Letter to
Unitholders
“In October 2015, the Trust’s
cumulative throughput in Hong
Kong reached 200 million TEU
– the result of hard work, a
collaborative relationship with
local industry and our reputation
for speed, reliability and efficient
terminal management.”
OPTIMISING
FOR THE FUTURE
CHARTING NEW GROWTH IN 2015
The Trust recorded a year of steady progress and growth, forging
ahead with a strategy to expand, enhance and optimise its assets.
With the state of the global economy holding steady in 2015, albeit
tinged with uncertainty in some markets, our overall throughput
remained relatively consistent with past years. This enabled us
to continue as one of the leading port operators in the world.
During the year, we pressed on with our berth expansion plans
and purchased new equipment to ensure that we remain at the
forefront of technology and stepped up our eorts to optimise our
operations for the future.
Economic developments in the U.S. and Europe delivered mixed
messages during the year. The U.S. market started strong, with
consumer spending increasing by 3.4% in 2015 after advancing
4.2% in 2014 and unemployment rates dropping from 5.6% in
December 2014 to 5.0% in December 2015. The U.S. Federal
Reserve also decided to raise interest rates for the first time since
late 2008, showing confidence in the U.S. economic recovery.
However, towards the end of 2015, the increase in outbound
cargoes to the U.S. narrowed, as high inventory levels impacted
shipments during the quarter.
Outbound cargoes to Europe remained soft in the first half of
the year, reflecting a weak euro and fragile customer sentiment.
However, in the last quarter of 2015, the decline in exports to
Europe narrowed and stabilised.
The devaluation of the Renminbi added another layer of
uncertainty to the market. While a weaker Renminbi is believed to
be beneficial to global trade in the medium term, it nevertheless
adds trade volatility in the short-term as buyers delay buying
decisions to reduce exposures to currency fluctuation.
Despite the challenges in the global economy, HPH Trust managed
to maintain a healthy level of DPU to Unitholders, by increasing
taris and controlling costs eectively. These measures enabled the
Trust to end the year on a strong note with solid full year results.
Full year throughput across our deep-water ports in 2015
remained stable, at only 1% below 2014’s numbers. We retained
our competitive edge, reinforced our position of strength and
outperformed the overall market – further proof of our resilience
and the quality of our assets.
In the last quarter of 2015, we received approximately HK$347.2
million from the realisation of our investment when HPH divested
its interests in Zhuhai International Container Terminals (Jiuzhou)
Limited, one of the river ports in which the Trust holds economic
benefits. We received our share of the consideration from HPH
for cessation of the said benefits. Not only did we recover the cost
OPTIMISING FOR THE FUTURE
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