The acquisition of five river ports during 2006 in Guigang, Gugagxi province in South China marks AKR’s entry into the logistics segment of the fast growing China market. Guigang is the 13th largest river port in China and is the largest in the Pearl river. Guigang port is the Hub port in South west china which , serves a large hinterland, rich in mineral resources, including Guangxi, Guizhou, Sichuan and Yunan. There is immense potential for handling bulk commodities including transshipment of coal and minerals, container and general cargoes. The Chinese Government has prioritized the development of its inland logistics networks and has invited foreign participation. AKR is positioned to develop the Guigang ports over the next two-three years with major capacity increases planned.

All the river ports are well connected by railway and other infrastructure. The Chinese government has accorded priority to develop river ports as a strategic infrastructure for moving bulk commodities and there exists considerable opportunities for shipping to the fast growing Pearl river delta.

AKR is currently modernizing the operations and expanding the capacity of the ports and is expected to be completed in the next 3 years.

In Line with the development of container port, AKR Guigang Port has worked together with APL (American President Lines) starting March 2007 to commence direct vessel services between AKR Guigang Container Port and Hong Kong Port.

	Current port capacity	Target for 2008-2009
Containers	15,000 TEUs	100,000 TEUs
General cargo	600,000 MT	3,000,000 MT
Bulk cargo	3,300,000 MT	5,900,000 MT