[Hong Kong - 31 May 2001] Hutchison Port Holdings (HPH), at a signing ceremony held in Kwangyang, Korea, today, announced that a consortium comprising HPH, Hyundai Merchant Marine Co and Hanjin Shipping had finalised an agreement with the Korea Container Terminal Authority (KCTA) for the rights to operate and develop Phase II of Kwangyang Port.

Under the terms of the agreement, the consortium will lease seven berths at Phase II of Kwangyang Port for a 30-year period from the Korean government and will have preferred rights to negotiate with the KCTA to develop the Phase III container facilities.

Speaking at the signing ceremony HPH Group Managing Director Mr John Meredith said, "The Kwangyang Port development project gives our Group a significant opportunity to expand our operations in Northeast Asia. Kwangyang Port has enormous potential and we look forward with great excitement to bringing our international expertise to the project."

"HPH is committed to developing Kwangyang Port into a world-class container facility to serve the growth of Korea's trade volumes and the cargo transport needs of Northeast Asia."

Minister of Maritime Affairs and Fisheries Mr Chung Woo Taik said, "Today's signing ceremony marks a turning point in the history of Korea's port industry and a major accomplishment in our efforts to achieve a dual-port system. Upon the completion of Phase II, Kwangyang Port will have the size and capacity to compete with the Port of Pusan."

Mr Chung added, "It is our hope that after the completion of Phase II, the consortium will take an equally strong interest in the development of Phase III."

Korea Container Terminal Authority President Mr Cho Nam-il commented, "The Korea Container Terminal Authority is extremely pleased to be working with the project consortium to further develop Kwangyang Port into a strategic hub centre for Korea and Northeast Asia."

Kwangyang Port is a natural deep-water port situated on the main trade arteries of Northeast Asia. The Phase II expansion project will be developed on 85 hectares of land and when complete will have a quay length of 1,950 metres and a handling capacity of 1.75 million TEU. The first stage of the Phase II project is scheduled for completion in 2002, with the second stage due to be operational in 2004.

Notes to Editor:

Hutchison Port Holdings (HPH) is an independent port investor, developer and operator with interests in Asia, Africa, Europe and the Americas. Today, HPH operates a total of 159 berths in 27 ports together with a number of transportation related service companies. With industry recognised core competence in the effective and efficient management and operation of container ports, the HPH Group handled over 25.3 million TEU in 2000.