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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (3993)	12/27/2004 3:55:28 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China's ports No. 1 in 2004 27/12/2004 8:06 China's ports handled more cargo than any other country in the world this year, and Shanghai appears set to leap ahead of Rotterdam as the world's business shipping city, according to the Ministry of Communications. Total cargo throughput at China's ports increased 21.3 percent to 4 billion tons in 2004, the ministry said. In the container sector, throughput jumped 26.4 percent to 61.5 million TEUs (20-foot equivalent units). Total cargo passing through Shanghai Port is expected to exceed 380 million tons by the end of this year, giving the city the top spot held last year by the Netherlands port of Rotterdam. China's No. 1 position worldwide follows stepped up spending this year on infrastructure construction at the country's ports. Investment increased 33 percent in coastal and freshwater areas, leading to the addition of 67 new berths and the expansion of throughput capacity by 120 million tons. Experts said the overall throughput of China's ports is still inadequate, noting that cargo volume is expected to grow significantly in the year ahead. The ministry said it will further increase port construction to meet the expanding demand. Meanwhile, Shanghai's state-owned port operator is targeting an increase in container throughput of at least 17 percent next year. Shanghai International Port (Group) Co Ltd, or SIPG, the city's largest port operator, expects to handle 17 million to 17.5 million TEUs next year, the company said in a statement. Chen Xueming, a port official, noted that Shanghai moved 11 million TEUs of containers last year following Hong Kong's more than 20 million TEUs and Singapore's 18 to 19 million. "Shanghai is the third-biggest container port in the world in terms of annual container throughput," Chen said. "But we still lag far behind the top two." If the city does manage more than 17 million TEUs in 2005, the gap between Shanghai and Singapore will be narrowed. SIPG is also preparing for a company restructuring. "We are endeavoring to attract four to five strategic investors to restructure SIPG into a joint-stock company from a state-owned enterprise," Chen said. Hong Kong-based China Merchants Holdings (International) Co Ltd would be the second-biggest shareholder in the new company by investing 7 billion yuan (US$843 million), while SIPG would serve as the holding company, with a stake of about 60 percent, he revealed. "We are likely to arrange the partnership and sign the agreement with China Merchants around the beginning of next year," he noted. Chen didn't deny that negotiations were under way with several investors who see huge profit potential in the port. But he declined to disclose details. After restructuring, SIPG also plans to list shares. "We may be poised to list by the end of next year," Chen said. "Hong Kong is our preference." Xinhua/Shanghai Daily english.eastday.com