Wuhan Yangluo Container Port

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The Wuhan International Container Transshipment Company Limited (WIT) site is located approximately 25km south of the downtown center of Wuhan, Hubei Province on the northern bank of the Yantze river. WIT, the second port in Wuhan after the government-owned Hanyang port, was being developed in three phases. When complete, the annual capacity was expected to be 400,000 teu, with the first phase starting operations in April of 2004 with a designed annual capacity of 150,000 teu (20-foot equivalent units). In addition to containers the facilty was also capable of handling general cargo. The project was expected to have a significant impact on the ability of local manufacturers to move their goods to the coastal provinces and on to international markets and to facilitate the growth of the Yangluo Economic and Technological Development Zone adjacent to the site. WIT was 56.1% owned by China Infrastructure Group (CIG) Yangtze Ports. CIG was in turn controlled by executive chairman Edward Chow, who had a 63% stake in the company, and state-owned Shui On Construction and Materials with 34%. The balance was held by minority shareholders. Total cost of the first phase of the project was 160 million yuan. In 1998, the IFC agreed to inject US$1.5 million in equity and US$5 million in loans, with the remainder to be funded by the participants. In June 2004, Hong Kong based CIG intended to launch its initial public offering on the Growth Enterprise Market by offering 150 million shares, which it had hoped would raise about US$135.3 million. WIT had planned to spend a portion of the proceeds on raising its stake in WIT to 85% from 56.1% and to finance the construction of the port's second stage. However, CIG decided to put its listing on hold and wait for more favorable circumstances. None None