HPH Trust 2016 volumes slide 6pc as net profit dips 2pc

Time: 2017-02-13 13:45
HONG Kong and south China-focused container terminal operator Hutchison Port Holdings Trust (HPH Trust) saw throughput at its ports fall 6 per cent in 2016 from the year before brought about by a combination of lower transshipment cargoes and weaker intra-Asia trade.
Volumes at Yantian International Container Terminals (YICT) fell 4 per cent to 11.7 million TEU from 12.2 million TEU while at its Hong Kong terminals of Hong Kong International Terminals (HIT), COSCO-HIT and Asia Container Terminals (ACT) combined volume fell 8 per cent from 11.8 million TEU to 10.8 million TEU.
Revenue and other income in 2016 fell 6 per cent to HKD11.91 billion (US$1.5 billion) while net profit was just 2 per cent lower at HKD1.71 billion compared to HKD1.74 billion previously, the UK's Seatrade Maritime News reported.
HPH Trust said that although outbound cargoes to the US and EU gained momentum during the year, with more rapid growth in the fourth quarter, YICT's throughput in 2016 declined as a result of a decrease in transshipment cargoes and empties, while HIT's throughput suffered as a result of weaker Intra-Asia and transshipment cargoes.
Looking ahead, HPH Trust noted the trend towards mega-vessels and larger alliances and the resultant need to achieve economies of scale. It added that with it is well positioned to cater to these needs with its natural deepwater channels and unparalleled mega-vessel handling capabilities.
The port operator pointed out that its signed co-management arrangement for 16 berths across Terminals 4,6, 7, 8 and 9 in Hong Kong's main container complex at Kwai Tsing is expected to deliver cost and operational synergies as a result of a more efficient use of the facilities and manpower resources.
In addition, the acquisition of a bigger stake in Huizhou International Container Terminals (HICT) last year is also expected to provide additional handling capacity and generate operational synergies with YICT through sharing of resources and better utilisation of port and related facilities in 2017, it added.
However, "given the uncertainty around global trade outlook, management remains cautious on the expected cargo volume for 2017 and will continue to focus on better cost control through improvements in productivity and efficiency," HPH Trust concluded.
Contact:  Aster Chen
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