COSCO Pacific rides 40% growth in Chinese port volumes
COSCO Pacific Ltd., a stock market-listed affiliate of China Ocean Shipping Co. group, said today the mainland China container terminals in which it has an interest increased their total container traffic 40 percent in the first half of the year to 9.6 million TEUs, from 6.9 million TEUs in the first half of 2003.
However, statistics cited by China Shipping Container Lines in an interim financial report published today suggest a more moderate growth in Chinese port traffic for the whole year. China Shipping said the Ministry of Communications of China has forecast a 20.4-percent increase in container throughput at Chinese ports this year, to 57 million TEUs.
“The directors believe that the shipping market in China will maintain persistent growth in 2004,” China Shipping said. “Moreover, the latter half of the year is always the peak season.”
COSCO Pacific, which has shareholdings in many sea and river terminals in China, as well as smaller operations in Hong Kong and Singapore, reported that first-half volume growth was led by an average 125-percent jump in traffic to 3.3 million TEUs at its terminals in the Bohai Rim, in North China. Qingdao Qianwan Terminal boosted its traffic 248 percent to 2.1 million TEUs. Qingdao Cosport Terminals increased throughput 39 percent to about 180,000 TEUs. Dalian Port Container Co., Ltd. raised traffic volumes 35 percent to about 970,000 TEUs.
In the first half of this year, COSCO Pacific entered into agreements to invest in two container terminals in North China: Tianjin Five Continents International Container Terminal Co. Ltd. and Yingkou Container Terminals Co. Ltd. It has also commenced construction of Dalian Automobile Terminal, another North China port development.
In South China, COSCO Pacific said throughput at Yantian International Terminals (phases 1, 2 and 3) rose 20 percent in the first half to 2.8 million TEUs, whereas volume at the nearby Shekou Terminals dropped 20 percent to about 510,000 TEUs.
Throughput at the terminals located in the Yangtze River delta, including Shanghai, rose 25 percent in the first half to 3.1 million TEUs. Shanghai Terminals saw a 7-percent volume increase to 1.8 million TEUs. Shanghai Pudong International Terminals rose its throughput 61 percent to 1.1 million TEUs. Zhangjiagang Win Hanverky Terminal raised its traffic 26 percent to about 160,000 TEUs and Yangzhou Yuanyang International Ports, located on the Yantze, made a first-time volume contribution of about 40,000 TEUs.
Outside mainland China, the joint COSCO-HIT terminal in Hong Kong handled about 800,000 TEUs in Hong Kong in the first half, 14 percent more than a year earlier. While the new COSCO-PSA Terminal in Singapore had a first-time volume of about 270,000 TEUs.
The combined throughput of mainland China and other terminals in which COSCO Pacific has an interest was 10.7 million TEUs in the first half, up 42 percent from the 7.6 million throughput recorded for the corresponding period of 2003.
“The economy in the People’s Republic of China has witnessed a new era of growth,” COSCO Pacific said in a statement. “As a result of the economic reform, the enormous domestic demand in the PRC has become a driving force in the development in the global shipping industry and economic growth.”
The company said it saw a “minimal” impact on its business from the adoption by the Chinese government of a series of macro-economic controls to regulate certain overheated industries and from the rise in energy prices.
A port and container leasing company, COSCO Pacific increased its profit attributable to shareholders rose by 26 percent to $93 million in the first half of the year, thanks to higher profit contributions from affiliates, as revenue rose 3 percent to $129.8 million.
COSCO Pacific recorded profit contributions from new investments such as Qingdao Qianwan Container Terminal Co., Ltd., COSCO-PSA Terminal Private Ltd., COSCO Logistics and Yangzhou Yuanyang International Ports Co. Ltd.