Operators Ink Co-Management Deal for Kwai Tsing Terminals
- Business & Finance
COSCO-HIT Terminals (Hong Kong) Limited (CHT), Asia Container Terminals Limited (ACT) and Hongkong International Terminals Limited (HIT) have signed a co-management deal in relation to the operation of the 16 berths across Terminals 4, 6, 7, 8 and 9 of Kwai Tsing, New Territories, Hong Kong.
Taking into account the changing dynamics of the shipping industry with the formation of strategic alliances between shipping lines, the arrangement is expected to create additional capacity by increasing the flexibility in the overall berth and yard planning among the 16 berths across the terminals.
CHT, which owns 2 berths in Terminal 8 East, is held as to 50% by each of COSCO SHIPPING Ports Limited and container port business trust Hutchison Port Holdings Trust (HPHT) through intermediary companies. ACT, which owns 2 berths in Terminal 8 West, is held as to 60% and 40%, respectively by COSCO SHIPPING Ports Limited and HPHT through intermediary companies, while HIT, a wholly-owned subsidiary of HPHT, owns 12 berths in Terminals 4, 6, 7 and 9.
Pursuant to the agreement, signed on December 19, one management team will be responsible for the day-to-day operations and for managing, operating and conducting the business of the container terminal facilities of the terminals in order to improve efficiencies in operation.
The revenue and expenses from the management and operation of the facilities will be allocated among the parties by reference to the respective designed capacity of the facilities owned by each party.
COSCO SHIPPING Ports said that the agreement may be terminated by any party in certain circumstances upon the giving of not less than three months’ written notice.