China Merchants Port
| Company type | Public company |
|---|---|
| Industry | Port management, cargo transport, container shipping, air freight, logistics park administration, manufacturing |
| Predecessor | China Merchants Holdings (International) Company Limited |
| Founded | May 28, 1991 in Hong Kong |
| Headquarters | Hong Kong , China |
Area served | Mainland China, Hong Kong, Nigeria, Sri Lanka, Togo, Brazil, United States, Australia, Tanzania and others |
Key people | Xiu-Feng Wang (Vice Chairman and CEO), Xiao-Ping Tu (CFO), Jian-Li Zhao (GM of Audit Department), Yi-Ming Zhang (Deputy GM), Kong Yim (Executive Director and MD) |
| Products | Port management, bonded logistics services, container and break-bulk terminal administration, logistics park development, port transportation solutions, airport cargo handling, property development including modular construction projects, container terminal operations |
| Owner | China Merchants Group (55.4%) |
| Parent | China Merchants Group |
China Merchants Port Holdings Company Limited () is a diversified conglomerate based in Hong Kong, specializing in port management, cargo transport, container shipping, air freight, logistics park administration, and manufacturing of paint products. Recognized as a Red Chip entity on the Hong Kong Stock Exchange, the company operates numerous port facilities throughout mainland China and Hong Kong. Established in 1991, its parent organization has roots dating back to 1872 as a prominent industrial and commercial enterprise in mainland China. Previously named China Merchants Holdings (International) Company Limited, it is predominantly owned (55.4%) by China Merchants Group.
History
The predecessor to the current company was established in Hong Kong on 28 May 1991. It was renamed China Merchants Holdings (International) Company Limited () on 16 June 1997. The firm became publicly listed on the Hong Kong Stock Exchange on 15 July 1997. On 10 August 2016, it adopted its present corporate identity.
Company background
Tracing its lineage back to 1872 as the inaugural merchant enterprise of the Qing dynasty, China Merchants Port has evolved through the Republic of China period into its current form under the People's Republic of China. Its extensive port operations cover both Hong Kong and Mainland China, including strategic hubs such as Shanghai, Tianjin, Qingdao, and Xiamen Bay. The company’s network encompasses vital economic regions including the Pearl River Delta, Bohai Economic Zone, Yangtze River Delta, and Southwest China.
Internationally, the company holds major stakes in emerging markets like Nigeria and Sri Lanka, with a significant presence at Hambantota port in southern Sri Lanka—one of its largest overseas investments. Globally, China Merchants Port controls around 130 berths with an annual container throughput capacity of 60 million TEUs, commanding over 30% of berth facilities within mainland China.
Its business operations span port management, bonded logistics services, container and break-bulk terminal administration, logistics park development, port transportation solutions, airport cargo handling, property development including modular construction projects, and container terminal operations. Additional offerings include port infrastructure development, berth management, tugboat assistance, barge operations, cargo handling during loading and unloading processes, as well as supplying shore power and fresh water to docked vessels.
China Merchants Port ranks among the top three Chinese terminal operators worldwide alongside Hutchison Port Holdings and COSCO Shipping Ports. According to Lloyd’s 2018 ranking of global port operators, it placed fifth globally with a portfolio comprising 34 ports across 18 countries, including facilities such as Houston (United States) and Newcastle (Australia).
Structure of the company
The majority ownership of China Merchants Port lies with insiders holding 65.26% of shares. The principal shareholder is its parent entity, China Merchants Group, which holds a 43% stake. Following this is China Merchants Technology Holdings Co. Ltd., owning 21.9%. Institutional investors possess 27.87% of the freely traded shares and account for 9.68% of total equity distributed among 223 institutions.
By the year 2020, China Merchants Port had expanded operations across 25 countries managing a network of 41 ports including Sri Lanka’s Colombo International Container Terminal and Togo’s Lomé Container Terminal. The parent company reported revenues amounting to CNY 649.9 billion in 2019. In 2020 alone, China Merchants Port generated US$1.15 billion in revenue with port operations contributing approximately 93%, while bonded logistics and other services comprised the remaining portion.
In February 2018, China Merchants Port divested its interest in Shenzhen Chiwan Wharf Holdings Limited—a subsidiary engaged in logistics services and container terminal management—for HK$3.88 billion (US$496.3 million), thereby refining its focus on core port-related activities.
| Shareholder | Percentage of 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% |
Leading Mutual Fund Investors
| Fund Name | Number of Shares | Share Percentage | Reporting Date |
|---|---|---|---|
| Vanguard International Stock Index-Emerging Markets Stk | 20,024,671 | 0.53% | January 31, 2022 |
| Vanguard International Stock Index-Total Intl Stock Indx | 18,449,361 | 0.49% | January 31, 2022 |
| iShares Global Infrastructure ETF | 16,810,000 | 0.44% | January 31, 2022 |
| iShares Core MSCI Emerging Markets ETF | 11,742,270 | 0.31% | February 28, 2022 |
| New World Fund, Inc. | 10,308,000 | 0.27% | January 31, 2022 |
| DFA Emerging Markets Core Equity Portfolio | 7,902,958 | 0.21% | January 31, 2022 |
Affiliates of China Merchants Port
|
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. |
} Executive Leadership
Status in Stock IndexesDuring the quarterly review in June 2018, Hang Seng Indexes Company declared that China Merchants Port would be excluded from the Hang Seng Index starting September 10, 2018. This decision was based on the company not meeting the required turnover and market capitalization criteria. Portfolio of Port AssetsColombo Sri Lanka Port of Colombo — Hambantota Sri Lanka Hambantota International Port — Hong Kong China Port of Hong Kong (CMCS) — Lomé Togo Port of Lomé (Lomé Container Terminal) — Paranaguá Brazil Port of Paranaguá (Terminal de Contêineres de Paranaguá) — Shantou China Port of Shantou 60% Shenzhen China Port of Shenzhen (Chiwan container terminal) — Shenzhen China Port of Shenzhen (Shekou container terminal) — Shenzhen China Port of Shenzhen (Haixing port development) — Shenzhen China Port of Shenzhen (Zhaogang) — Xiamen China Zhangzhou China Merchants Port 60% Zhanjiang China Port of Zhanjiang 58.35%
China Merchants Port international terminal investmentsChina Merchants Port has strategically invested in several prominent overseas terminals that support China's Belt and Road Initiative. These include the Multipurpose Port of Colombo, Colombo International Container Terminal Limited, and the Hambantota Port located in Sri Lanka, along with the Lomé Container Terminal in Togo. Additionally, the firm is backing a substantial US$10 billion port development project in Bagamoyo, Tanzania, with endorsement from the Tanzanian government. In 2017, China Merchants Port expanded its presence in Latin America by purchasing a 90% ownership interest in TCP Participações SA, Brazil’s second-largest container terminal with a capacity of 1.5 million TEUs, for US$923.7 million. Port of ColomboSituated on the southwestern bank of the Kelani River, the Port of Colombo stands as Sri Lanka’s largest port. In 2014, China Merchants Port invested over US$500 million to inaugurate a new container terminal, marking one of the most significant foreign investments in the country. Port of HambantotaThe Hambantota International Port, positioned near vital shipping lanes off India’s coast, attracted major Chinese investment beginning with a US$1.3 billion deal in 2007. Funding was provided by China Exim Bank and China Merchants Port, while construction was undertaken by China Harbour Engineering Corporation (CHEC). Following negotiations with the Sri Lankan government, China Merchants Port became the principal shareholder by acquiring a 70% interest for $1.1 billion in July 2017, alongside securing a 99-year operational lease for the port. This agreement also included control over a 42-hectare artificial island at the port’s entrance. The infusion of capital strengthened Sri Lanka’s foreign currency reserves and assisted in repaying debts owed to non-Chinese creditors. Lomé Container TerminalThe Lomé Container Terminal in Togo operates under a joint venture equally owned by China Merchants Port and Terminal Investment Limited. Construction commenced in 2012, with commercial operations starting on October 23, 2014. Terminal de Contêineres de ParanaguáLocated within Brazil’s Port of Paranaguá, this container terminal plays a crucial role in trade with China, representing around 25% of its containerized imports and exports. In 2017, China Merchants Port acquired a controlling 90% stake in TCP Participações SA for US$935 million, aiming to boost annual container throughput from 1.5 million to 2.5 million TEUs. Terminal Link partnershipIn line with China's "21st Century Maritime Silk Road" strategy to link China with Europe through Southeast Asia and the Middle East, China Merchants Port secured a 49% equity share in Terminal Link. The remaining majority stake of 51% is held by CMA CGM, formed from the merger of Compagnie Maritime d'Affrètement and Compagnie Générale Maritime.
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