HONG KONG GOVERNMENT OFFERS CONTAINER TERMINAL RIGHTS TO THREE CONSORTIUMS
HONG KONG GOVERNMENT OFFERS CONTAINER TERMINAL RIGHTS
TO THREE CONSORTIUMS
EDISON, N.J., Nov. 11 /PRNewswire/ -- Sea-Land Service, Inc., confirmed that the Hong Kong government has offered development rights for Container Terminal 9 on Tsing Yi jointly to the Tsing Yi Container Terminal Consortium, Modern Terminals Limited (MTL) and Hong Kong International Terminals (HIT), by private treaty.
The Tsing Yi Container Terminal Consortium is comprised of Sea-Land Orient Terminals Ltd. (SLOT), a subsidiary of Sea-Land Service, Inc.; the Jardine Matheson Group of Hong Kong; New World Development Co. Ltd. of Hong Kong; Sun Hung Kai Properties of Hong Kong; the China National Foreign Trade Transportation Corporation and the Manjin Group, a Korean conglomerate with interests in shipping.
Under conditions of the treaty, the groups have been asked to work together to develop a plan to build and finance the four-berth terminal. Once completed, two of the berths would be owned and operated by the Tsing Yi consortium while the other two would be owned and operated by HIT/MTL.
John P. Clancey, Sea-Land's president and chief executive officer, noted: "This decision by the Hong Kong government provides a major opportunity to significantly expand our presence in the burgeoning and critical Central Asia market. Hong Kong has long been the linchpin of our infrastructure in the Pacific, and we are confident that Terminal 9 will enable Sea-Land and the consortium to serve its customers even more extensively. This decision attests to Sea-Land's reputation and proven ability to operate efficiently and meet challenging growth requirements."
Sea-Land's operating expertise and efficiency at its current Hong Kong operations was a centerpiece in the Tsing Yi bid to operate Terminal 9. A Hong Kong government spokesman said the offer was a first step toward increasing competition at the port. He added that increased competition is necessary to improve service standards and give customers more options at what is one of the two busiest ports in the world measured by container throughput.
Negotiations between the government and the prospective grantees will start shortly, the government spokesman said. He added that the terminal is scheduled to begin operation in late 1994.
Sea-Land, the largest American-flag ocean carrier, was the first container company to serve Hong Kong when it began operations there in 1969. In addition to its terminal services business, SLOT holds a 50 percent interest in Asia Terminals Limited, which is the largest and most efficient freight consolidation center in the world.
Sea-Land is a world leader in intermodal freight transportation and related trade services. Sea-Land operates more than 80 container ships and 146,000 containers in U.S. and foreign trade and serves 100 ports in 70 countries and territories around the world.
Sea-Land is a subsidiary of CSX Corporation (NYSE: CSX) of Richmond, Va. CSX is an international transportation company offering a variety of rail, container shipping, truck and barge services.
/CONTACT: Elisabeth Gabrynowicz of CSX, 804-782-6775/
(CSX) CO: Sea-Land Service, Inc. ST: New Jersey IN: MAR SU:
TW -- DC014 -- 9850 11/11/92 15:54 EST