Hong Kong conglomerate CK Hutchison (CKH), which operates various container terminals worldwide among its businesses, said on 18 March that net profits for 2020 fell 27% to HK$29 billion (US$3.74 billion).
[s2If is_user_logged_in()]The ports business, which contributed 8% to CKH’s revenue of HK$403.85 billion (US$52.11 billion), saw operating profit fall 26% to HK$6.72 billion (US$867.1 million).
Overall throughput decreased 3% to 83.7 million TEU in 2020, primarily due to supply chain disruption as a result of the Covid-19 pandemic, with lower throughput across major ports in Europe (mainly the UK, Barcelona and Rotterdam), Port Klang (Westports) in Malaysia and Jakarta, as well as lower throughput at Thailand’s Laem Chabang due to intense competition and at Dammam in Saudi Arabia due to the expiry of the group’s concession in September 2020.
The port division’s throughput in H2 2020 increased 16% against the H1 2020. The recovery was seen in throughput volumes across all regions especially in China, Hong Kong, and Europe.
In 2020, CKH’s terminal in Yantian, China, achieved a new monthly throughput record of over 1.46 million TEU. During the year, CKH’s new container terminal in Stockholm’s Norvik Port commenced operations.
CKH chairman Victor Li, son of magnate Li Ka-shing, said, “As market uncertainties are likely to persist for some time given the current outlook, this division will continue to exercise rigorous cost discipline, focus on health and operational safety and maintain a prudent approach to capital expenditures and investments.
Martina Li
Asia Correspondent
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