Summary
China Merchants Port Holdings Company Limited (SEHK: 144) is a major conglomerate based in Hong Kong and is involved in a range of businesses such as port operations, general and bulk cargo transportation, container and shipping business, air cargo, logistics park operations and paint products. China Merchants Port is considered as a Red Chip company as the Hong Kong Stock Exchange listing.[1] The company has port facilities in mainland China and Hong Kong, and the predecessor was founded in 1991.[2] The predecessor of the parent company was established in 1872 and was the preeminent industrial and commercial group in mainland China.[3][4][5] Before changing its name to China Merchants Port Holdings Company Limited, the company was formerly known as China Merchants Holdings (International) Company Limited.[6]
 | |
Native name | 招商局控股港口有限公司 |
|---|---|
| Company type | Partially State-owned enterprise (Red chip) Public company |
| SEHK: 144 | |
| Industry | Shipping and Logistics |
| Founded | 28 May 1991 |
| Headquarters | , |
Area served | People's Republic of China |
Key people | Chairman: Li Xiaopeng |
7,955,100,000 (2018)  | |
| Owner | China Merchants Group (55.4%) |
Number of employees | 9,149 (2018) |
| Parent | China Merchants Group |
| Website | cmport.com.hk |
History edit
On 28 May 1991, the company's predecessor was founded in Hong Kong.
On 16 June 1997, the company adopted the title China Merchants Holdings (International) Company Limited (招商局國際有限公司).
On 15 July 1997, the company was listed in the Hong Kong Stock Exchange.[7]
On 10 August 2016, the company adopted its current title.[8]
Company background edit
China Merchants Port's predecessor was founded in Hong Kong on 28 May 1991, and changed to its present name in 1997. Port facilities are located in Hong Kong and Mainland China, such as Shanghai, Tianjin and Qingdao.[2] However, China Merchants Port was truly founded in 1872 as the first merchant company of the Qing dynasty and has experienced a history that stretches from the Republic of China to the official establishment of the People's Republic of China. Port facilities are located in Hong Kong and Mainland China. Its national port network is spread across the Pearl River Delta, Bohai Economic Zone, Xiamen Bay Economic Zone, Yangtze River Delta and Southwest China. This includes the coastal hub ports of Hong Kong, Shanghai, Qingdao and Xiamen Bay.[9][10]
Besides the operations in Hong Kong and Mainland China, it also operates overseas. Its investments are concentrated in developing countries such as Nigeria and among other African countries, as well as the countries among South Asia, especially in Sri Lanka, the port of Hambantota that located in southern Sri Lanka is one of the biggest foreign investment by China Merchants Port. The company has approximately 130 berths for loading and unloading at wharves and piers worldwide, with a capacity of 60 million containers. It controls more than 30% of the berths in mainland China.[2][11] The company operates through its port operations, bonded logistics business and other businesses. These include container terminal operations, break-bulk terminals, the operation of logistics parks operated by China Merchants Ports and its associates, including port transportation and airport cargo handling, as well as property development and investment, including the construction of modular buildings and the provision of container terminal services. In addition, China Merchants Port is involved in port development and berth operations, as well as tugboat berthing assistance and barge services when ships arrive in port, cargo handling during loading and unloading, and providing ships with shore power and fresh water.[2][1]
China Merchants Port is one of three Chinese enterprises named among the top 10 terminal operators in the world; the other two are Hutchison Port Holdings and COSCO Shipping Ports.[11] In the 2018 Lloyd's list of the top 10 global port operators, China Merchants Port was ranked fifth, as of 2018, they have a network of 34 ports in 18 countries around the world, such as Houston in the US and Newcastle in Australia.[10]
Structure of the company edit
The majority of the shareholders in China Merchants Port are insiders. The insiders held 65.26% of the shares in the company, as the largest shareholder of the company is China Merchants Group, its parent company, accounting for 43% of the total shares, while China Merchants Technology Holdings Co. Ltd. accounting for 21.9% of the shares.[2][6][12] Institutions held 27.87% of the float and 9.68% of the shares. The number of Institutions holding shares is 223.[6]
China Merchants Port has operations in 25 countries, with a network of 41 ports by 2020, including Sri Lanka's Colombo International Container Terminal Limited and Togo's Lomé Container Terminal S.A. The parent company, China Merchants Group, achieved sales of CNY 649.9 billion in 2019. In 2020, the company had total revenue of US$1,147,838,440, with the port business accounting for 93% of the company's revenue and the bonded logistics and other operations accounting for the rest.[12][10][13]
In February 2018, the company completed the sale of its indirectly owned unit, Shenzhen Chiwan Wharf Holdings Limited, which provides logistics, container terminal and port management services and has interests in operations in general and bulk cargo terminals businesses. The expected net proceeds from the sale are HK$3.88 billion (US$496.3 million).[14]
edit
| Shareholders[2] | Shares |
| China Merchants Port Group Co., Ltd. | 43.3% |
| China Merchants Technology Holdings Co. Ltd. | 21.9% |
| BlackRock Fund Advisors | 1.3% |
| The Vanguard Group, Inc. | 1.2% |
| Dimensional Fund Advisors LP | 0.6% |
| Manulife Investment Management (Hong Kong) Ltd. | 0.3% |
| DJE Kapital AG | 0.3% |
| BlackRock Advisors (UK) Ltd. | 0.3% |
| Norges Bank Investment Management | 0.3% |
| CTBC Investments Co., Ltd. | 0.3% |
Top 6 Mutual Fund Holder edit
| Holder[1] | Shares | Out of % | Date Reported |
| Vanguard International Stock Index-Emerging Markets Stk | 20,024,671 | 0.53% | Jan 31, 2022 |
| Vanguard International Stock Index-Total Intl Stock Indx | 18,449,361 | 0.49% | Jan 31, 2022 |
| iShares Global Infrastructure ETF | 16,810,000 | 0.44% | Jan 31, 2022 |
| iShares Core MSCI Emerging Markets ETF | 11,742,270 | 0.31% | Feb 28, 2022 |
| New World Fund, Inc. | 10,308,000 | 0.27% | Jan 31, 2022 |
| DFA Emerging Markets Core Equity Portfolio | 7,902,958 | 0.21% | Jan 31, 2022 |
China Merchants Port's Related Companies edit
| China Merchants Group Ltd. |
| China Merchants International Terminals (Ningbo) Ltd. |
| China Merchants International Terminal (Qingdaoco) Co., Ltd. |
| China Merchants Port Development (Shenzhen) Co., Ltd. |
| China Merchants Hldgs International China Investment Co. Ltd. |
| China Merchants (Luxembourg) SARL |
| China Merchants Holdings (Djibouti) FZE |
| China Merchants Finance Co. Ltd. |
| China Merchants Bonded Logistics Co., Ltd. |
Source:[2]
Company manager edit
Table 1 provides information on the company's major managers, specifying each person's full name and their roles.[2]
| Name | Position |
| Xiu-Feng Wang | Vice Chairman and chief executive officer |
| Xiao-Ping Tu | Chief Financial Officer and Financial Controller |
| Jian-Li Zhao | General Manager-Audit Department |
| Yi-Ming Zhang | Deputy General Manager |
| Kong Yim | Executive Director & Managing Director |
Indexed stock edit
In the quarterly review of Hang Seng Index composition ended on Jun 29 2018, it was announced by Hang Seng Indexes Company that China Merchants Port will be removed from constituent stocks from Sep 10, 2018, and replaced by another. The decision to remove China Merchants Port was due to its turnover volume and market capitalisation failed to meet the minimum requirements.[15]
Foreign Investment edit
China Merchants Port invested in 6 terminals in 2005 and increased to 18 by the end of 2017. However, 2009 is the year they start to make overseas investments. As part of China's "Maritime Silk Road" plan, the company has increased its overseas port facility upgrades in recent years. The sea routes, proposed by Chinese Communist Party leader Xi Jinping, aim to connect China to Europe via Southeast Asia and the Middle East.[2][16] The company has acquired 49% stake in Terminal Link, the combination of Compagnie Maritime d'Affrètement (CMA) and Compagnie Générale Maritime (CGM), as well as the purchase of 90% stock in TCP Participações SA, A, the second largest container terminal in Brazil with a design capacity of 1.5 million TEU, for US$923.7 million. This acquisition in 2017 allowed the company to expand its presence in the Latin America region.[17] Besides, the company also engaged with the Sikan Island Container Terminal located in Nigeria, the Multipurpose Port of Doraleh located in Djibouti, Colombo International Container Terminal Limited and the Hambantota Port project in Sri Lanka in relation to China's Belt and Road Initiative.[9] The company is also helping to fund a US$10 billion Tanzanian port in Bagamoyo, Tanzania, promoted by the Tanzanian government.[2]
Eurofos Terminal edit
Eurofos Terminal is a container terminal in Fos-sur-Mer, France. China Merchants Port acquired a 49% “advantageous stake” in Terminal Link in 2013, which is the subsidiary of CMA CGM, the name of two predecessor companies combined, Compagnie Maritime d'Affrètement (CMA) and Compagnie Générale Maritime (CGM), the world's third-largest container shipping company in France. Meanwhile, the acquisition from Terminal Link made China Merchants port obtain an approximate 25% share from the only Chinese invested French Mediterranean port in France, the Eurofos terminal in Marseille.[18][19]
Malta Freeport Terminal edit
Malta Freeport Terminal is a transit hub located in the heart of the Mediterranean. After the Malta Freeport in Marsaxlokk, Malta's container port was franchised to the French shipping company, CMA CGM, at least until the year 2038. When China Merchants Ports acquired a 49% stake in Terminal Link in 2013, it then obtained an approximate 25% stake in Malta Freeport Terminal while CMA CGM held the rest of the shares (51%).[19]
Port of Colombo edit
The Port of Colombo is the largest port located in the southwestern shores on the Kelani River of Sri Lanka. China Merchants Port has held a groundbreaking ceremony at the Port of Colombo in Sri Lanka in 2014 as the new container terminal has launched there. This is one of the largest foreign investments in the country, with a total value of more than US$500 million.[2]
Port of Hambantota edit
The Hambantota International Port is a port in southern Sri Lanka, is located a few hundred kilometres off the coast of India, on a vital economic and military waterway.[20] Construction and investment in the port have come from China, which first signed a US$1.3 billion agreement for the Hambantota port project in 2007, with financing from China Exim Bank and China Merchants Port, while China Harbour Engineering Corporation (CHEC) is responsible for the construction of the port.[18]
With the Port of Hambantota's expansion, China Merchants Port Holdings has become the major shareholder of the Hambantota Port. Sirisena, a member of the Parliament of Sri Lanka, negotiates with China Merchants Port and sells the government's majority stake in the terminal company. They signed an agreement with The Sri Lanka Port Authority in 2017 in which China Merchants Port leased the Port of Hambantota for operation for 99 years. At the same time, China Merchants Port purchase a 70% stake of the Hambantota Port from Sri Lankan government for $1.1 billion in July 2017, including the 42-hectares artificial island located at the port opening.[18][21][22]
TCP Participações SA edit
TCP Participações SA is a container terminal in Brazil. A quarter of the company's containerised exports and imports depart or arrive in China. In 2017, China Merchants Port agreed to purchase 90% stock in TCP Participações SA for US$935 million and increase its annual container throughput “from 1.5 million TEUs to 2.5 million TEUs”.[23]
China Merchants Port's acquisition of the port business by year edit
| Year[24] | Region | Port | Terminal |
| 2010 | Asia | Vung Tau | Vung Tau Container Terminal |
| 2011 | Asia | Colombo | South Container Terminal of Colombo Port |
| 2010 | Africa | Lagos | Tin-Can Island Container Terminal |
| 2012 | Africa | Lomé | Togo Container Terminal |
| 2013 | Asia | Busan | Busan New Container Terminal |
| 2013 | Europe | Dunkirk | Terminal des Flandres |
| 2013 | Europe | Le Havre | Terminal de France and Terminal Nord |
| 2013 | Europe | Montoir | Terminal du Grand Quest |
| 2013 | Europe | Fos | Eurofos |
| 2013 | Europe | Marsaxlokk | Malta Freeport Terminal |
| 2013 | Europe | Antwerp | Antwerp Gateway |
| 2013 | North America | Houston | Houston Terminal Link |
| 2013 | North America | Miami | South Florida Container Terminal |
| 2013 | Africa | Djibouti | Doraleh Container Terminal |
| 2013 | Africa | Casablanca | Soma port |
| 2013 | Africa | Tangiers | Eurogate Tanger |
| 2013 | Africa | Abidjian | Terra Abidjian |
| 2015 | Europe | Kumport | Kumport Terminal |
| 2017 | Asia | Hambantota | Hambantota International Port Group |
| 2017 | South America | Paranaguá | Terminal de Contêineres de Paranaguá |
| 2018 | Europe | Thessaloniki | Thessaloniki Port Authority |
| 2018 | Oceania | Newcastle | Newcastle |
| 2020 | Asia | Singapore | CMA CGM-PSA Lion Terminal Pte Ltd |
| 2020 | Asia | Laem Chabang | Laem Chabang International Terminal Co Ltd |
| 2020 | Asia | Umm Qasr | CMA CGM Terminal Iraq S.A.S. |
| 2020 | Europe | Odessa | Odessa Terminal Holdco Ltd |
| 2020 | Europe | Rotterdam | Rotterdam World Gateway |
| 2020 | North America | Kingston | Kingston Freeport Terminal Limited |
References edit
- ^ a b c "China Merchants Port Holdings Company Limited (0144.HK) Stock Major Holders - Yahoo Finance". finance.yahoo.com. Retrieved 21 May 2022.
- ^ a b c d e f g h i j k "China Merchants Port Holdings Co., Ltd". Nikkei Asia. Retrieved 7 April 2022.
- ^ China Merchants Holdings International Archived 2012-07-22 at archive.today
- ^ "Global Market Headlines | Breaking Stock Market News". Reuters. Archived from the original on 23 August 2017.
- ^ "Google Finance - Stock Market Prices, Real-time Quotes & Business News".
- ^ a b c "China Merchants Port Holdings Company Limited (0144.HK) Stock Major Holders - Yahoo Finance". finance.yahoo.com. Retrieved 7 May 2022.
- ^ "HKEX Group".
- ^ "Change of Company Name, Stock Short Name and Company website" (PDF). Hkexnews.hk. Retrieved 27 August 2016.
- ^ a b Sorgenfrei, Jürgen (24 September 2018). Port Business. De Gruyter. doi:10.1515/9781547400874. ISBN 978-1-5474-0087-4. S2CID 240206601.
- ^ a b c Chan, Gerald (4 September 2020). China's Maritime Silk Road: Advancing Global Development?. Edward Elgar Publishing. doi:10.4337/9781789907490. ISBN 978-1-78990-749-0. S2CID 226551277.
- ^ a b Wang, Liehui; Zheng, Yuanbo; Ducruet, Cesar; Zhang, Fan (January 2019). "Investment Strategy of Chinese Terminal Operators along the "21st-Century Maritime Silk Road"". Sustainability. 11 (7): 2066. doi:10.3390/su11072066. ISSN 2071-1050.
- ^ a b Jones, Charlie Lyons; Veit, Raphael (2021). "China Merchants". Leaping Across the Ocean: 25–30. JSTOR resrep29681.9.
- ^ Regulation and Finance in the Port Industry: Lessons from Worldwide Experiences. Springer International Publishing. 2020.
- ^ "CMPort to Sell Stake in Chiwan Wharf". World Maritime News. 6 February 2018. Archived from the original on 9 June 2019. Retrieved 8 June 2019.
- ^ Bank of East Asia and China Merchants Port kicked out of benchmark Hang Seng Index, SCMP 2018-08-10. Retrieved 2018-09-23
- ^ Wang, Liehui; Zheng, Yuanbo; Ducruet, Cesar; Zhang, Fan (January 2019). "Investment Strategy of Chinese Terminal Operators along the "21st-Century Maritime Silk Road"". Sustainability. 11 (7): 2066. doi:10.3390/su11072066. ISSN 2071-1050.
- ^ "China Merchants Port Buying Brazil's TCP for USD 923 Mn". World Maritime News. 4 September 2017. Archived from the original on 9 June 2019. Retrieved 8 June 2019.
- ^ a b c Gresh, Geoffrey F. (2020), "China's Maritime Silk Road and the South China Sea", To Rule Eurasia's Waves, Yale University Press, doi:10.12987/yale/9780300234848.001.0001, ISBN 978-0-300-23484-8, S2CID 244638900, retrieved 21 May 2022
- ^ a b Rhode, Grant F. (3 April 2021). "'China's Emergence as a Power in the Mediterranean: Port Diplomacy and Active Engagement'". Diplomacy & Statecraft. 32 (2): 394–415. doi:10.1080/09592296.2021.1913352. ISSN 0959-2296. S2CID 233731614.
- ^ Zhu, Zhiqun (21 December 2018). A Critical Decade. Series on Contemporary China. Vol. 46. WORLD SCIENTIFIC. doi:10.1142/11291. ISBN 978-981-12-0077-9. S2CID 159166169.
- ^ "LC Catalog - No Connections Available". catalog.loc.gov. Retrieved 21 May 2022.
- ^ Zhu, Zhiqun (21 December 2018). A Critical Decade. Series on Contemporary China. Vol. 46. WORLD SCIENTIFIC. doi:10.1142/11291. ISBN 978-981-12-0077-9. S2CID 159166169.
- ^ Rimmer, Peter J. (6 November 2020). China's Global Vision and Actions: Reactions to Belt, Road and Beyond. Edward Elgar Publishing. doi:10.4337/9781788978972. ISBN 978-1-78897-897-2. S2CID 229616132.
- ^ OECD; European Union Intellectual Property Office (22 February 2021). Misuse of Containerized Maritime Shipping in the Global Trade of Counterfeits. Illicit Trade. OECD. doi:10.1787/e39d8939-en. ISBN 978-92-64-32008-6. S2CID 242172971.
External links edit
- China Merchants Holdings International official website
