Alexa
  • Directory of Taiwan

Tianjin Port may miss 2008 growth target

Tianjin Port may miss 2008 growth target

Tianjin Port (Group) Co., the operator of northern China's busiest harbor, may miss its growth target next year as a global economic slowdown damps demand for Chinese-made goods overseas.
"The first half of next year is going to be the most difficult period," Chairman Yu Rumin said in a Sept. 27 interview in the city. "Container traffic related to exports will be hurt the most."
Tianjin may struggle to boost cargo-box volume more than 20 percent as planned because rising job insecurity and a stagnant housing market are curbing demand for new furniture and consumer electronics in the U.S., the world's largest economy. China's exports to the country grew at the slowest pace since 2002 in the first seven months of the year.
Missing the target "wouldn't be a surprise as China's container growth is expected to slow," said Ric Leung, a Hong Kong-based Everbright Securities Co. analyst. "It makes sense for Tianjin to diversify its business by boosting dry-bulk."
The port expects to boost bulk cargo volume 10 percent this year and next, in line with its goals, Yu said. Dry-bulk goods, such as coal and iron ore, account for about a third of the port's throughput.
"Demand for these products is still going to rise based on the need for new infrastructure," Yu said. Iron ore is used to make steel.
Cargo volume may rise about 17 percent this year to 350 million tons, Yu said. Container traffic may increase about 20 percent to 8.5 million boxes.
At least 11 commodity carriers, 12 container ships and eight general-cargo vessels are due to dock at Tianjin within the next month, according to AISLive ship-tracking data on Bloomberg.
Concerns about a slowdown have helped cause Tianjin Port Co., the group's Shanghai-listed unit, to fall 48 percent this year.
The unit, 57 percent owned by Tianjin Port (Group), is likely to receive more assets from its parent, possibly including two logistics centers in the city and a large amount of land, Yu said. The parent sold 4.1 billion yuan (US$599 million) of assets to the unit in April, including facilities for handling cars and coal.
The April deal may help Tianjin Port Co. report "a significant rise" in full-year profit, Yu said. China has encouraged state-controlled companies to sell assets to listed units to boost financial transparency and efficiency levels.
Tianjin Port Co. increased first-half profit 18 percent to 582.7 million yuan. Sales rose 47 percent to 5.75 billion yuan.


Updated : 2021-05-09 07:51 GMT+08:00