SURGING container volumes at its port offshoot was not enough for Tianjin Development Holdings to avoid a slight 4% decline in net profit last year to HK$552.75m ($70.86m) from HK$573.17m in 2005. Turnover rose 20% to HK$2.69bn.

The fall came despite HK$97.3m of interest income following the May initial public offering of its offshoot Tianjin Port Development Holdings. The listing also generated an exceptional gain of HK$109.2m as Tianjing Development partially disposed of its interest in teh port company.

The group said the exceptional gain last year was less than the HK$235m in 2005, while it also suffered from higher finance charges and general expenses.

Overall, port operations generated a pre-tax profit of HK$230.8m, 35% up on 2005, and slightly more than HK$1bn of total turnover, up 15% from HK$870.9m .

Tianjin Development, which also has interests in toll roads, utilities and a winery, said growth was buoyed by a 21% rise in container throughput to 2.49m teu last year from 2.05m teu in 2005. But the volume of bulk cargo fell 9% to 16.6m tonnes, down from 18.3m tonnes.

The results were announced as Tianjin Port Development said it planned to expand its port and logistics operations in the city.

It will acquire a 40% stake in Tianjin Port Alliance International Container Terminal, which operates phase one of the Beigangchi terminal, from associate company Tianjin Port Group. It will also spend about $91m developing a logistics complex.

Tianjin Development Hol-dings owns 62.8% of Tianjin Port Development following last year's listing.