Industry News
‘Blockbuster’ Felixstowe port sale set to complete
UKACC members dig deep
Over 260 people related to the air cargo industry gathered on 1 March for the annual UKACC (United Kingdom Air Cargo Club) Gala Ball. David Stroud, BIFA’s policy advisor for air cargo, was this year’s chairman and presided over this prestigious event at the Royal Garden Hotel, Kensington. Each year the chairman chooses a charity to support, and with David’s mother living with vascular dementia, selecting the Alzheimer’s Society was an easy choice. UKACC holds events throughout the year, culminating in the Gala Ball. This year’s Ball raised over £7,000 in raffle and auction funds alone. The industry, including many BIFA Members, always generously supports UKACC events, and this year was no different. For further information, visit https://www.ukacc2000.co.uk
There was a signi fi cant amount of news in the trade and national press in early March about Hutchison reaching a preliminary agreement to sell a signi fi cant number of its port terminal businesses – even the usually reserved Lloyd’s List referred to it as a “blockbuster deal”. A consortium, comprising shipping line MSC’s Terminal Investment Limited (Til) arm and US investment fund BlackRock-Global Investment Partners, is to acquire an 80% stake in a clutch of 43 ports worldwide from Hong Kong’s CK Hutchison, including Felixstowe, the UK’s main container hub. The $22.8 billion deal covers CK Hutchison’s entire 80% stake in Hutchison Port Holdings, including ports and terminals in 23 countries worldwide. In the UK, the ports of Felixstowe, Harwich and Thamesport are included in the deal, along with Hutchison’s major terminal operations in Europe, including Rotterdam. Also, it has been announced that PSA is seeking to sell its 20% shareholding in Hutchison Port Holdings. Much of the news has focused on the politics of the sale of CK Hutchison’s assets in the Panama Canal.
is a carrier that operates independently of any shipping alliance and this takeover significantly strengthens its terminal business both globally and in the UK. Local business leaders seem to have given the takeover a cautious welcome, describing it as having a “neutral to positive impact”. However, it does mean that important infrastructure upgrades to the Ely/Haughley rail junctions and strategic roads network become ever more important. Diego Aponte, president of the MSC Group, said: “We have a very high regard toward the Hutchison Ports management team, and if this transaction closes, we look forward to welcoming them into our larger family.” Since the multi-billion-dollar deal was initially announced, two key Chinese agencies have issued statements in quick succession via key political channels, which are highly critical of the deal. While both commentary articles, originally published in a pro- Beijing newspaper in Hong Kong, they include comments of a political nature and these have intensified speculation that the transaction could flounder due to resistance from the Chinese government.
Under the terms of the preliminary deal, the Black Rock-TiL Consortium (BRTC) will acquire a 90% stake in Panama Ports Company (PPC) including the ports of Balboa and Cristobal. PPC had been under pressure from President Trump who has claimed that Hutchison ownership of the ports gives control of the canal to China and had threatened to seize it, although a Hutchison spokesperson denied that the sale was due to political pressure. Hutchison Port Holdings’ 17 port units in Hong Kong and the Chinese mainland are not included in the sale, which would probably have been politically unacceptable to Beijing. From BIFA Members’ viewpoint, what does this change in ownership mean for the UK ports being sold? MSC
David Stroud alongside Soya Cutts of the Alzheimer’s Society addressing the audience.
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