Revenue leapt by 80% for COSCO Shipping Ports (CSP) to US$495.5m in the first half of 2018, driven by increasing trade volume and more calls from the Ocean Alliance.
Total throughput increased by 27% to 56.7m teu, including volumes from Qingdao Port International (QPI) which have been included since May 2017. Excluding QPI, throughput increased by 13.3% to 47.3m teu on a comparable basis.
With political tensions ratcheting up between China and the US over trade, the Hong Kong-based terminal operator noted that the impact of the friction has so far been limited.
At a press conference, Zhang Wei, vice-chairman and managing director at CSP, said: “The trade war impact is relatively mild [on our business] so far, as we have limited exposure to US trade,” reported the South China Morning Post.
“Some products could be on the US’s next tariff lists,” he added. “As much as 10 per cent of shipments at our ports are related to US trade. They could be affected [by the trade war] eventually.
“We are closely watching how the shipping volumes may change or shift, and may seek potential investment opportunities in those regions [Southeast Asia and South Asia].”
In a statement, CSP noted that “Sino-US trade frictions, the rise of trade protectionism, geopolitical uncertainties and the upward trend of interest rates have the potential to place serious pressure on the development of global trade.”
In the first half of 2018, throughput from the group’s subsidiaries increased by 35% to 10.m teu, accounting for 19% of the group’s total throughput.
Throughput from the group’s non-controlling terminals rose by 25% to 45.8m teu.
Over the first six months of the year, throughput generated from the Greater China region increased by 24% to 44.6m teu, accounting for 79% of the group’s total.
Currently, the group is diversifying its business to terminal extended supply chain services in a bid to enhance productivity.
At Nantong Tonghai Terminal., which began operations at the end of June 2018, the group will develop a container freight station and logistics park.
CSP’s overseas terminals delivered growth of 37% to 12.1m teu in the first half of the year.
Abu Dhabi Terminal, the first overseas greenfield subsidiary of CSP, will start trial operation by the end of this year and will officially commence operation in the first quarter of 2019, with annual designed capacity of 2.5m teu.