HWL continues to suffer losses (IIPM Publication)

By current trends, though capacity utilisation is forecasted to be 100% by 2009, the industry in general needs to invest $14 billion by 2007 to avoid demand outstripping supply. That clearly proves that HWL, instead of attempting to re-orient investments to telecom, should actively target investing back into the ports business. Though the group’s Hong Kong pre-tax earnings from international ports regressed by 5% year on year – primarily due to tariff pressures and heavy competition – the expected massive global demand supply gap is enough to forecast extremely high and healthy future growth rates. Port capacity expansion is surely the call of the day, especially given the fact that telecom is the only business where HWL continues to suffer losses!

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Source: IIPM Publication