(26 September 2005, Hong Kong) NWS Holdings Limited (“NWS Holdings” or the “Group”; Hong Kong stock code: 0659) today announced that the Group has signed a letter of intent (“LoI”) with China Railway Container Transport Corp. Ltd., established in Mainland China by the Ministry of Railways, and other independent third parties to set up a 50-year joint venture to develop, operate and manage 18 large-scale pivotal rail container terminals in 18 major cities of Mainland China.
Pursuant to the (“LoI”), the estimated total investment of the joint venture is RMB20 billion (equivalent to approximately HK$19.2 billion) and its registered capital will represent 35% of such total investment. NWS Holdings will hold its 22% interest. The formal joint venture agreement is expected to be signed before end of February 2006.
The joint venture will be principally engaged in container handling, storage, repair of containers, customs clearance, container transportation, distribution, logistics and other related business during the 50-year joint venture period. The pivotal rail container terminals are located at 18 major cities in Mainland China, including Beijing, Shanghai, Tianjin, Guangzhou, Kunming, Wuhan, Qingdao, Zhengzhou, Chongqing, Shenzhen, Harbin, Dalian, Lanzhou, Shenyang, Chengdu, Xian, Urumqi and Ningbo, which are expected to be completed before end of 2008.
Mr K L Chan, Chief Executive Officer of NWS Holdings, views this investment as part of NWS Holdings’ continuing efforts to expand infrastructure and logistics business in Mainland China after the disposal of the Hong Kong ports operation. “In view of the rapidly growing economy in Mainland China, we see great demand on logistics services across the country. By leveraging on the advanced management expertise of NWS Holdings and our partners, we are confident of establishing an efficient rail container terminal network to accommodate the needs of fast and sustainable economy of Mainland China, and to generate favourable contributions for the Group,” Mr Chan added.
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This press release is also available at the website of NWS Holdings ( www.nws.com.hk).
NWS Holdings Limited (“NWS Holdings”, Hong Kong stock code: 0659), the infrastructure and service flagship of New World Development Company Limited (Hong Kong stock code: 0017), embraces a diversified range of businesses in Hong Kong, Mainland China and Macau. Its Infrastructure portfolio includes Roads, Energy, Water and Ports projects. Its Service & Rental division comprises Facilities Rental (the management of Hong Kong Convention and Exhibition Centre and ATL Logistics Centre), Contracting (Hip Hing Construction Group and NWS Engineering Group), Transport (New World First Bus, Citybus and New World First Ferry), etc.
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