Enhance competitiveness of the Terminals
Further strengthen Hong Kong as an International Shipping Hub
Hong Kong – 9 January 2019 – COSCO SHIPPING Ports Limited (”COSCO SHIPPING Ports” or “CSP”) today announced that COSCO-HIT Terminals (Hong Kong) Limited (“CHT”), Asia Container Terminals Limited (“ACT”), Hongkong International Terminals Limited (“HIT”) and Modern Terminals Limited (“MTL”) entered into a Hong Kong Seaport Joint Operating Alliance Agreement. The four companies will collaborate with each other for the efficient management and operation of the 23 berths across Terminals 1, 2, 4, 5, 6, 7, 8 and 9 of Kwai Tsing, New Territories, Hong Kong (the “Combined Terminal Facilities”), with an aim to improving the value proposition of the Combined Terminal Facilities in the context of growing regional competition and maximising efficiencies to the benefit of customers and the industry.
Taking into account the changing dynamics of the shipping industry, in particular with the formation of strategic alliances between shipping lines and the growing use by lines of mega vessels, the cooperation between CHT, ACT, HIT and MTL will create additional capacity by increasing the flexibility in the overall berth and yard planning among the 23 berths across the Combined Terminal Facilities to better accommodate the need of shipping alliances and optimise utilisation of the Combined Terminal Facilities and cost synergies.
Mr. Zhang Wei, Vice Chairman and Managing Director of COSCO SHIPPING Ports said, “We are delighted to collaborate with HIT and MTL with an aim to enhance the efficiency of Kwai Tsing Terminals. The cooperation enables the Combined Terminal Facilities to effectively deploy their facilities and manpower, provide more efficiency services to customers and enhance the competitiveness of the Terminals. The Hong Kong Seaport Alliance should further strengthen Hong Kong’s status as an international shipping hub; I believe Hong Kong will continue to play a vital role in the regional and global trade.”