[photopress:wuhan_port.jpg,full,alignright]River port operator CIG Yangtze Ports plans to embark on a $100 million second-phase expansion in central China by the end of this year.
Chairman Edward Chow Kong-fai said after the annual general meeting held in Hong Kong that CIG has an 85% stake in the two-berth Phase I of Wuhan International Terminal Port and is planning to take a 40% stake and develop four berths in Phase II.
The company, spun off from Chow’s China Infrastructure Group, has signed a binding agreement with Wuhan’s provincial government and hopes to obtain approval by the end of this year. After the Phase II expansion is completed in 2010, Wuhan International Terminal’s capacity will increase to 1.2 million TEUs (20-ft equivalent units).
It will be the largest port in western and central China, and will account for 80% of Wuhan’s total throughput.
According to CIG’s annual report Phase I of the terminal moved 107,384 TEUs of goods in 2006, an increase of 82% from 59,098 TEUs in 2005.
Edward Chow Kong-fai said Hong Kong was charging a fee of $200 per TEU compared with Shenzhen, which charges RMB1,000 yuan ($131, and Shanghai, which charges RMB600 ($79.)
He added, ‘Wuhan International Terminal charges less than China’s average of RMB425 ($56) per TEU, so there is still room to increase terminal charges.’
Terminal charges accounted for 75% of the company’s total revenue in 2006, while logistics business accounted for 15%.
Source: The Standard