SINGAPORE - Hutchison Port Holdings Trust (HPH Trust) on Tuesday (Jan 8) said Hongkong International Terminals (HIT), Modern Terminals, Cosco-HIT Terminals (Hong Kong) and Asia Container Terminals (ACT) have entered into a Hong Kong Seaport joint operating alliance agreement for the efficient management and operation of 23 berths across nine terminals of Kwai Tsing container terminals in Hong Kong.
The objective of the alliance is to improve the value proposition of the combined terminal facilities in the context of growing regional competition; maximise efficiencies for the benefit of customers and the industry; and optimise utilisation of the combined facilities and cost synergies, while reducing the environmental impact of such operations in Hong Kong.
The parties will establish several committees and an operations coordination team to govern and manage the facilities. The revenue and costs from the management and operation of the facilities will be shared among the parties at a pre-agreed ratio. The agreement may be terminated in certain circumstances upon the giving of not less than six months' written notice. HPH Trust said: "The trustee-manager believes that the Hong Kong Seaport Alliance will enable the parties to deploy their facilities and resources in a more cost effective and efficient manner.
"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 to better accommodate the need of such shipping alliances.
"This will result in an enhanced service for customers, thereby increasing the overall competitiveness of the combined terminal facilities."