Container terminal operator Modern Terminals Limited today (18 December 2006) announced that it has reached an agreement with China Merchants Holdings (International) (CMHI) Company Limited under which the two companies will rationalize and consolidate ownership of various interests in Shekou Container Terminals (SCT) Phases 1, 2 and 3. This is in alignment with Modern Terminals’ business development strategy in Pearl River Delta.

It was also agreed that Swire and P&O would dispose their respective shares in SCT Phases 1 and 2. Modern Terminals, currently holding approximately 10-percent interest in both SCT Phases 1 and 2, and CMHI will form a new joint venture company to be known as Mega SCT, into which both parties will inject their interests in all three phrases of SCT. China Merchants will initially have a 70-percent shareholding and Modern Terminals a 30-percent shareholding in Mega SCT.

Modern Terminals’ Managing Director, Mr. Sean Kelly, commented that the consolidation of SCT’s ownership is a positive move that will facilitate the operational efficiency and synergy between the various elements of SCT.

“The agreement will also help strengthen Modern Terminals’ position in the Western Shenzhen area. It is an example of our business development strategy in the Pearl River Delta, which is to take advantage of every opportunity to work together with other major players in the course of steadily expanding the scope of our business,” he added.

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