COSCO Pacific’s profits soar 62%

COSCO Pacific’s profits soar 62%    Chinese container terminal and logistics services company COSCO Pacific Ltd. reported a 62 percent jump in net profit in 2005 to $334.9 million from $206.6 million in 2004.
   COSCO Pacific said its disposal of a 17.5 percent equity interest in Shekou Container Terminals Ltd. generated a profit of $61.8 million, while its purchase of a 16.2 percent interest in China International Marine Containers Co. Ltd. contributed $55.6 million to the annual profit.
   The total throughput at COSCO Pacific’s terminals in China, Singapore and Belgium rose 16.2 percent to 26.1 million TEUs, ranking the company fifth among global terminal operators. During the year, COSCO Pacific’s increased its number of container terminal berths from 72 to 100, helping its aggregate annual capacity jump 50.4 percent to 54.9 million TEUs.
   In 2005, the fastest rates of container traffic growth were seen at COSCO Pacific’s terminals on the Bohai rim of northern China; Qingdao, Dalian, Tianjin and Yingkou. These terminals increased their combined throughputs 25.2 percent to 9.4 million TEUs from 7.5 million TEUs in 2004.
   The group’s Pearl River delta terminals, including the Yantian terminal joint venture with Hutchison and other partners, reported a growth of 15.6 percent, reaching an annual throughput of 9.2 million TEUs.
   COSCO Pacific’s Yangtze River delta terminals (Shanghai, Zhangjiagang, Yangzhou and Nanjing) saw volume growth of 6.1 percent to 6.8 million TEUs. It’s joint venture terminal in Singapore, COSCO-PSA Terminal, increased its volume 6.8 percent to 611,013 TEUs.
   In 2004, the company entered the European market after acquiring a 20 percent stake from P&O Ports in the Antwerp Gateway terminal. Last year the Belgium terminal handled 70,084 TEUs.
   The company increased its container leasing fleet by 13.5 percent in 2005 to 1.04 million TEUs, pushed up its world ranking from number four in 2004 to number three in 2005. The unit increased its revenue in 2005 by 7.5 percent to $276.3 million.
   “Looking ahead for 2006, it is expected that the world economy will maintain sustainable and rapid growth. Together with improving logistics for the hinterlands of the Pearl River Delta, the Yangtze River Delta and the Bohai Rim, we view the operating environment as highly positive for COSCO Pacific,” the company said in a statement.
   “The company’s high-growth, high-return strategy for the container terminal business, with throughput driven by organic growth and new investments, is expected to be the key earnings driver in 2006. We project the container leasing business to contribute stable profit growth, with the main demand drivers being new vessels, an increased containerization rate in China, and the replacement of used containers. We view the manufacturing business as providing support for the company’s other businesses.”