HONG KONG—Hutchison Whampoa Ltd., parent of the world’s largest container terminal operator, boosted second-half profit from ports 15 percent as surging global trade fueled demand for sea cargo.

The port unit’s earnings before interest and taxes jumped to HK$7.09 billion ($911 million) from HK$6.2 billion a year earlier, according to Bloomberg calculations. Sales rose 14 percent to HK$20.1 billion.

Hutchison Port Holdings Ltd., controlled by billionaire Li Ka-shing, boosted its container volume 12 percent last year, helped by rising shipments of low-cost goods from China to the US and Europe. Trade growth may slow this year amid a weak US housing market and China's attempts to cool its economy.

“Container port volumes will continue to grow in 2008, but at a slower pace than in previous years,” said Merrill Lynch & Co. analyst Christie Ju. “2008 is challenging for many Chinese-related stocks.”

Second-half numbers were derived by subtracting first-half results from full-year earnings announced last week.

The port business accounted for 23 percent of Hutchison Whampoa’s profit last year, the Hong Kong-based company said in a statement last week. The parent also invests in oil and gas, cell-phone networks, drug stores and real estate.

Hutchison Port handled a total of 66.3 million sea-cargo boxes last year. It has interests in 292 berths at 47 ports spread across 24 countries.

Shenzhen, southern China is likely to surpass Hong Kong as the world's third-busiest container port within the next few years, Li said last week. Hong Kong can’t compete with mainland ports because of higher wages and additional trucking costs, he said.

“As a Hong Konger, I want to be good to Hong Kong, but the factories are all in China,” he told reporters in the city.

Profit from Hutchison’s Kwai Tsing terminals in Hong Kong fell 5 percent last year, even as volume rose 9 percent, the company said without elaboration. Its Yantian venture in Shenzhen boosted traffic 13 percent, with profit climbing 11 percent.

Hutchison Port boosted its overall earnings before interest and taxes 13 percent last year to HK$12.8 billion. Sales climbed 15 percent to HK$37.9 billion.

“The port company’s profit will grow steadily in 2008,” said Jonas Kan, an analyst at Daiwa Institute of Research in Hong Kong. “Apart from the ports in China, some small ports overseas will also begin to contribute profit.”

The company plans to invest at least A$200 million ($184 million) in Australia's Brisbane Port, it said in January. It also opened a $244 million expansion at Mexico's Port of Lazaro Cardena in November.

Hutchison Port is 20 percent owned by Singapore-based PSA International Pte., the world's second-largest container-terminal operator.

Hutchison Whampoa shares rose 0.9 percent to HK$73.70 at the close of trading in Hong Kong. The stock has fallen 17 percent this year, compared with a 19 percent drop in the benchmark Hang Seng Index.

China's export growth may slow to 20 percent this year from 26 percent last year, Fan Caiyue, a deputy director at the National Development and Reform Commission's economic research institute, said on January 22. The commission is China's top economic planning agency. (Bloomberg)

Subic Port expects more ship calls

SUBIC BAY FREEPORT—The Subic Bay Metropolitan Authority (SBMA) expects more ships to call at its port, with the scheduled operation of the Freeport’s new container terminal and the opening of the expressway linking special economic zones in Subic, Pampanga and Tarlac.

CLARK FREEPORT—Two multibillion peso logistics projects—a world-class logistics park and a maintenance, repair and overhaul (MRO) facility—will soon rise at the Diosdado Macapagal International Airport (DMIA) upon the signing of agreements this coming April 4.

HONG KONG—Hutchison Whampoa Ltd., parent of the world’s largest container terminal operator, boosted second-half profit from ports 15 percent as surging global trade fueled demand for sea cargo.

MELBOURNE—Ivernia Inc., barred a year ago from exporting 3 percent of the world's mined lead from Western Australia, is preparing 19,000 metric tons of lead concentrate for shipment pending final government approval.

TOKYO—Nippon Yusen K.K.’s unprofitable air-freight unit, Nippon Cargo Airlines Co., said demand from China will help its annual Asian sales from outside Japan surpass domestic revenue for the first time next fiscal year.

SEOUL—Posco Engineering and Construction Co., a unit of South Korea’ ws largest steelmaker, said it won a $112 million order with local rival Samwhan Corp. to build a port terminal in Vietnam.