Hong Kong: Smashing all projections, Orient Overseas (International) Ltd, the listed parent of Orient Overseas Container Line, is selling four North American container ports to the Ontario Teachers' Pension Fund of Canada for a stunning US$2.35bn plus another $50m of net debt. The firm, chaired by CC Tung (pictured), says it expects to complete the sale of the ports - two in Vancouver and one each in New York and New Jersey - by the end of the first quarter next year. No analyst had predicted higher than $1.5bn for the sell off. This marks a new high benchmark for terminal sales - a sector that has gone berserk since the sale of CSX World Terminals two years ago. Since then P&O Ports and Associated British Ports have been sold at huge premiums while Hutchison sold PSA a 20% stake in its ports division. The catalyst for all this dramatic container terminal price escalation has been DP World from Dubai which has aggressively set out its stall to become a world leader with seemingly bottomless pockets to achieve its goal. [24/11/06]
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