CMHI set to build multi-purpose port in western Shenzhen

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Oct 2007

Leading mainland port operator China Merchants Holdings (International), which has been increasing investment in large bulk cargo terminals, said it will develop a multi-purpose port at Ma Wan port zone in western Shenzhen. The company said the first of five berths will be built at a cost of 700 million yuan (HK$725 million). The port operator also runs terminals in Shekou and Chiwan. In the first half of the year, its ports in western Shenzhen handled 4.98 million 20-foot containers, the company said last month.President and director Fu Yuning did not rule out the possibility of acquiring overseas ports jointly with Shanghai International Port (Group), in which it has a 26.5 percent stake. But he stressed CMHI will only target markets with high potential.He added that CMHI can launch any potential projects before work at its undertaking in Vietnam is completed.In April, China Merchants Group, parent of the Hong Kong-listed unit, joined hands with Vietnam National Shipping Lines to build and operate Ben Ding Sao Mai Seaport and ancillary projects. The project was the firm's first investment outside China.As the second largest shareholder of Modern Terminals Limited, CMHI believes Hong Kong does not need the proposed Container Terminal 10, unless there are capacity constraints.Container Terminal 10 was outlined in the Hong Kong Port Master Plan 2020 commissioned by the government."The cargo handling capacity of Hong Kong [ports] is increasing year- on-year, but it can, by enhancing operating efficiency, meet the growing demands for transshipment," Fu said.He said CMHI will also improve efficiency in handling transshipment cargo in western Shenzhen ports.Shekou Container Terminals, together with Chiwan Container Terminal, launched the South China Shuttle Barge Service, a transshipment service which it advocates as cost- effective for ports along the Pearl River and western Shenzhen.Shares of CMHI soared 7.34 percent to close at HK$51.20 on Friday.