Residential Properties
Full occupancy has been maintained in the six town houses at Sassoon Road, the three luxury detached houses at Peak Road and the property at Knightsbridge Court in Barker Road.
SHIPPING RELATED SERVICES DIVISION
Profit before extraordinary items of HK$381 million (1984 – HK$274 million) was generated by this division in 1985.
Hongkong International Terminals Group (HIT)
This group comprises Hongkong International Terminals Limited
operator of Terminal 4; HIT (Berth 2)
the largest container haulage contractor in
Limited operator of Terminal 2; Whampoa Marine Terminals Limited operator of marine terminal and warehousing facilities at Hung Hom; and HIT (Transport) Limited
Hong Kong.
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The HIT group handled 860,000 TEUs (20 ft equivalent units) in 1985, a record throughput for the third successive year.
Development of the first phase of the container port expansion the creek reclamation project, which commenced in July, 1984 — is proceeding on schedule with a target completion date of March, 1987. This phase will provide HIT with an additional 11.7 hectares of container marshalling yard. The development also includes provision of a 300 m. general cargo and lighter berth and a new five-lane port road to improve traffic and vehicle access.
In order to maintain a high level of efficiency, HIT made further investments in container handling equipment in 1985, including two quay cranes, 16 tractors, 14 chassis and three specialised container handling forklifts.
In December, 1985, agreement was reached with the Hong Kong Government for the commencement of the second phase of the container port expansion. This phase involves the development of Terminal 6 which, when completed, will comprise a 29-hectare, three-berth container facility adjoining HIT's Terminal 4. Design work is now in progress and the award of the main contract is tentatively scheduled for September, 1986. Completion of this expansion programme, which is targeted for December, 1989, will double the existing capacity of the HIT group to 1.6 million TEUS per annum and provide sufficient facilities to handle the expected growth in Hong Kong's container traffic until the late 1990s.
A condition of the December, 1985, agreement provides for the sale of Terminal 2 to Modern Terminals Limited. This rationalisation of the Kwai Chung container port configuration will enable HIT to operate the combined Terminals 4 and 6 as a fully integrated complex providing a total of seven berths on a 57-hectare facility.
Both Whampoa Marine Terminals Limited and HIT (Transport) Limited continued to benefit from the increased level of container traffic in 1985.
Hutchison Harrison Shipping Limited
Arrangements for the sale of the 90% interest in this company were completed in January, 1986 at a cost of HK$102 million which has been treated as an extraordinary item in the accounts. As a result, we no longer have an interest in the five bulk carriers acquired under 10-year charters. We have also sold the 50% interest in Hutchison Harrison Limited, a ship broking and management venture.
Hongkong United Dockyards Limited
During 1985, there was no improvement in the state of the ship-repair industry and there was a decline in revenue. However, revenue from land based engineering work showed some improvement and this helped to reduce the level of operating losses of this 50% associate. Management will continue to seek new business while, at the same time, minimising costs.
The Hongkong Salvage & Towage Company, Limited
This 50% owned associate had a very successful year with profits showing a substantial improvement on last year.
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HUTCHISON WHAMPOA LIMITED