Hutchison Port Holdings Trust (HPH Trust) has entered a strategic agreement with Cosco Shipping Ports to jointly manage terminal operation activities in Hong Kong.
The deal will see the combined management of 16 berths located across five terminals, which are currently operated by Hongkong International Terminals (HIT), a part of HPH Trust, COSCO-HIT Terminals (Hong Kong) (CHT), and Asia Container Terminals (ACT).
Located in Hong Kong's major container terminal facility in Kwai Tsing, the combined terminals are expected to enable the most effective use of facilities and personnel.
In addition, efficiency of terminals is expected to improve as one management team will be responsible for the terminals’ daily operations.
The combined management is also anticipated to create additional capacity by adding flexibility in berth and yard planning.
As well as boosting Hong Kong's position in the transhipment activities in the region, the new management is also intended to enable stronger shipping alliances.
Both HPH Trust and Cosco Shipping Ports have noted that the revenue and expenses from the management and operation of the combined terminals would be allocated among the parties according to the respective designed capacity of facilities owned by each party.
Separately, Hutchison Ports has signed a memorandum of understanding (MoU) to develop container terminal facilities at Chornomorsk Port in Ukraine.
Signed with the Government of Ukraine, the deal is scheduled to be finalised by next year.
Image: Hutchison Port Holdings, Cosco Shipping Ports and other representatives sign the deal. Photo: courtesy of Hongkong International Terminals Limited.