Hutchison Port to raise HK tariffs to handle mega-ships

Hutchison Port Holdings Trust, the port operator controlled by billionaire Li Ka-shing, is in talks with shipping lines to impose a “moderate” tariff increase at its Hong Kong terminal as it focuses on handling supersized container ships.
Hutchison Port is talking with customers about higher tariffs that would increase the company’s net revenue by 2 percent to 3 percent, Gerry Yim, chief executive officer of the trust, said Monday in Singapore. The raise would probably take effect in the first half of the year, he said.
“We’re asking for a moderate tariff increase to make sure we can handle the mega-vessels for the longer term,” Yim said. “The tariff we want to raise will definitely be able to offset our cost increase, plus a positive contribution to our bottom line.”
Other terminal operators could follow Hutchison Port’s lead on tariffs, Ivor Chow, the company’s chief financial officer, said without elaborating.
Last year, Hutchison Port handled 6 percent more 20-foot containers at its Hong Kong and Shenzhen terminals than it did in 2013. While exports to the U.S. have been growing steadily, demand from Europe remains slow, Yim said.
The trust is adding three more berths at its Shenzhen terminal to better handle the largest vessels, Yim said. That would increase capacity by 2 million to 2.5 million boxes from the current 11.7 million, he said. Kyunghee Park, Bloomberg