Hong Kong's container port operator Modern Terminals is planning to spend HK$10 billion (US1.2 billion) to upgrade and expand its mainland China facilities over the next three years partly through acquisitions. The terminal operator's cargo ports in southern China and the Yangtze River Delta are said to have enjoyed "favourable growth" this year, according to a China Daily report. Modern Terminals chief executive Sean Kelly said: "First, we will concentrate on the operation of our existing ports on the mainland and then look for expansion. We are interested in the region but have yet to decide where to build our next port."
The terminal operator is expected to begin operating its new Dachan Bay Terminal One in Shenzhen by the end of next year.
The report also pointed to experts saying that Hong Kong ports' slowing throughput growth is not a reason for concern yet as the city's ports still enjoy higher profitability than its fast growing neighbours across the border and many ports on the mainland are funded by Hong Kong shareholders.
Mr Kelly was cited in the report lending weight to calls that Hong Kong reduce its operating costs to compete better with Shenzhen, saying that it costs about US$300 less to move one TEU through Shenzhen terminals, which are closer to PRD factories, rather than through Hong Kong ports owing to HK's higher trucking and port costs.
The terminal operator is expected to begin operating its new Dachan Bay Terminal One in Shenzhen by the end of next year.
The report also pointed to experts saying that Hong Kong ports' slowing throughput growth is not a reason for concern yet as the city's ports still enjoy higher profitability than its fast growing neighbours across the border and many ports on the mainland are funded by Hong Kong shareholders.
Mr Kelly was cited in the report lending weight to calls that Hong Kong reduce its operating costs to compete better with Shenzhen, saying that it costs about US$300 less to move one TEU through Shenzhen terminals, which are closer to PRD factories, rather than through Hong Kong ports owing to HK's higher trucking and port costs.