[Hong Kong, 23 July 2002] There have been recent reports that Hong Kong's port industry is a "sunset industry". Hutchison Port Holdings (HPH) contests this view.

HPH Group Managing Director, John Meredith said, "Hong Kong's port industry has been a pillar of Hong Kong and the Pearl River Delta region since its conception. Kwai Chung possesses a world-class port, with advanced infrastructure, operating in a free market economic environment. Although it is unrealistic to expect double-digit growth, Kwai Chung Port will continue to enjoy growth, albeit at a much slower rate, well into the future."

For the past 30 years, HPH has consistently been committed to developing and advancing the port industry of Hong Kong. Through continuous investment HPH has played a key role in transforming the Port of Hong Kong into the world's busiest port. These efforts continue today.

Current efforts are focused on expediting the border crossing for lorries coming to Kwai Chung Port. HPH fully realises that streamlining the time-consuming, tedious border crossing will dramatically reduce the cost of transporting containers to Hong Kong. In order to circumvent this problem, HPH has taken a lead role by initiating the Pipeline Project.

"The Pipeline Project will give the Kwai Chung Port a new lease on life," remarked John Meredith, Group Managing Director of HPH.

This project is aimed to utilise the latest technologies, such as GPS tracking systems and electronic seals (E-seals), to improve the speed and efficiency of container flow to Hong Kong. More importantly, this will substantially reduce the transportation costs for moving containers through Kwai Chung.

As part of the Pipeline Project, LINE - Logistics Information Network Enterprise has launched its Transport Link service. This system facilitates efficient matching of laden and empty containers between Hong Kong and the mainland. Matching these needs drastically reduce the shippers' cost of moving containers through Hong Kong by over 30 per cent. The Pipeline Project will enhance Kwai Chung's competitiveness. And through innovation the Port of Hong Kong will continue to be a pillar industry.

Notes to Editor:

Hutchison Port Holdings (HPH) is the world's leading port investor, developer and operator with interests in 15 countries throughout Asia, Middle East, Africa, Europe and the Americas. Today, HPH operates a total of 169 berths in 30 ports together with a number of transportation related service companies. With industry recognized core competence in the effective and efficient management and operation of container ports, the HPH Group handled 27 million TEU in 2001.