News Release

8th December 1998

Hong Kong’s CT9 Land Grant signed

(December 8, 1998 – Hong Kong) The development of Container Terminal 9 (CT9) – for which the Government Land Grant was signed today – is being jointly undertaken by some of the biggest business conglomerates in Hong Kong. It represents a major vote of confidence on their part in the SAR economy’s future in general, and its continued role as one of the world’s major seaports in particular.

Three companies are co-developing CT9.

Modern Terminals Limited (MTL) is a subsidiary of Wharf (Holdings) Ltd., with China Merchants Holdings (International) Co. Ltd., Swire Pacific Limited, The Hongkong and Shanghai Banking Corporation Ltd, and Jebsen & Co. Ltd. as its other shareholders.

Hongkong International Terminals Limited (HIT) is owned by China Resources Enterprise, Mitsui & Company, Mitsui O.S.K. Lines, with the majority shareholding held by Hutchison Port Holdings, which in turn is part of the Hutchison Whampoa Group.

Asia Container Terminals Limited (ACT) is a new consortium formed by New World Infrastructure Ltd., Sun Hung Kai Properties, Hongkong Land and Sea-Land Orient Terminals Ltd.

The co-developers are to invest over HK$10 billion in the project, including Government works amounting to HK$3 billion for which they will not be reimbursed. These works include the deepening of the Rambler Channel and developing 70 hectares of land complete with roads and other infrastructure improvements outside the CT9 area. The total CT9 land premium of cash and the cost of Government works to be paid for by the co-developers is 33 per cent higher than that of CT8.

“We are delighted to be moving ahead with the development of CT9,” said Mr Gonzaga Li, Chairman of MTL. “It is an important step for the future competitiveness of the Hong Kong Container Port – on which so many in our community directly or indirectly depend for their livelihood.

“HIT is proud to be participating in the development of CT9. The construction of this world class deep water container terminal will further consolidate and strengthen Hong Kong’s position as the leading hub port in Southern China, ” said Mr. Canning Fok, Chairman of HIT.

Mr William Flynn, Chairman of ACT, said, “ACT is confident of Hong Kong’s long-term economy and the growth of its port. With the expertise of our shareholders, ACT, as a new port operator, will contribute to maintaining Kwai Chung as the most competitive hub port in the region supporting and complementing the economic growth of Southern China.”

Located at Tsing Yi, CT9 will consist of six berths, with an alongside depth of -15.5 metres and a terminal area of 68 hectares. It will have a designed annual throughput capacity of 2.6 million twenty-foot equivalent units (TEUs). However, the terminal operators can increase the operating capacity well above 3 million TEUs with productivity improvements. The first berth of CT9 will come on stream in 2001/2002, and the remaining berths will be completed at intervals of 5/6 months. Four of its berths will be allocated to MTL, and the remaining two will go to HIT.

As part of the arrangements for CT9, ACT will pay a pre-agreed share of the development costs in exchange for MTL’s two existing berths at Terminal 8 (West). (Ends)