COSCO Shipping Ports Reports Better H1 Results

Maritime Activity Reports, Inc.

August 29, 2017

Photo: COSCO Shipping  Ports Ltd.

Photo: COSCO Shipping Ports Ltd.

 The port terminal operator division of China COSCO Shipping Corp. posted net profits of  US$384.7 million, an increase of  123.7% for FY 2017, compared with the corresponding period last year.

Total throughput of the Group’s container terminals increased by 11.8% to 41,780,867 TEU for the six months ended 30 June 2017 (1H2016: 37,358,210 TEU); of which about 19.3% (1H2016: 21.1%) or 8,046,468 TEU (1H2016: 7,880,362 TEU) were handled by the Group’s subsidiaries; and the remaining 80.7% (1H2016: 78.9%) or 33,734,399 TEU (1H2016: 29,477,848) were handled by the Group’s non-controlling terminals. 
The throughput of the Greater China region accounted for 78.7% (1H2016: 83.0%) of the Group’s total throughput in the first half of 2017, an increase of 6.1% to 32,899,925 TEU compared 31,006,607 TEU in the same period of last year. The throughput in Mainland China (excluding Hong Kong and Taiwan) increased by 4.8% to 30,379,599 TEU (1H2016: 28,986,121 TEU) and accounted for 72.7% of the Group’s total throughput.
The overseas terminals increased total throughput by 39.8% to 8,880,942 TEU for the six months ended 30 June 2017 (1H2016: 6,351,603 TEU) and accounted for 21.3% (1H2016: 17.0%) of the Group’s total. 
The growth was mainly attributed to the inclusion of the throughput of Euromax Terminal Rotterdam B.V. (Euromax Terminal) in Rotterdam to the Group since 1 October 2016, which totalled at 1,349,893 TEU for the six months. Excluding the throughput of Reefer Terminal S.p.A. (Vado Reefer Terminal) which the Group started to include since 1 April 2017 and Euromax Terminal, total throughput from the Group’s overseas terminals grew by 18.4% to 7,517,289 TEU for the period.
The Group is progressing towards its five-year plan by following the three strategies adopted. The acquisition of 51% stake in Noatum Port Holdings, S.L.U. in Spain, which is expected to complete in the second half of the year, adheres to the Group’s three core strategies of “Globalisation”, “Synergies” and “Control”. 
The acquisition will help further extend the Group’s overseas reach, broaden the Group’s terminal network in the Mediterranean and Europe, enable the Group to establish a global strategic focal point and to build a better and well-rounded terminal network to serve shipping alliances with better and extended services, and hub ports with sufficient servicing capability for mega-vessels. 
Most importantly, it is a project in which the Group has a controlling stake after its investment in the Port Khalifa in Abu Dhabi in September 2016; the Group will bring the successful controlling experience at Piraeus Terminal in Greece to Noatum, and unleash the development potentials of the two projects. It is expected that the two projects are poised to have full supports from the container fleet of COSCO Shipping  and the OCEAN Alliance, which conforms to the Group’s strategies adopted.
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