14.9 C
Hamburg
Monday, June 21, 2021
Home News Covid-19 hits HPH’s H1 performance

Covid-19 hits HPH’s H1 performance

Hutchison Port Holdings Trust (HPH Trust) is expecting volumes to recover in H2 2020 as Chinese manufacturing is normalising after being hit hard by Covid-19 in Q1 2020.

The world’s first publicly traded container port business trust, comprising a portfolio of CK Hutchison Holdings’ terminal assets in China’s Pearl River Delta, announced on 27 July 2020 that net profit fell 17% year-on-year in H1 2020, to HK$679 million (US$87 million) as volumes at its terminals in Hong Kong and China contracted due to Covid-19.

Throughput at Yantian International Container Terminals (YICT), Huizhou International Container Terminals, Hong Kong International Terminals (HIT), COSCO-HIT Terminals (Hong Kong) and Asia Container Terminals, totalled 10.28 million TEU in H1 2020, an 8% year-on-year decline.

HPH Trust said that as the pandemic spread, “City and regional lockdowns and closure of businesses in many countries, including the US and Europe, have led to a sharp deceleration of economic activities.”

With Hong Kong a major regional transhipment hub, and YICT being the premier gateway to the US and Europe, the company suffered a double-digit year-on-year fall in H1 2020.

HPH Trust, which now reports its performance every six months, said the throughput decline in the first quarter was 4% at HIT and 16% at YICT.  However, in the second quarter, the decline was significantly less, at 1% at HIT and 8% at YICT with June in particular, seeing encouraging improvement.

“HPH Trust remains vigilant about the situation and will continue to focus on operational efficiency and cost management, as evidenced by the formation of Hong Kong Seaport Alliance, to increase the competitiveness of our ports,” a trust statement.

Martina Li
Asia Correspondent

Latest Posts

Mitsubishi HC Capital buys CAI International

US-based container lessors CAI International and Beacon Intermodal Leasing have come under the same ownership, after Japanese leasing group Mitsubishi HC Capital acquired CAI...

Hamburg Süd vessel hits ferry pier in Santos

The 11,503TEU container ship, Cap San Antonio, crashed into a ferry pier in the Port of Santos in Brazil on 20 June. The floating...

Ports of Auckland halts automated operations due to software malfunction

An incident in the automated area of the Ports of Auckland (POAL) has forced New Zealand's port to temporarily expand manual operations at the...

MOL towards a greener future

Mitsui OSK Lines has announced the establishment of "MOL Group Environmental Vision 2.1" as a guide to achieve net zero greenhouse gas emissions by...

Evergreen and Kaohsiung Port pilot IoT solutions

Evergreen Marine Corporation is piloting the usage of Internet of Things (IoT) technology with Kaohsiung Port's customs officials. Both sides are aiming to see how...