Monday , 23 September 2019
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China Merchants Port records 14% throughput growth

China Merchants Port Holdings Company (CMPort) has reported a 14.5% year-on-year rise to 96m teu in its overall container throughput in 2016.

In mainland China, container volumes were up 17% year-on-year to 72m et in 2016, mainly boosted by the contribution from a new equity investment in Dalian Port (PDA) Company Limited early last year.

However, while most of the company’s facilities in mainland China reported year-on-year volume growth, CMPort’s operations suffered a 2.4% fall in container throughput in Qingdao and a 2.1% fall in Ningbo Daxie.

The group’s operations in Hong Kong and Taiwan combined rose by 12% year-on-year to 6.9m teu, of which a total of 5.1m teu were handled in Hong Kong, representing a 11.5% increase over 2015.

Container volumes at the group’s overseas facilities grew by 5.7% year-on-year to 17m teu in 2016.

According to the company, the overseas results were boosted by rapid growth of Colombo International Container Terminals Limited (CICT) in Sri Lanka, and the contribution from Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret Anonim Şirketi in Turkey, the acquisition of which was completed in 2015.

CICT, which has a container handling capacity of 2.6m teu per year, handled a total of 2m teu in 2016.

A statement by the company noted that the group “actively participate in the tender of east Colombo port project, in order to strive for bigger development capacity”.

Boosted by the additional contribution from the newly acquired facilities, and in minor part by volume growth in existing terminals, profit attributable to equity holders was up 14.3% year-on-year to HK$5.5bn (US$708m) in 2016.

However, recurrent profit attributable to equity holders was up only 2.7% year-on-year to HK$4.6bn (US$592m).

In 2016, revenue from the group’s core ports operation, which includes revenue of the company and its subsidiaries, and its share of revenue of associates and joint ventures, was up 14% year-on-year to HK$24.5bn (US$3.1bn).

“In light of unfavourable global economic and trade environment, the global ports growth continued to slow down in 2016,” a company statement noted.

“The group insisted on following the strategic guidance and adhered to the three strategic directives of ‘focus on domestic markets, overseas expansion and innovation’, seeking to achieve breakthroughs among six major aspects including homebase port development, ports consolidation, overseas expansion, capital management in existing portfolio by integration of industry with elements of finance, operational transformation and business innovation.”

The company’s chairman Li Xiaopeng said: “The year of 2017 is critical to achieving the three-year strategic goal.

“Constantly gravitating upon the strategic vision of ‘becoming a world-class comprehensive port services provider’, the group will further promote the construction of a comprehensive port ecosystem, enhance quality, efficiency and capability, as well as strengthen, optimise and expand the core ports operation.”

According to Xiaopeng, with the group continuing to explore port acquisition and consolidation opportunities and strengthen port management capacity, and thanks to the global trend of economic recovery, the company’s container throughput is expected to exceed 100m teu in 2017.