Qingdao Qianwan Container Terminal Ltd (QQCT)

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P&O Ports and Qingdao Port Authority formed a joint venture company, Qingdao Qianwan Container Terminal Co. Ltd., to develop and operate a new container terminal at Quingdao on the northern coast of China in February of 2000. The Qingdao Qianwan Container Terminal Co. Ltd. received the 30-year operating concession. When fully equipped the container terminal was to have an initial capacity of over 1 million TEUs per annum. Originally, P& O Ports held 49% of the company with the Port Authority retaining the rest. The total initial investment into the company was US$177 million. Agricultural and aquacultural products are a mainstay going through the port, plus peanuts, garlic, basic clothing apparel, arts and crafts from Shangdong, machinery parts and wet goods. In July of 2003, Hong Kong listed port operator and state-owned container-leasing company COSCO Pacific Ltd. formed a consortium with P&O Ports, AP Moller and the Qingdao Port Authority to develop Qianwan Phase III, a US$887 million, 8-berth project that was to regroup the container dock into the largest in China. According to the contract, the Qingdao POrt (Group) Co., Ltd and the three shipping Leadeers, the A.P. Moller Maersk Group of Denmark, P&O of Australia, and the China Ocean Shipping (Group) Company (COSCO) respectively contribute 31%, 20%, 29% and 20%. In 2003, the port handled a total of 140 million tons of cargo, with 4.2 million TEUs, both up by more than 30 percent from 2002. Phase III completion was to allow Qingdao Qianwan to handle 6 million TEUs a year. As of December of 2003, a fourth phase was believed to be in the discussion stage. None None