COSCO Pacific is the fifth largest terminal operator in the world and a leading terminal operator in China. COSCO Pacific is the flagship of China Ocean Shipping (Group) Company (“COSCO”) for terminal business with wide-ranging terminal network and port portfolio in both China and overseas, with throughput growing a compound annual grower rate of over 30% for the past five years.

Since the late 1990s, COSCO Pacific has established a strong presence in major hub ports along China’s coastal regions: Bohai Rim (Qingdao, Dalian, Tianjin, Yingkou); Yangtze River Delta (Shanghai, Ningbo); Pearl River Delta (Hong Kong, Nansha, Yantian), and the southeast coast of China (Xiamen, Quanzhou and Fuzhou). We also have a major presence in feeder-ports along the Yangtze River (Zhangjiagang, Yangzhou and Nanjing). In addition, COSCO Pacific has investments in overseas container terminals such as Singapore, Antwerp in Belgium and Port Said in Egypt.

Nowadays, COSCO Pacific has 27 joint venture terminal operations as opposed to one such company in 1995. We have expanded from having stakes in just two berths in 1995 to 140 berths at the end of 2007, and from a 1.6 million TEU annual handling capacity in 1995 to more than 73.5 million TEUs in 2007, with container throughput standing at about 38.9 million TEUs.

COSCO and China COSCO Holdings Company Limited (“China COSCO”), the ultimate and intermediate shareholder of COSCO Pacific respectively, have provided strong support to the Company in its drive to capture business opportunities.

COSCO Container Line Company Limited, the wholly owned subsidiary of China COSCO, is the world’s fifth largest container shipping company, managing and operating 144 vessels with an aggregate capacity of over 435,000 TEUs. COSCON is one of the major customers of our terminal business and the largest customers of our container leasing business.

The ongoing merger and acquisition activities in the global container terminal industry, the increasing containerization and intensifying competition, as well as the growing size and capacity of container fleets, all underline the importance of building a worldwide network.

COSCO Pacific continues to forge strong partnerships with global port operators and liners and to maintain good relationships with local port authorities. We have acquired interests in new terminals and increased investment in existing terminals with a view to building controlling stakes and becoming a port operator.

COSCO Pacific continues to progressively assume majority stakes in the ports and terminals where the Company operates, particularly in Mainland China. At the same time, we are moving from a container terminal portfolio towards a more diversified terminal portfolio, and transforming our business model from a strategic emphasis on the China market to the global market with a primary focus on China.