Hutchison Port Holdings Trust (HPHT) said on Tuesday that its wholly owned subsidiary Hongkong International Terminals (HIT) entered into a joint operation agreement with Modern Terminals Ltd. (MTL), Cosco-HIT Terminals (Hong Kong), or CHT, and Asia Container Terminals (ACT) to collaborate on operations of 23 berths in Hong Kong.
The agreement, called the Hong Kong Seaport Joint Operating Alliance Agreement, is aimed at countering growing regional competition by improving the terminal facilities’ value proposition by improving efficiency and utilization, while lowering costs and reducing the environmental impact, Hutchison Port Holdings Management, the trustee-manager of HPHT, said in a filing to SGX after the market close on Tuesday.
“Taking into account the changing dynamics of the shipping industry, in particular with the formation of strategic alliances between shipping lines and the growing use by lines of larger vessels, the trustee-manager is of the view that the Hong Kong Seaport Alliance will enable better utilisation of the existing capacity by increasing the flexibility in the overall berth and yard planning among the 23 berths,” the filing said.
“This will result in an enhanced service for customers, thereby increasing the overall competitiveness of the combined terminal facilities,” it said.
HIT owns 12 berths in Terminals 4, 6, 7 and 9 North, while MTL, which is a subsidiary of The Wharf (Holdings), owns seven berths in Terminals 1,2, 5, and 9 South, it said.
CHT owns two berths in Terminal 8 East and is effectively held 50:50 between Cosco Shipping Ports Ltd., or CSPL, and HPHT, it said.
ACT owns two berths in Terminal 8 West and is effectively held 60:40 by CSPL and HPHT respectively, it said.