Page 14 - ar2012

Hutchison Port Holdings Trust Annual Report 2012 12
Letter to
Unitholders
Dear Unitholders,
In its frst full-year as a listed entity,
the Trust cemented its position as the
preferred deep-water port operator in
the PRD, despite a challenging business
environment. Throughput growth at our
deep-water ports stood at 5% in 2012,
outperforming the market and gaining
market share in the face of continuing
economic diffculties in Europe and
the US.
The Trust provided stable and regular
distributions to unitholders in line
with IPO projections, in spite of tough
economic times over the past two years
that were characterised by renewed
setbacks in the Eurozone and a weak
rebound in US economic growth. The
strength of the Trust can be attributed to
a three-pronged strategy that involves
continually improving facilities and
infrastructure, constantly enhancing
throughput mix, and carefully managing
cost and capex.
Maximising value
In 2012, the Trust showed its strength and
commitment to maximising unitholders’
value by becoming the frst entity on
SGX to launch dual currency trading of its
units in both Singapore and US dollars.
This move brought greater fexibility and
convenience to investors.
Expansion
In March 2013, the Trust acquired 100%
interest in ACT, which operates two
berths at Terminal 8 West at Kwai Tsing
Port in Hong Kong, adjacent to the
Trust’s existing facilities. The acquisition
of ACT creates synergies with the Trust’s
other Hong Kong terminals, HIT and
COSCO-HIT. This strategic expansion
of the Trust’s portfolio increases our
handling capacity, overall operational
fexibility and effciency to serve shipping
line consortia which frequently require
service on several mega-vessels at
the same time. It also in turn serves to
enhance the overall competitiveness of
Hong Kong Port as an international hub
port to compete with other ports in
the region.
Change in industry dynamics
The shipping industry is at a turning
point as the economics of international
container shipping come to grips
with an increasingly globalised world
marketplace. Our terminals beneft from
superior infrastructure, natural deep-
water channels and long contiguous
berths, making us the preferred port
operator for mega-vessels in the region.
As cost becomes a main focus, liners
innovate to improve their bottom line by
entering into vessel sharing agreements,
consolidating traffc in larger ports,
deploying mega-vessels, and replacing
old feets with larger and more fuel
effcient new-built vessels that deliver
economies of scale.
Throughput growth at our deep-
water ports stood at 5% in 2012,
outperforming the market and
gaining market share