The WIT Port, which provides container handling, general and bulk cargo handling, agency and logistics and related services, is developed in 2 phases (Phases I & II). Phase I has been operational since 2004 and Phase II is going through the project approval process. The Group's interest in the WIT Port is 85% (Phase I) and 44% (Phase II). The WIT Port when fully developed by 2013 will provide an annual handling capacity of 1,300,000 TEUs.

Shareholding in WIT Port Phase I

Phase II of WIT Port

Despite the Group having been granted the right of first refusal for the development of Phase II of the WIT Port by the PRC joint venture partners who are Wuhan government agencies at inception of the WIT project; the signing of the Heads of Agreement in 2005 (together with a supplemental agreement in April 2007) and the subsequent approval of the development plan by the Central Government for the Group to take a 44% equity interest in the Phase II development with the rest of the interest to be taken up by the two PRC Joint Venture partners of WIT, negotiations of the terms of the joint venture agreement have grinded to a halt resulting in the Group not being able to participate in the development of the project as intended. Notwithstanding our Group’s right to participate in the Phase II development, with the backing from the Wuhan Municipal Government, the two PRC Joint Venture Partners of WIT took over the design and construction of the Phase II development and the Phase II port is expected to be operational by mid 2011 paving the way for the closure of and migration of operations from the Hanyang Port to the new site.

Heavy Item Port

The Group has procured 25 mou of the 124 mou of land reserved for the development of the Heavy Item Port and is awaiting the Wuhan Xinzhou District government to complete the relocation of residents on the remaining site to pave the way for the procurement of the remaining land and for the pre-construction activities to take place.