CHINA Merchants Holdings International (CMHI) is aiming to become a global terminal operator by seeking opportunities to invest in emerging markets, according to managing director Hu Jianhua.
Dr Hu said the company wants to become a leading world public developer, investor and operator in the future, he told London's Containerisation International.
"Therefore CMHI will try its best to find overseas opportunities to build up its global hub port network. Emerging markets have the potential to increase and they have a big advantage due to potential of market growth, as well as low cost labour," he said.
"Bangladesh is a factory for apparel. Exports have been booming there and we expect cargo to increase there. Vietnam and Pakistan, these are also areas that have not matured and where we are studying opportunities," Dr Hu said.
He conceded China Merchants was not suited to mature, developed markets of Europe and North America: "They have the capability, we don't have an advantage. It's not like developing countries where they don't have the capability and we can build value and use our experience and IT to add value."
Hong Kong-listed China Merchants has invested in the Tin Can Container Terminal in Lagos and construction has started at its South Container Terminal investment in Colombo, where Phase 1 was slated to start operations by the middle of 2014.
"While Tin Can has recorded a financial return to our expectations, Colombo has achieved encouraging progress well ahead of schedule. Both projects have been paving the way for our future investments in the port sector outside China," he said.
But Dr Hu warned that investment out of China was not more important than the company's shareholders, saying, "The return on equity is more important than the network and global market share. CMHI will not sacrifice shareholders' returns to carry out its overseas strategy."
He indicated that the most important aim for CMHI is to enhance competitive capability in China, especially its home port in Shenzhen, which includes Chiwan Container Terminal (CCT) and Shekou Container Terminal (SCT).
