Yim Kong, executive director and managing director of CMPort
China Merchants Port Holdings (CMPort) expects steady growth in the second half of 2022, following a challenging period where growth in mainland China slowed down following pandemic-related lockdowns.
Speaking at the company’s annual general meeting, Yim Kong, executive director and managing director of CMPort, said: “As the pandemic eases, the pressure on the cost of epidemic prevention at the terminals will be reduced and the Pearl River Delta and Yangtze River Delta regions have resumed work and production.”
He noted that the port operator has adopted various refined management measures to manage cost, while adding that the RCEP agreement came into effect at the beginning of the year and the traditional peak shipping season in the second half of the year is coming.
Kong stated: “All the above mentioned favourable factors will create favourable conditions for boosting the CMPort’s operating performance in the second half of the year. Therefore, we maintain our forecast of steady growth of annual operating results unchanged.”
In the first quarter of this year, the company delivered steady growth which then slowed due to the lockdown in Shanghai, pandemic-related measures across China and a reduction in mainland China’s business growth rate.
The group’s container throughput from January to April totalled 43.6m teu while bulk cargo volume maintained steady growth and reached 180m tonnes.
The container business of the West Shenzhen homebase port returned to normal in April and the year-to-date throughput volume of from Shanghai International Port Group (SIPG) is still increasing.
Container throughput from Colombo International Container Terminals (CICT) in Sri Lanka increased by 9%, while bulk cargo volume of Hambantota International Port Group (HIPG) jumped by 14% and HIPG Industrial Park welcomed the entry of the largest local cement manufacturer and the expansion of Ceylon tyre plant.
Regarding the increase in shipping freight rates and port tariffs in 2022, Carol Cheng, general manager of the office of CMPort’s board of directors, stated: “In terms of freight rates, shipping demand has increased significantly since the pandemic and freight rates have increased in multiples compared to before the pandemic.
“With the normalisation of the pandemic, we predict that the freight rates will remain high. Port tariffs are expected to increase on average by medium to high single digits, combined with the overall market conditions and the controllable operating costs such as in epidemic prevention together will have a positive impact on the group’s operating performance.”
The company noted that it intends to share experiences related to 5G, digitalised technology and smart port applications with industry peers.
It is also looking to join hands with related enterprises in Hong Kong to achieve digitalisation transformation and upgrades.
