Asset Write Down by Asciano

The entry of a third domestic stevedore in Australia, Hutchison Whampoa, has seen the Asciano Group write down their assets by over $1 billion. The company insists this exercise will not affect its underlying business – overall cash flow for compliance with banking covenants. 

Hutchison Whampoa is planning to operate new container terminals at Brisbane and Sydney in the next few years and to be operating in Melbourne Port by 2015. This will introduce a third competitor into these ports coming up directly against Asciano’s Patrick operation and P&O owned by DP World.

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