As the sole container operator, firm will spend HK$4b to develop and manage Manta under a 30-year concession
Hutchison Port Holdings, the world's biggest container terminal operator, yesterday agreed to spend up to HK$4 billion to develop and manage the port of Manta in Ecuador.
Hutchison Whampoa's majority held international port investment arm said the money would be used to redevelop the port over the life of the project's 30-year concession.
It is the first time the Ecuadorean government has allowed foreign interests to develop its ports, which it considers strategic assets.
Executives from Hutchison are betting that Manta's location, two hours from major maritime shipping lanes, and its natural deep-water harbour will tempt shipping lines to make it their first port of call on the west coast of South America.
Hutchison will also be keen to capitalise on Manta's close proximity to the Panama Canal, about 1,200 kilometres to the north.
The company, which paid a US$1 million deposit last month to show its commitment to the project, agreed to build 1,250 metres of quay length out into the open sea for year-round operations.
