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Cosco Shipping Ports has reported a 15% dip in 2016 profits on slow trade growth, and the performance of its Chinese ports, but the Piraeus port's volume growth has gained it a star rating.

 

At the beginning of 2017, there were 158 berths under the group’s operating container terminals and the total annual handling capacity was 97.25m teu. There were 20 bulk berths in operation, with a total annual handling capacity of 49.95m tons.

During 2016, total throughput of the group’s container terminals increased 5.1% y-o-y to 95,071,922teu of which, 15,735,175teu, up from 15,156,669teu, were handled by the group's subsidiaries, accounting for 16.6%, down a fraction, while 79,336,747teu, up a fraction, were handled by its non-subsidiaries. Throughput of the Greater China region accounted for 85.7% of the group’s total, 81.489m teu, up 1.2% on 2015.

In 2016, overseas business accounted for 14.3% up from 11% in the previous year reaching 13,582,982teu, a 36.8% y-o-y increase, mainly attributable to the fact Kumport Terminal in Turkey, BPT in Korea and Euromax Terminal in Rotterdam began to contribute, with a combined throughput attributable to these of 3,403,798teu in 2016. Excluding the cargo volume of these three, the overseas throughput of the group increased 2.5% to 10,179,184teu in 2016, with the Piraeus terminal increasing its throughput 14.4% y-o-y to 3.471m teu from 2015.

The company said "it is one of the key strategies of the group to accelerate the expansion of its global terminals footprint". It said: "With the formal creation of new networks following the establishment of strategic alliances among shipping companies, these shipping alliances now conduct business on a very large scale. To meet the business needs of the large shipping alliances and accommodate the development of their shipping routes, terminal operators therefore need more comprehensive global terminal networks with extensive coverage, if they are to maximise their market share."

In this regard, during the year, the Cosco Shipping Ports made three overseas acquisitions, entered into agreements with Singapore's PSA in respect of collaboration of large-scale container berths and also entered into a formal collaboration with Hutchison Port Holdings Trust for the efficient co-management and operation of berths at container terminals at Kwai Tsing in Hong Kong.

Filed: 2017-03-29