Chu Kong Shipping Partners with Hacis to Participate in the Marine Cargo Terminal Project at Chek Lap Kok

11th December 2000
Hong Kong

Leading river trade transportation services provider, Chu Kong Shipping development Company Limited ("Chu Kong Shipping") (stock code: 560) today announced its acquisition from its parent company, Chu Kong Shipping Enterprises (Holdings) Co., Ltd. ("CKSE"), of all the beneficial interest in Chu Kong Air-Sea Union Transportation Co., Ltd. ("Air-Sea"). At the same time, Chu Kong Shipping also signed an agreement with Hong Kong Air Cargo Industry Services Limited ("Hacis"), a wholly-owned subsidiary of Hong Kong Air Cargo Terminals Limited ("Hactl") to subscribe for new shares in Air-Sea such that Chu Kong Shipping and Hacis will be interested in 51% and 49% of the issued share capital of Air-Sea respectively ("the Agreement").

The agreement is in line with Chu Kong Shipping's strategy in assisting Hong Kong to become a regional marine cargo hub by strengthening transportation links between Hong Kong and the Pearl River Delta. Air-Sea was awarded a license to operate and manage a Marine Cargo Terminal ("MCT") by the Airport Authority on 1 August 2000. With the signing of the Agreement, Chu Kong Shipping and Hacis will jointly develop the MCT project, providing synergies to each other. In addition to cargo handling at the MCT, the joint venture will also be responsible for local transportation between MCT, Airport Freight Forwarding Centre and the two cargo terminals, Hactl and Asia Air Freight Terminal inside the Hong Kong International Airport.

The MCT is targeted to commence operations at the end of March 2001. Its handling capacity is designed to be 150,000 tonnes of cargo per annum.

The Managing Director of Chu Kong Shipping, Mr. Che Chiqiang said, "It is a pleasure to have Hacis as our strategic partner in this joint venture to develop the MCT project. Hacis's expertise in operation procedures, regulations and methods in the handling of air cargo will be greatly beneficial to the long-term development of MCT and therefore secures our operation in the MCT project, complementing our existing extensive transportation network in the Pearl River Delta. This benefits our primary objective to provide the best "one-stop" cargo transportation services between Hong Kong and the Pearl River Delta and assists us in expanding our core business as a transportation service provider.".

Mr. Mark Ashall, Director of Marketing and Customer Service of Hactl said, "We are very pleased that Hacis will become a shareholder of Air-Sea. For Hong Kong to succeed and maintain its position as the gateway to China, it is important that in addition to the state-of-the-art facilities and handling services that exist at Chek Lap Kok, reliable intermodal services are developed, enabling airlines and agents to streamline the shipping process and reduce overall cycle time to shippers and consignees. We see that the MCT project has an important role to play in this process.".

"We are therefore delighted to be working in partnership with Chu Kong Shipping, which will be able to provide river trade transportation services between the Delta ports and Chek Lap Kok. For our part we will provide advice on cargo handling procedures and the system required to ensure a smooth flow of information to the air cargo community.".

Chu Kong Shipping is principally engaged in river trade transportation services between Hong Kong and ports in the Pearl River Delta, as well as investment in, and management of, river cargo terminals and infrastructure joint ventures in Mainland China. With over 40 years of experience and well-located cargo networks in the Pearl River Delta, it is dedicated to providing its clients with a variety of tailor-made services covering almost every aspect of river trade transportation.