Choi at DBS has a "hold" rating on Cosco Pacific shares and a "buy" recommendation on China Merchants Holdings (International) Co, which holds 30 percent of Shanghai International Port.
The second phase of Yangshan will have four berths with a quay length of 1,400 metres and will be capable of handling some 2.1 million 20-foot containers annually for 50 years starting in December 2006. Each of the five companies will contribute to the venture based on their shareholdings, Hutchison said.
The first phase of Yangshan, which opened on December 10, comprises five berths with an annual capacity of about 3 million boxes shipped between Asia and Europe.
Shanghai's container cargo handling capacity will double to 30 million boxes by 2010.
The city was the world's third-busiest harbor in 2004, handling 14.6 million boxes at its four container terminals. In the first 11 months of 2005, the port processed 16.52 million boxes, 25 percent more than in the same period last year.
To attract shipping lines from Hong Kong and South Korea's Busan, Yangshan may cut transshipment charges by 50 percent. Vessels calling at the port will be given special customs clearance before they dock and a special tax-free zone has been set up at the harbor, according to Xinhua on December 10.
In September last year Hutchison formed a 4 billion yuan venture under an equal partnership with Shanghai International Port at Shanghai's Waigaoqiao harbour to operate four berths.
Hutchison Whampoa Limited (HWL) is a leading international corporation committed to innovation and technology with businesses spanning the globe.
Ministry of Commerce of the People's Republic of China
marketing@alchempro.com
