Hutchison acquires container terminal from DP World
March 28, 2013 Category Logistics, Ports & sea transport
Hutchison Port Holdings Trust acquired Asia Container Terminal from DP World and a unit of PSA International for HKD3.2 billion in cash. The purchase will help Hutchison Port boost capacity at Hong Kong after container volumes gained in the past two years, according to Karen Li, Analyst at JPMorgan Chase & Co. DP World is selling its assets in the city as it seeks funds needed for expansion in other markets and shore up its capital. Li Ka-Shing’s Hutchison Whampoa, the world’s second-biggest container port operator, owns 28% of Hutchison Port Holdings. Hutchison Port handled 22.9 million TEU last year at its facilities in Hong Kong and Shenzhen, 5% more than a year earlier. DP World, the world’s third-largest container port operator, sold a 55.2% stake in Asia Container Terminals to Hutchison Port for USD279 million. It also offloaded 75% of its stake in CSX World Terminals Hong Kong and ATL Logistics Center Hong Kong to Goodman Hong Kong Logistics Fund for USD463 million. DP World said it will form a strategic partnership with Goodman Hong Kong to manage Kwai Chung Container Terminal and the ATL Logistics Center, and will continue to manage port operations with completion of the transaction expected at the end of the first half. DP World said it expects to make a net capital gain of USD151 million from the transactions, the Shanghai Daily reports. The deal will enable Hutchison Port Holdings to combine operations at CT8 (West) and CT8 (East), which it already owns through Cosco-HIT. It also agreed to pay HKD750 million to repay existing debt owed by the ACT Holdings group to the affiliates of DP World and PSA. The company is financing the deal from a HKD4 billion term loan agreement. CT8 West has two container berths totaling 740 meters that handled 1 million TEU last year against total handling capacity of 1.4 million TEU. Cosco-HIT’s CT8 East has two berths with a total quay length of 640 m, with a further sea frontage of 448 m for barges.
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