River port operator CIG Yangtze Ports plans to embark on a HK$800 million second-phase expansion in central China by the end of this year.
CIG, which listed on the Growth Enterprise Market in September last year, has an 85 percent stake in the two- berth Phase I of Wuhan International Terminal Port and is planning to take a 40 percent stake and develop four berths in Phase II, chairman Edward Chow Kong-fai said after the annual general meeting held in Hong Kong.
The company, spun off from Chow's China Infrastructure Group, has signed a binding agreement with Wuhan's provincial government and hopes to obtain approval by the end of this year. It could use bank loans or other debt instruments to fund the expansion, Chow said.
After the Phase II expansion is completed in 2010, Wuhan International Terminal's capacity will increase to 1.2 million TEUs (20-ft equivalent units).
It will be the largest port in western and central China, and will account for 80 percent of Wuhan's total throughput.
Phase I of the terminal moved 107,384 TEUs of goods in 2006, an increase of 82 percent from 59,098 TEUs in 2005, according to CIG's annual report.
Chow said Hong Kong was charging a fee of HK$2000 per TEU compared with Shenzhen, which charges 1,000 yuan (HK$1,015.1), and Shanghai, which charges 600 yuan.
"Wuhan International Terminal charges less than China's average of 425 yuan per TEU, so there is still room to increase terminal charges," Chow added.
Terminal charges accounted for 75 percent of the company's total revenue in 2006, while logistics business accounted for 15 percent.
Chow hopes the logistics business will increase to 25 percent in the future, after the company sets up a logistics center in Wuhan with the aim of expanding from port operating to logistics.
Chow said last year that the company is looking at the possibility of listing on other markets such as London. However, he declined to speak about this plan Monday.
CIG, which listed on the Growth Enterprise Market in September last year, has an 85 percent stake in the two- berth Phase I of Wuhan International Terminal Port and is planning to take a 40 percent stake and develop four berths in Phase II, chairman Edward Chow Kong-fai said after the annual general meeting held in Hong Kong.
The company, spun off from Chow's China Infrastructure Group, has signed a binding agreement with Wuhan's provincial government and hopes to obtain approval by the end of this year. It could use bank loans or other debt instruments to fund the expansion, Chow said.
After the Phase II expansion is completed in 2010, Wuhan International Terminal's capacity will increase to 1.2 million TEUs (20-ft equivalent units).
It will be the largest port in western and central China, and will account for 80 percent of Wuhan's total throughput.
Phase I of the terminal moved 107,384 TEUs of goods in 2006, an increase of 82 percent from 59,098 TEUs in 2005, according to CIG's annual report.
Chow said Hong Kong was charging a fee of HK$2000 per TEU compared with Shenzhen, which charges 1,000 yuan (HK$1,015.1), and Shanghai, which charges 600 yuan.
"Wuhan International Terminal charges less than China's average of 425 yuan per TEU, so there is still room to increase terminal charges," Chow added.
Terminal charges accounted for 75 percent of the company's total revenue in 2006, while logistics business accounted for 15 percent.
Chow hopes the logistics business will increase to 25 percent in the future, after the company sets up a logistics center in Wuhan with the aim of expanding from port operating to logistics.
Chow said last year that the company is looking at the possibility of listing on other markets such as London. However, he declined to speak about this plan Monday.