AS NEWS OF CK Hutchison’s decision to offload the majority of Hutchison Port Holdings’ global network of ports and terminals to a Black Rock/GIP-MSC consortium continues to reverberate around the maritime world DCN sought local reaction to the deal.
HPH first entered the local container stevedoring market with the opening of the then Brisbane Container Terminal – now Hutchison Ports Brisbane at Berths 11 and 12 on Fisherman Island in January 2013. This was followed by Hutchison Ports Sydney – then known as Sydney International Container Terminal – at Port Botany’s Hayes Dock in July 2014.
Although securing a number of regular clients in both ports Hutchison Ports Australia has never been in a position to seriously challenge the former duopoly of Patrick and DP World Australia and sometimes the Port Botany terminal seems to have functioned as more of an overflow facility. Industry sources claim it is unlikely the parent company has ever recovered its initial investment in Australia and accordingly declined to outlay further capital for significant expansion.
Given that Global Infrastructure Partners which, itself was acquired by Black Rock in early 2023, is part of the new consortium and is also a member of the consortium that since 2016 has held the 99-year lease of the Port of Melbourne, is there potential for ACCC concerns? (Until 2013 GIP was also a part owner of the Port of Brisbane leaseholder but sold out at a reported $1+ billion, to a Canadian pension fund.)
After DCN raised the issue with the Commission a spokesperson said: “The ACCC is aware of reports that CK Hutchison Holdings Ltd has reached an in-principal agreement to sell its ports and terminals outside of China/Hong Kong to the Black Rock-TiL Consortium.
“Details of any public review would be posted on our public register.”
ICHCA Australia director Peter Van Duyn said the decision by HPH to sell all of its ports and terminals outside China/Hong Kong to the Black Rock-TiL Consortium (BRTC) could have far reaching consequences for the container stevedoring landscape globally as well as in Australia.
“No doubt shipping lines will be busily ascertaining what this means for their contracts especially as currently COSCO Shipping is very much aligned with HPH.
“However having TIL (Terminal Investment Limited) , which is majority owned by MSC, as the part new owner they might want to review this. In turn, MSC being part owner might want to direct more of their vessels and services their newly acquired facilities,” Mr Van Duyn said.
“Globally HPH has interests in many terminals (part or wholly owned) and in large ports such as Rotterdam, Felixstowe and Thamesport that service the top shipping lines in the world.
“As far as Australia is concerned HPH operates in Port Botany and Brisbane with currently only a relatively small market share and services mainly COSCO vessels. Again MSC might want to have a look at what this means for their services. It is also not known if BRTC might want to divest some of its newly acquired portfolio.
“If so this could be an opportunity for ICTSI (owner of the Victorian International Container Terminal) in Melbourne to acquire the HPH terminals in Brisbane and Sydney so it can offer its clients a fully integrated East Coast service,” Mr Van Duyn said.
“So it will be interesting to see how this plays out both globally and locally.”
DCN invited VICT CEO Bruno Porchietto comment but he declined, saying the news was “not impacting our business in Melbourne in any meaningful way”.
