Shanghai Port Reports 2007 Net Income of $493 Million

Shanghai International Port (Group) Co., operator of the world's second-busiest container harbor, has reported 3.6 billion yuan ($494 million) in 2007 net income.

Sales reached 16.3 billion yuan while earnings per share were 0.17 yuan, Shanghai Port said in a preliminary earnings statement to Shanghai's stock exchange today. The company said it changed accounting methods so 2006 figures aren't comparable.

Shanghai, aiming to surpass Singapore as the world's busiest port this year, boosted traffic by 20.5 percent to 23.9 million 20-foot cargo boxes in the first 11 months of 2007. China's exports have tripled in the past five years as low wages attracted investment from overseas manufacturers. About 90 percent of world trade moves by sea.

"Profitability will be supported by higher rates and traffic volume this year," said Ji Lijun, an analyst at Shanghai Securities Co. "The company will also benefit from its investment in Yangshan port."

Traffic in Shanghai may rise to more than 30 million 20-foot cargo boxes a year by 2010 from an expected 25.5 million in 2007, Xu Peixing, director of Shanghai Municipal Port's Administration Bureau, said on Oct. 24. Yangshan port outside Shanghai will have a total of 16 berths after construction is completed in 2008, Xu said.

Singapore boosted traffic 13 percent to 25.5 million boxes in the first 11 months of last year.

Shanghai Port rose 0.2 percent to 9.11 yuan yesterday in Shanghai Stock Exchange trading, before the earnings announcement. The stock gained 30 percent last year, trailing the benchmark CSI 300 Index, which more than doubled.