[8 November 2005, Shenzhen] Hutchison Port Holdings (HPH) Group and Shenzhen Yantian Port Group (YPG) officially signed a joint-venture contract today with a total investment of over RMB10 billion to develop the Yantian Port Expansion Project.
The Expansion Project is a joint investment between the HPH Group and YPG, with each party holding a 65 percent and 35 percent respective stake in the project.
Incorporating an additional 136 hectares with a quay length of 3,297 metres, the Expansion Project will include the construction of six new container berths, capable of accommodating 10,000-plus TEU mega vessels. The Expansion Project was approved by the Central Government in March 2005. The first berth will come on stream in the second half of 2006 and the entire project is due for completion by 2010.
Upon completion, Yantian International Container Terminals (YICT) will realise a total area of 344 hectares with 15 deep-water container berths. The number of quay cranes and rubber-tyred gantry cranes will increase to 71 and 286 respectively.
Since commencing operations in 1994, YICT’s annual throughput has increased expeditiously from 13,000 TEU in 1994 to 6.26 million TEU in 2004, amassing close to 50 percent of Shenzhen’s total throughput. Over the past 12 years, YICT has accrued an accumulative total throughput of 31 million TEU.
YICT’s current 208 hectare site with 9 operational deep-water container berths operates 75 weekly international shipping services round-the-clock. YICT has firmly established itself as South China’s hub port.
At the signing ceremony, Mr. Xu Zongheng, Mayor of Shenzhen City, remarked, “Port and logistics are the pillar industries contributing to Shenzhen’s continued economic development and therefore a top priority of the Shenzhen Municipal Government. Today’s signing ceremony represents a significant step forward in realising the city’s vision of enhancing Shenzhen’s strengths through port development as well as promoting cooperation within the Pan-Pearl River Delta.”
Mr. Li Ka-shing, Chairman of Hutchison Whampoa Limited (HWL), said, “YICT has achieved exponential growth through the close cooperation between the relevant parties concerned.” Commenting on the future, Mr. Li said, “We firmly believe that South China will remain one of the fastest growing regions in the world, where economic development will continue to experience significant rates in growth. This provides Yantian Port with a great opportunity for further development. HWL is willing to work together with the Shenzhen Municipal Government to build Shenzhen Port into a world-class hub, thus ensuring its continued contribution to Shenzhen’s future development.”
The signing ceremony was witnessed by Mr. Li Hongzhong, Party Secretary of Shenzhen, Mr. Canning Fok, Group Managing Director of HWL, and officials from related governmental departments of Shenzhen and port administration departments.