16 berths across Terminals 4, 6, 7, 8 and 9 (together the “Combined Terminals”) at Kwai Tsing, New Territories, Hong Kong.

In the presence of Mr Eric Ip, Group Managing Director of Hutchison Port Holdings Limited, Mr Xiaowen Huang, Executive Vice President of China COSCO Shipping Corporation Limited and Mr Wei Zhang, Vice Chairman and Managing Director of COSCO SHIPPING Ports, Mr Gerry Yim, Chief Executive Officer of Hutchison Port Holdings Trust and Mr Dayu Zhang, Deputy Managing Director of COSCO SHIPPING Ports signed the Co-Management Agreement yesterday. (Front, left to right) Mr. Dayu Zhang, Mr. Gerry Yim (Back, left to right) Mr. Wei Zhang, Mr. Eric Ip, Mr. Xiaowen Huang

In a confident response to the changing dynamics of the global shipping industry, which are reflected by the emergence of new strategic alliances between shipping lines, the three companies believe that the Combined Terminals collaboration will allow for the most effective use of facilities and manpower resources. Efficiency will also be enhanced under the new set-up as one management team will be responsible for the terminals’ day-to-day operations.

This new strategic arrangement would create additional capacity by increasing flexibility in berth and yard planning among all three terminals. This timely improvement will allow the Combined Terminals to better accommodate the need of shipping alliances for enhanced service and increase the overall competitiveness. This forward-looking move will help sustain Hong Kong's position as a leading transshipment hub in the region.

The revenue and expenses from the management and operation of the facilities of the Combined Terminals will be allocated among the parties by reference to the respective designed capacity of the facilities owned by each party.

HIT owns 12 berths in Terminals 4, 6, 7 and 9 while CHT and ACT own 2 berths each in Terminal 8 East and Terminal 8 West respectively.

Hong Kong International terminals - Image courtesy: HIT

Source: HIT