China Merchants performs strongly across the board

China Merchants performs strongly across the board
CMPort's managing director Dr Bai Jingtao

Recurrent profit at China Merchants Port Holdings (CMPort) shot up by 37.1% year-on-year to US$290m in the company’s half year results.

Container throughput grew by 8.9% to a record 50.2m teu because of the strong performance of Chinese import and export trade, while domestic demand experienced restorative growth.

CMPort’s facilities in mainland China contributed 37.9m teu of this figure, an increase of 9.9%, while throughput at ports in Hong Kong and Taiwan grew by 21% to 3.75m teu.

The Ningbo Daxie and Hong Kong facilities experienced the strongest growth, with traffic in both locations increasing by 29% to 1.64m teu and 2.91m teu respectively.

The company’s overseas facilities had mixed fortunes as traffic at the Colombo facility grew by 21% to 1.1m teu, while the Djibouti facility’s throughput fell by 3.7% to 0.48m teu.

CMA CGM’s Terminal Link, which CMPort has a 49% stake in, also suffered a tricky half year as throughput fell by 4.6% to 5.98m.

Elsewhere the company’s port operation’s earnings before interest, tax, depreciation and amortisation (EBITDA) performed strongly, rising by 9.2% to US$753m.

Development work at the West Shenzhen facility continued as the second phases of the Tonggu Channel and Western Public Channel projects commenced earlier this year.

Abroad, CMPort entered into a concession agreement in relation to Sri Lanka’s Hambantota port in June.

The operator’s half year net profit soared to US$402m, although this is largely attributed to the one-off US$813m sale of equity interest in China International Marine Containers (CIMC).