Phase II of Shanghai's Yangshan Mega-port Project

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A new joint venture company was created by a foreign-led consortium including APM Terminals (APMT) and Hutchison Port Holdings (HPH) to build and operate the Phase II of Shanghai’s Yangshan mega-port project in Shanghai for 50 years. The project was expected to provide Shanghai with another 2.1 million teu annual capacity. The 50-year BOT contract was signed in December 2005 by the foreign companies and Shanghai Municipal government. Under the agreement, HPH, a wholly-owned subsidiary of Hutchison Whampoa limited, had a 32% stake in the joint venture company. APM Terminals, the terminal operating unit of Denmark’s A.P. Moller-Maersk group took up a 32% share in the project. The rest of the consortium members were all state-owned company. Shanghai International Port (Group) Co. Ltd. (SIPG), which was 30% owned by China Merchant Holdings, had 16% of the project and Cosco Pacific and China Shipping group each owned 10%. The total project cost was estimated at US$ 740 million -US$ 870 million, while the register capital of the joint venture company was about US$ 482 million. HPH was committed to invest US$ 154 million (RMB 1.28 billion) for the equity proportion in the venture but no further financing information is public available. Subsequent to the Phase I of Yangshan Deepwater project, Yangshan Phase II terminals was another monumental port project approved by National Development and Reform Commission, PRC. It had a total area of 64 hectares with a quay length of 1,400 meters and a depth alongside of exceeding 15 meters. It comprised of four deep-water berths capable for accommodating 100,000-ton or above container vessels. Phase II was expected to open for operations in December 2006. At that time, Yangshan Island terminal was to be served by a 32 kilometer, six lane bridge, connecting it to the bustling mainland city of Shanghai at the mouth of the Yangtze River.