The ultimate parent company of COSCO Pacific is China Ocean Shipping (Group) Company ("COSCO") which is the largest shipping enterprise in China and the second largest in the world.

Over the last decade, the business growth of COSCO Pacific has been remarkable. We have become the world leading container terminal operator ranked in fifth position, and our container leasing and management fleet is ranked second in the world. COSCO Pacific also holds a 49% interest in COSCO Logistic Co., Ltd., one of the largest logistic companies in China, and a 20.80% interest in China International Marine Containers (Group) Co., Ltd., the largest container manufacturer in the world.

Since 2002, COSCO Pacific achieved a substantial growth in its core businesses by capturing the business opportunities arising from the rapid economic growth in China and the increasing containerized trade in the world. The growth of COSCO Pacific is closely linked with the strong support we have received from our parent company, COSCO and its affiliated subsidiaries. These parental supports have provided us with competitive advantages to capture investment opportunities and expand our two major businesses: terminal operation, and container leasing services.

Terminal business: key growth driver
The senior management of COSCO Pacific has intensified its efforts to refocus most of the company’s resources to develop the core businesses, particularly the terminal business as the key earnings growth driver since 2007. Being the terminal business flagship of COSCO, our key strategy to capture terminal investment opportunities is to further strengthen our carrier-terminal partnerships with other port operators and major liner operators.

COSCO Pacific continues to progressively assume majority stakes in the ports and terminals where the Company operates, particularly in Mainland China. We are also pursuing expansion opportunities through overseas terminal investment and moving from a container terminal portfolio towards a more diversified terminal portfolio, such as break-bulk cargo terminals.

COSCO Pacific invested substantially in 27 terminal operations which strategically located along the coastal regions in China and overseas as well. By the end of 2007, our terminal portfolio was expanded to be capable to handle 73.5 million TEUs per annum and had 140 berths being located in 15 ports in China and three ports overseas.

Container leasing and management services - asset light model
Our container leasing and management business continues to grow and its fleet size reached 1.52 million TEUs as at the end of 2007 representing approximately 13% of market share among the global industry.

We provide comprehensive long-term and short-term container leasing services and container management services to our customers. They include most of the top 20 global liners, among which COSCO Container Lines Company Limited ("COSCON") is our largest customer. By the end of 2007, total number of containers leased to COSCON was 517,000 TEUs while 240,000 TEUs of containers were leased to other international customers, which accounted for 34% and 16% of our total fleet respectively.

In 2006, we expanded our container management service substantially by disposing 600,082 TEUs of owned containers ("sale and manage back of containers") to an investor while maintaining the management role of the sold assets. In 2007, we further expand our management service by disposing 130,000 TEUs of owned containers by sales and managed back of containers. By the end of 2007, total number of our managed boxes was 763,000 TEUs, representing 50% of our total fleet.

By this strategic disposal of containers, we provide our container leasing business with a more flexible capital structure and lower operational risk, so as to expand our market share and maintain our leading position in the industry with an "asset light model".