Shekou Container Terminal

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In November of 1991, British shipping group P&O Ports and Hong Kong conglomerate Swire Pacific each took 25-percent stakes in Shekou Container Terminal (SCT) on the Pearl River Delta for a total of HK$615 million (US$78.8 million). Under the deal, P&O, whose full name is Peninsular and Oriental Steam Navigation Co, was to take over management of the terminal in the Shenzhen special economic zone near Hong Kong. After the deal was completed, Shekou Container Terminals (SCT) was controlled by the state-owned company China Merchants Holding (32.5%), state-owned company COSCO (17.5%), P&O Ports (25%) and Swire Pacific Ltd. (25%). The port had two berths with annual handling capacity of 800,000 20-ft equivalent units (teu). In 1997, SCT embarked on a US$5 million investment in new equipment, including an upgraded computer system, four rubber-tired gantry cranes and a second reach stacker. On May 1, 1998, Modern Terminals, 22% owned by China Merchants Holdings and 19% owned by Swire, took over the management of STC from P&O Ports. In April 2004, the Wharf Group's 55.3%-owned Modern Terminals bought a 7.5% stake in phase one of Shekou Container Terminals from Swire for HK$203.18 million, and another 2.5% from P&O. It also sold 7.48% in phase two of the Shekou Container Terminals project to Swire for HK$128.44 million and another 2.05% to P&O. None None