TRANSPORT & LOGISTICS | Staff Reporter, Singapore

HPHT’s dismal February numbers point to deteriorating environment, say analysts

Kwai Tsing terminals posted a two-year low.

Hutchison Port Holdings Trust (HPHT)'s disappointing figures last month are evidence of a crumbling environment, according to a report by OCBC.

In February, Kwai Tsing terminals clocked an 18% YoY fall to 973,000 twenty foot equivalent unit (TEU)—the first time in two years the terminals dropped below 1.6m TEU. Shenzhen throughput volumes also tumbled 13% YoY in February to 1.6m TEU.

Other figures for China also paint a gloomy picture, as February exports and imports dropped 25% and 14% YoY respectively, while both the official and Caixin manufacturing PMI stand below 50.

Moreover, mega-vessel deployment places HPHT in good stead, though risks prevail. In 2016, 53 mega ships are anticipated to enter service, according to Drewry Shipping. While HPHT’s assets look well-positioned to outshine the industry on back of its suitability for mega-vesel deployment, OCBC remains concerned with the ongoing rationalisation of port usage.

Furthermore, Shanghai’s proposal for the liberalisation of cabotage in China could pose a serious threat to Hong Kong’s position as a transshipment hub. The proposal is understood to currently be under review by mainland authorities. 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.