The birth of the Hong Kong Island family

The Central Airport Railway Station superstructure project has just been finalized, and the Hong Kong government has announced a public tender for the "Inland River Terminal". The major consortiums are immediately sharpening their knives!

At this time, Container Terminal No. 9 does not yet have a "winner". Although Sino-British relations have improved - everyone feels that continuing to quarrel will not help and is not conducive to the subsequent development of Hong Kong; however, there are constant disputes over the ownership of Container Terminal No. 9. , and even want to reallocate berths No. 1 to 9.

It concerns the interests of everyone, and it is not just the Chinese and British parties who are quarreling. Hong Kong businessmen, British businessmen, and Chinese investors have all been involved in the confrontation at the Kwai Chung Container Terminal.

Lin Zhichao is not worried - the outcome of the matter is not good for him, to put it bluntly - he is a local gangster in Hong Kong, and the influence of this local gangster is very, very large, far exceeding that of Li Jiacheng in his previous life.

Since Container Terminal No. 9 did not use a bidding method at the beginning, which caused a lot of criticism from Hong Kong public opinion, this time the Embarcadero Terminal will use an open bidding method to decide who will win?

Although there is no progress for the No. 9 Container Terminal, Lin Zhichao attaches great importance to the tender for the Inland River Terminal and decided to show his strength again and win it in one fell swoop.

The river container terminal specializes in handling containers destined for the Pearl River Basin (river). Containers can travel to and from the Pearl River Delta by both water and land routes. The major player in water transport is the Chinese-owned China Transport Group, which accounts for 1/9 of the inland river container throughput; the major player in land transport is the Global Sea-Land Combined Container Terminal Company, with Global Group holding 50% of the shares. The company's inland container share is about 1/4, and the rest are owned by Container trucks owned by each company are self-transported or transported.

According to information released by the Hong Kong government in April 1995, Hong Kong's annual container throughput in 1994 was 12.05 million TEUs, a net increase of 1.94 million TEUs from 1993, an increase of 20%.

Among the three major operations, the throughput of Kwai Chung Container Terminal was 8.28 million units, an annual increase of 25.5%; the mid-stream operation was 2.81 million units, an annual increase of 1.6%; and the inland water transport throughput was 960,000 units, an annual increase of 52.3%.

Among the three, inland waterway transportation has the largest increase, reflecting the strong economic development of the Pearl River Delta and the surge in demand for container transportation.

Under this circumstance, the Hong Kong government decided to build the Tuen Mun River Container Terminal and award the contract through open tendering.

Cheung Kong Group.

Guo Bingxiang and Simon Keswick came to visit, and Lin Zhichao, Lin Ruihuan and his son received them.

As the saying goes, in Hong Kong you can only make a lot of money by pulling the "Superman Tail". This is a popular saying in Hong Kong.

Chinese capital has pulled the "Superman's tail" and has stepped up to list in Hong Kong. CITIC Kingfeng has just been promoted to a blue chip stock;

Zheng Yutong is known as the "Superman Tail". Last year, Lin Zhichao introduced him to buy the shares of "Modern Containers" from two British companies, and he became the largest shareholder of "Modern Containers" in one fell swoop, accounting for 30% of the shares.

Lee Shau Kee pulled off the "Superman's Tail" and entered Hong Kong's Central last year, owning a 45% stake in the development rights above the Airport Railway Central Station.

At present, Hong Kong's second largest container terminal company, Modern Container, holds No. 2, 3, and 5 Kwai Chung Container Terminal and two berths of No. 8 Container Terminal. The equity is 30% of New World Development, 20% of Wharf, and China Merchants. 20%, Swire 17%, and the rest are owned by HSBC, Jebsen \u0026 Co., etc.

Among them, the equity held by New World Development was originally planned to be sold to two British-owned companies, Muskie and China Railway Holdings, to Lin Zhichao. However, Lin Zhichao was also worried about being said to be too monopolistic about the Kwai Chung Container Terminal, and that Modern Containers itself was a company. It is a public enterprise, not a company under the Wharf Group, so there is no need to increase its holdings. It is simply cheaper for Zheng Yutong, and even part of the loan is provided by Hengfeng Bank.

In this way, Modern Container is actually an associated company composed of multiple consortiums, and no one is the real controller.

As for international containers, they can also compete for No. 9 Container Terminal and Inland River Terminal without any scruples!

Guo Bingxiang said flatteringly when they met: "Lin Sheng is still so young, he looks much more energetic than us juniors!"

He is one year younger than Lin Ruihuan, but Guo Desheng is 17 years older than Lin Zhichao.

It can be seen that the Lin Zhichao family has achieved enviable achievements in inheritance.

Lin Zhichao said: "As long as you are in a good mood every day, you can live young!"

Guo Desheng and Simon Keswick suddenly felt something in their hearts. There was something in this man’s words!

For decades, Lin Zhichao's family has been unstoppable and has defeated British, Chinese and foreign investors. Of course, they are always in a good mood!

"You taught me right!"

Guo Desheng's posture was very low, obviously he wanted to pull the "Superman tail".

Simon Keswick said impatiently: "Lin Sheng, regarding this inland river terminal bidding, our two companies are very much looking forward to cooperating with you!"

Lin Zhichao said cheerfully: "No problem! Of course, if Mr. Ximen can give me a reason, I will be even happier!"

Simon Keswick said with a smile: "Because we form a consortium with you, we have a greater chance of winning! Of course, we at Jardine are British-owned, which also helps!"

Lin Zhichao smiled and then said jokingly: "As far as I know, New World Development is taking the lead in forming another consortium. Based on my understanding of Zheng Yutong, he probably feels that the influence of British capital in Hong Kong is no longer a concern as 1997 is approaching. , so there is no intention to win over Yihe."

Simon Keswick blushed. He really knew the reason, but he immediately adjusted his mood and said humorously: "I believe Mr. Lin won't think so!"

In business matters, we may work together today and do business together tomorrow.

This is the case in Hong Kong. Everyone only recognizes whether you are strong enough, but not how ‘bad’ you are!

Lin Zhichao said with a smile: "Of course! What's more, I am easy to talk to. If we can make money together, let's make money together! In this way, we have three consortiums, and one is COSCO, and we will raise funds from the three capitals of Hong Kong, China and Britain. You will do the specific work. Talk to Rui Huan later!"

Guo Bingxiang said happily: "No problem! With Brother Huan in charge, our plan will definitely shine!"

Ma P did a good job. It seems that after suffering a few losses, he has learned wisely!

At first, the three Kwok brothers thought about whether they could have an arm-wrestling relationship with Lam, but when they got on top of Container Terminal 9 and the Airport Railway Central Terminal, they suddenly realized their status.

Especially for Container Terminal 9, the Sun Hung Kai and Jardines that I thought I had got were spit out from my mouth. Although Container Terminal 9 has not decided who will develop it, it is obvious that Hutchison Whampoa's berths are indispensable, otherwise there would be no need to argue.

After Guo Bingxiang and Simon Keswick left, Lin Ruihuan came to his father's office.

Lin Zhichao warned him: "This time you take the lead and you need to think about how to defeat your opponent!"

Lin Ruihuan nodded and said: "This time, Uncle Tong thought that British capital was no longer important as 1997 was approaching, so he did not approach Jardine. As for us, the Hong Kong government intends to reduce our monopoly, so we need to win over British capital and Hong Kong investors and Chinese investors will make a fortune together. Therefore, I think it is reasonable for us to hold 35 to 40% of the shares."

Lin Zhichao nodded and said, "Well, you communicate with them about this. Win-win cooperation is very important!"

The implication is that the shares should not be fixed and should be discussed by everyone.

Lin Ruihuan said: "Well, this is what I think about this bidding. Three points need to be focused on: the first is environmental protection, the second is transportation, and the third is price. Opponents are likely to ignore these two issues of environmental protection and transportation. , we mainly use water transportation (tugboats, shuttle cargo ships) in Hong Kong, and road transportation (heavier pollution) when entering the mainland. There are fewer container terminals in Guangdong Province and more cargo ships are used. The Hong Kong government does not care too much about the mainland. Regarding the pollution issue, I probably only care about Hong Kong's environmental issues. As for the price, I think it is the least important. The Hong Kong government is about to take over, and Hong Kong government officials will not care about the specific price."

After listening to his son's analysis, Lin Zhichao felt that it made sense and said with satisfaction: "You have done some work, not bad!"

"It's all the result of communicating with them!"

Lin Zhichao nodded. Lin Ruihuan was already involved in Hutchison Whampoa's affairs and served as the vice chairman of its board of directors, gradually taking over.

It’s a new year in the blink of an eye (1996)

In early February, just after Lam Chi-chao returned to Hong Kong from official duties in the Mainland, he heard the magnitude 7 earthquake in Khotan Province. He immediately joined hands with four of his companies - Cheung Kong, Hutchison, Hong Kong Electric and Wharf - to donate a total of HK$20 million to express love and kindness. support.

In recent years, companies under the Lin Zhichao family have moved to the mainland to invest, so if any disaster occurs, support will be provided in the name of the company.

As for the ‘Lin Zhichao Foundation’, it is more focused on charitable causes such as education, medical care, agriculture, etc., and its nature is different. One is 'emergency relief' and the other is 'long-term charity'.

In the past four years, companies under the Lin Zhichao family have invested heavily in the mainland, while overseas investment has been relatively weakened. This is a very wise layout.

Therefore, it is natural to handle the relationship with the mainland authorities well.

Wharf Group.

"Dad, we have basically completed the withdrawal of our real estate investments in Thailand, Malaysia, and Indonesia. We have cashed out a total of 15 billion Hong Kong dollars before and after. We still have nearly 4 billion Hong Kong dollars in assets in Thailand and Malaysia. Last year (1995), the Wharf Group's normal profits was HK$5.8 billion, and non-recurring profits were HK$10.2 billion." Lin Ruihai couldn't help but smile excitedly on his calm face.

Both children, Lin Ruihuan and Lin Ruihai, have calm personalities, but Lin Ruihuan may be more generous and Lin Ruihai is more low-key. When he was so powerful in Singapore - winning the Paragon, Singapore Land, etc., Lin Ruihai hardly gave any interviews.

Perhaps, only in front of Lin Zhichao, Lin Ruihai would let go of his caution and reveal his childishness.

"What are you planning to do?" Lin Zhichao said kindly.

Although the Wharf Group has been completely handed over to Lin Ruihai (management rights), Lin Ruihai will still report and seek advice from Lin Zhichao.

"The focus of investment is still on the mainland, but I plan to extend to Europe and the United States!" Lin Ruihai said decisively.

The current Wharf Group has invested in multiple Times Squares in the Mainland, as well as the World Financial Center, the tallest building in Shanghai, and has also invested heavily in real estate development, which is not weaker than the offensive of Cheung Kong Group.

Lin Zhichao nodded and said: "Based on my analysis of economic trends and the conditions of various countries in recent years, Thailand, Malaysia, Indonesia and other Southeast Asian countries, Hong Kong and South Korea have quite large bubbles, so they are not suitable for investment. Looking at Europe and the United States, the economy has already The adjustment is complete, so you are right to think so!"

"I see!"

Which project to invest in depends on Lin Ruihai himself, and of course Lin Zhichao will also provide advice.

In this era, many projects are profitable, as long as you don’t pay too much.

A month later, the results of the inland river terminal bidding came out:

At a land grant price of HK$1,141.11 million, a tender was awarded to the River Freight Terminal Company (led by Cheung Kong) to design, develop and operate the River Container Terminal in Tuen Mun Area 38. The land grant period is until March 30, 2047. The lot is Lot 393 in Tuen Mun City, covering an area of ​​approximately 65 hectares. The winning bidder needs to put the terminal cargo handling facilities into operation in two phases. In the initial period, within 36 months from the date of land grant, the annual cargo handling capacity shall not be less than 2.1 million tons; and in the subsequent 18 months, it will increase to Not less than 8.5 million tons per year. The terminal design will include a 3,000-meter-long berth to handle the rapidly growing inland waterway freight volume in China.

The spokesman said that the Hong Kong government received bids from two bidders, ODELONLTD and River Freight Terminal Limited. According to the requirements and provisions of the bidding documents, the authorities believe that the bids of the consortium led by New World and Henderson failed to meet the requirements specified in several bidding documents.

For a time, public opinion was in an uproar!

Because ODELON LTD, a consortium headed by New World and Henderson, had a price tag of HK$2.3 billion, twice that of the Inland River Freight Terminal Company; but the winner was the Inland River Terminal Company led by Cheung Kong and Sun Hung Kai (Cheung Kong 37%, Sun Hung Kai 37%, Jardine 15%, COSCO 11%).

In other words, ODELONLTD is due to the unqualified bid document, not the price!

The Oriental Daily published an article the next day: "The high-profile battle for the Tuen Mun River Container Terminal ended yesterday with SHKP and Hutchison leading

The consortium cleverly won it at a super low price of HK$1.14111 billion. It is far lower than the HK$2.38 billion price tag of the consortium headed by New World and Henderson, the only competitor, and is as much as HK$1.2999 billion lower. This reflects the success of SHKP and Hutchison Food Bridge in this battle to form a maritime transportation fleet through the purchase of 30 sea shuttle cargo ships and 15 tugboats. Although the system will cost HK$285 million, it can meet the requirements of the Hong Kong government. Requirements for environmental protection and transportation: 'Technical', winning with a price lower than the opponent's bid of more than 1.2 billion. "

Later in the media:

Henderson Chairman Lee Shau-kee expressed dissatisfaction with the result. He claimed that the consortium's price was not high. If the bidding was open to the public, the price of the entire project could reach more than HK$3 billion.

New World General Manager Liang Zhijian looked unhappy and claimed that he was "unwilling to comment" on the results of the bidding announcement. Another official of the company, who did not want to be named by the media, expressed confusion and disappointment about the matter.

New World Managing Director Cheng Ka-shun expressed his assessment bluntly: "The bidding announced by the Hong Kong government for the development rights of the Tuen Mun River Terminal is not for the highest bidder. This will undermine New World's confidence and interest in future bids, and the bidding system will also be affected in the future. affected.”

The media said: "Mr Cheng recently told the Hong Kong government that in addition to the price, the bidding for the Tuen Mun River Terminal will also consider the environmental protection and transportation requirements of the project. He said that if New World fails to bid for the project at a high price this time , the group’s interest in participating in projects through bidding in the future will definitely be affected. He also criticized that if the Hong Kong government does not use the highest bidder as the standard, the future bidding system will inevitably be affected. "

Zheng Yutong is semi-retired again, so Zheng Jiachun's words represent not only the new world, but also the Zheng family.

Faced with complaints from Henderson and New World, Cheung Kong President Lin Ruihuan also became the target of interviews.

He said: "SHKP and the consortium led by Hutchison have three ways to win. One is environmental protection, the other is transportation, and the third is pricing."

The reporter asked SHKP and Hutchison whether they outperformed their opponents in terms of environmental protection and transportation.

Lin Ruihuan replied in a positive tone:

"I don't want to criticize, but that's what it is."

With this achievement, Lin Ruihuan, the leader of the second generation of the Lin family, was once again touted by the media as 'the successor of the Lin family'.

The media all know that Lin Zhichao is basically retired now, and it is possible that he will hand over the chairmanship of Cheung Kong in the next few years.

Therefore, now that Lin Ruihuan is so powerful, Cheung Kong shareholders are relieved.

On the contrary, New World Development's share price began to fall;

As Cheung Kong's COSCO stock price began to skyrocket, it was rumored that this Chinese-funded company would organize a fleet. After Hong Kong returns, this Chinese-funded company can "eat up" all the inland river container transportation. (End of chapter)