News Release

24th February 2003

OnePort to Strengthen Hong Kong’s Competitive Edge


(Hong Kong, 24th February 2003) Today, Hongkong International Terminals Limited (HIT), Modern Terminals Limited (Modern Terminals) and COSCO-HIT Terminals (Hong Kong) Limited (CHT) announced the formation of a new joint venture company – OnePort Limited (OnePort).

OnePort’s mission is to improve the efficiency of the business processes at the Port of Hong Kong by providing the trade and transportation community with value-added services on an open, secure and neutral platform for electronic information exchange between all port users. In this way, OnePort seeks to strengthen Hong Kong’s position as Southern China’s logistics hub.

The initial shareholding of OnePort is HIT 50%, Modern Terminals 40% and CHT 10%. Collectively OnePort’s founding shareholders handle 90% of Kwai Chung’s container volume. OnePort has a continuing dialogue with CSXWT which has decided not to invest in OnePort, however, it will cooperate to enable linkage between systems for the benefit of the broader port community.

Eric Ip, Managing Director of HIT, said “Hong Kong’s competitive advantage has long been its capacity to offer time sensitive value-added services. The formation of OnePort is a strategically significant initiative which will consolidate Hong Kong’s long term future as the region’s logistics hub. This will be accomplished as OnePort further enhances the cost effectiveness and supply chain efficiency in Hong Kong.”

Erik Bogh Christensen, Modern Terminals’ Managing Director added, “OnePort’s mission is closely aligned with the goals of the Government’s Logistics Council initiatives. OnePort’s collaboration with the trade and transportation community will create value added services for the community and tangible competitive advantage for Hong Kong. Processes will be streamlined, time and money will be saved.”

Hai Chi Yuet, General Manager of CHT, said, “Currently many processes in the logistics chain are paper-based, requiring the physical movement of documents and multiple entry of the same data into different documents. OnePort will offer services allowing data to be seamlessly passed electronically from one process to the next, thus improving productivity and saving costs for the entire community.”

The OnePort team has been working with members of the trade and transportation community to define the needs of the community and to develop solutions to address these needs. Accordingly OnePort expects to have an immediate impact from company formation to product delivery. Moreover, all members of the Hong Kong Container Terminal Operators Association (HKCTOA) support OnePort’s objectives and have indicated their interests in participating in OnePort as users.

Among those to benefit from OnePort’s services will be ocean carriers, shippers, consignees, freight forwarders, third party logistic providers, trucking companies and terminal operators.

In particular extensive consultation with shipping lines indicates the open and neutral nature of OnePort complements the current shipping line portal initiatives.

OnePort’s initial services will be Advanced Customs Documents Services to be launched in March 2003, with Paperless Container Exchange Services, Haulier Services and Shipping Document Services to be operational within the third quarter of 2003. Attached to this press release is a brief summary of OnePort’s initial services and benefits.

In addition, OnePort will facilitate users to fully comply with the US Customs security requirements, such as the 24-hour Advance Cargo Manifest implemented under the Container Security Initiative (CSI). It will also support relevant industry programs including the Smart and Secure Tradelanes (SST). SST is a significant global initiative led by a host of industry partners including Hutchison Port Holdings to ensure marine cargo security through the deployment of automated tracking and detection technology.

OnePort would also like to announce an alliance with Tradelink Electronic Commerce Limited (Tradelink) that enables OnePort’s users to easily complete official Government documentation (e.g. import and export trade declarations) in conjunction with Tradelink. As part of the alliance Tradelink will subscribe for 10% of the share capital of OnePort. Tradelink also has an option to subscribe for a further 5%.