Hutchison, Yantian Port Group to expand port of Yantian
Hong Kong-based port operator Hutchison Port Holdings (HPH) and Yantian Port Group (YPG) Tuesday signed a joint-venture contract to develop the Yantian Port Expansion Project.
HPH, the world’s largest terminal operator, will hold 65 percent of the joint venture, with YPG taking the remaining 35 percent share. The two companies will invest a total of Yuan10 billion ($1.23 billion) increasing the site to 344 hectares from 208 hectares, and constructing six new container berths capable of handling ships with more than 10,000 TEUs capacities.
The first berth is expected to be opened in the second half of 2006. The expansion project is due for completion by 2010 when Yantian will have a total of 15 deepwater container berths.
The Shenzhen market in China, served by the ports of Shekou, Yantian and Chiwan, has seen rapid growth over the last few years. Yantian’s annual throughput has increased from 13,000 TEUs in 1994 to 6.26 million TEUs in 2004. The project is anticipated to add two million TEUs in handling capacity to the South China port.
Li Ka-shing, chairman of Hutchison Whampoa Ltd., parent company of HPH, was at the signing ceremony. “We firmly believe that South China will remain one of the fastest growing regions in the world, where economic development will continue to experience significant rates in growth,” Ka-shing said.