HPH sells strategic stakes in ACT to Cosco Pacific, CSTD

HPH said in a stock market announcement that Cosco Pacific and China Shipping Terminal Development (CSTD) had taken stakes of 40% and 20% respectively in ACT, which owns and operates Container Terminal 8 West in Hong Kong's Kwai Chung terminals, for a total price of HKD2.47bn.

The terminals are adjacent to HPH Trust’s existing Hongkong International Terminals (HIT) and COSCO-HIT Terminals container terminals and are good fit, the announcement said.

Cosco Pacific vice-chairman and managing director Wang Xingru was upbeat on the new partnership's prospects. “Further to our existing successful joint venture with HPH Trust at COSCO-HIT’s Terminal 8 East in Hong Kong, I believe that Terminal 8 East and West will form a competitive platform to provide comprehensive and efficient terminal services to our customers. Our investment in ACT will enhance our terminal profitability and further strengthen our presence in Hong Kong which is one of the major gateways to South China," Wang said.

Meanwhile CSTD managing director Fang Meng said: “We are pleased to team up with HPH Trust and COSCO Pacific in the ACT investment. This is CSTD’s first container terminal investment in Hong Kong and it extends our geographic presence along China’s coastal ports. The single contiguous 1,380-metre berth at Container Terminal 8 will enable us to establish Hong Kong port as a key container shipping hub for the deployment of ultra large containerships, including the 19,000-teu vessels which are scheduled for delivery in November.”

“This collaboration with Cosco Pacific and CSTD is a significant milestone achievement for HPH Trust that bodes well for the future of ACT, which handled over one million TEU in 2013. This will enhance the city’s competitiveness and bolster all aspects of port operations including flexibility, efficiencies, synergies, and profitability," concluded HPH Trust ceo Gerry Yim.

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