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Friday, April 10, 2009

Dalian postpones box terminal expansion

Dalian: Dalian Port (PDA) Co. Ltd has decided to suspend the expansion of two container terminals due to sluggish foreign trade. Dalian Port managing director Sun Hong told local media that the company's container business had been affected by the international trade slump. The construction of two container berths in Phase II and three berths in Phase III development have been suspended. The terminal currently has an annual production capacity of 5 million teu, which is enough for its business in the next two years. Dalian Port hopes that domestic trade and transit cargo trade, which have steady growth in throughput, will be able to offset the drop in foreign trade cargo. The company's capital expenditure will also be trimmed 36% to about RMB800 million, investing mainly in new oil facilities. In the first quarter of 2009, the oil terminal had better throughput than the same time last year. But the economic slump may drag its full-year performance.
On the box front, Dalian finds itself in a bitter fight with local rivals Tianjin and Qingdao as well as Incheon on the west coast of the Korea. There is a common perception that there has been too much container capacity earmarked for northeast Asia.  [10/04/09]