<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-K
    [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
        SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7,
        1996].

                   For the fiscal year ended December 31, 2000

                                       OR

    [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
        SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

         For the transition period from ______________ to ______________

                         Commission file number 0-27496

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

             (Exact name of registrant as specified in its charter)

          California                                    94-3230380
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

          One Front Street, 15th Floor, San Francisco, California 94111
           (Address of principal executive offices)         (Zip Code)

        Registrant's telephone number, including area code (415) 677-8990
           Securities registered pursuant to Section 12(b) of the Act:
                                                       Name of each exchange on
              Title of each class                        which registered
                Not Applicable                         _________________________

           Securities registered pursuant to Section 12(g) of the Act:
                     UNITS OF LIMITED PARTNERSHIP INTERESTS
                                (Title of Class)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] . No [ ].

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and
will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [X]

The aggregate market value of the voting stock held by non-affiliates of the
registrant is not applicable.


                                  Documents incorporated by Reference
PART I
Item 1 - Business       Prospectus of Cronos Global Income Fund XVI, L.P., dated
                        December 28, 1995 included as part of Registration
                        Statement on Form S-1 (No. 33-98290) and supplement
                        thereto dated February 6, 1997


                        Note Purchase Agreement, dated as of March 30, 2000,
                        filed as Exhibit 10.1 to the Registrant's Report on Form
                        10-Q for the quarterly period ended March 31, 2000


<PAGE>   2

                         PART I - FINANCIAL INFORMATION


Item 1. Business

     (a) General Development of Business

     The Registrant is a limited partnership organized under the laws of the
State of California on September 1, 1995, for the purpose of owning and leasing
marine cargo containers, special purpose containers and container-related
equipment. The Registrant was initially capitalized with $100 and commenced
offering its limited partnership interests to the public subsequent to December
28, 1995, pursuant to its Registration Statement on Form S-1 (File No.
33-98290). The Registrant had no securities holders as defined by the Securities
and Exchange Act of 1934 as of December 31, 1995. Additionally, the Registrant
was not engaged in any trade or business during the period covered by the
report, as the offering broke initial impound on March 29, 1996. On February 3,
1997, Cronos Capital Corp. ("CCC"), the general partner, suspended the offer and
sale of units in the Registrant. Information concerning the suspended offer and
sale of units in the Registrant is incorporated by reference to the discussion
in the Supplement dated February 6, 1997 to the Registration Statement on Form
S-1 (No. 33-98290), dated December 28, 1995, as supplemented December 27, 1996.
The offering was not resumed and terminated on December 27, 1997.

     The Registrant raised $31,993,340 in subscription proceeds. The following
table sets forth the use of said subscription proceeds.

<TABLE>
<CAPTION>

                                                                                          Percentage of
                                                                      Amount              Gross Proceeds
                                                                  -------------           --------------
       <S>                                                        <C>                     <C>
       Gross Subscription Proceeds                                  $31,993,340                 100.0%

       Public Offering Expenses:
            Underwriting Commissions                                $ 3,199,334                  10.0%
            Offering and Organization Expenses                      $ 1,482,466                   4.6%
                                                                    -----------                 -----

            Total Public Offering Expenses                          $ 4,681,800                  14.6%
                                                                    -----------                 -----

       Net Proceeds                                                 $27,311,540                  85.4%

       Acquisition Fees                                             $ 1,276,220                   4.0%

       Working Capital Reserve                                      $   319,933                   1.0%

       Unexpended Proceeds                                          $   190,993                   0.6%
                                                                    -----------                 -----

       Gross Proceeds Invested in Equipment                         $25,524,394                  79.8%
                                                                    ===========                 =====
</TABLE>

     On March 30, 2000, the Registrant borrowed $3,305,600 under a term loan for
the purpose of acquiring additional equipment. The registrant borrowed an
additional $1,011,000 on April 28, 2000 and an additional $727,000 on May 31,
2000. The term loan was obtained from one lending source pursuant to the
Registrant's Partnership Agreement. The loan, due to expire in the year 2006, is
scheduled to be repaid in twenty-four quarterly installments from the
Registrant's cash generated from operations. As of December 31, 2000, twenty-two
quarterly installments remained.

     The general partner, CCC, is a wholly-owned subsidiary of Cronos
Holdings/Investments (U.S.), Inc., a Delaware corporation. These and other
affiliated companies are ultimately wholly-owned by The Cronos Group, a holding
company registered in Luxembourg (the "Parent Company") and are collectively
referred to as the "Group". The activities of the container division of the
Group are managed through the Group's subsidiary in the United Kingdom, Cronos
Containers Limited (the "Leasing Company"). The Leasing Company manages the
leasing operations of all equipment owned by the Group on its own behalf or
managed on behalf of other third-party container owners, including all other
programs organized by CCC.


                                       2

<PAGE>   3

     On October 9, 1995, the Leasing Company entered into a Leasing Agent
Agreement with the Registrant assuming the responsibility for all container
leasing activities.

     For a discussion of recent developments in the Registrant's business, see
Item 7, "Management's Discussion and Analysis of Financial Condition and Result
of Operations."

     For information concerning the containers acquired by the Registrant, see
Item 2, "Properties."

     (b) Financial Information About Segments

     The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards (SFAS) No. 131, "Disclosures about Segments of an
Enterprise and Related Information," which requires that public business
enterprises report financial and descriptive information about reportable
operating segments. An operating segment is a component of an enterprise that
engages in business activities from which it may earn revenues and incur
expenses, whose operating results are regularly reviewed by the enterprise's
chief operating decision maker to make decisions about resources to be allocated
to the segment and assess its performance, and about which separate financial
information is available. The Leasing Company's management operates the
Partnership's container fleet as a homogenous unit and has determined, after
considering the requirements of SFAS No. 131, that as such it has a single
reportable operating segment.

     The Partnership derives revenues from dry cargo containers, refrigerated
containers and tank containers. As of December 31, 2000, the Partnership
operated 4,493 twenty-foot, 1,490 forty-foot and 1,748 forty-foot high-cube
marine dry cargo containers, as well as 89 twenty-foot and 299 forty-foot
high-cube refrigerated cargo containers, and 52 twenty-four thousand-liter
tanks. A summary of gross lease revenue earned by the Leasing Company on behalf
of the Registrant, by product, for the years ended December 31, 2000, 1999 and
1998 follows:

<TABLE>
<CAPTION>
                                                        2000                   1999                1998
                                                    ---------------       ---------------       ----------
          <S>                                       <C>                   <C>                  <C>
          Dry cargo containers                      $3,228,347             $2,068,065           $2,459,658
          Refrigerated containers                    1,424,639              1,493,838            1,521,647
          Tank containers                              156,837                171,213              226,648
                                                    ----------             ----------           ----------
          Total                                     $4,809,823             $3,733,116           $4,207,953
                                                    ==========             ==========           ==========
</TABLE>

     Due to the Partnership's lack of information regarding the physical
location of its fleet of containers when on lease in the global shipping trade,
it is impracticable to provide the geographic area information required by SFAS
No. 131. Any attempt to separate "foreign" operations from "domestic" operations
would be dependent on definitions and assumptions that are so subjective as to
render the information meaningless and potentially misleading.

     One sub-lessee of the Leasing Company contributed approximately 12% or
$535,208 of the Leasing Company's rental revenue billings earned during 2000 on
behalf of the Registrant. One sub-lessee of the Leasing Company contributed
approximately 15% and 13% of the Registrant's rental revenue billings earned
during 1999 and 1998, respectively.

     (c) Narrative Description of Business

(c)(1)(i) A marine cargo container is a reusable metal container designed for
the efficient carriage of cargo with a minimum of exposure to loss from damage
or theft. Containers are manufactured to conform to worldwide standards of
container dimensions and container ship fittings adopted by the International
Standards Organization ("ISO") in 1968. The standard container is either 20'
long x 8' wide x 8'6" high (one twenty-foot equivalent unit ("TEU"), the
standard unit of physical measurement in the container industry) or 40' long x
8' wide x 8'6" high (two TEU). Standardization of the construction, maintenance
and handling of containers allows containers to be picked up, dropped off,
stored and repaired efficiently throughout the world. This standardization is
the foundation on which the container industry has developed.

Standard dry cargo containers are rectangular boxes with no moving parts, other
than doors, and are typically made of steel or aluminum. They are constructed to
carry a wide variety of cargos ranging from heavy industrial raw materials to
light-weight finished goods. Specialized containers include, among others,
refrigerated containers for the transport of temperature-sensitive goods and
tank containers for the carriage of liquid cargo. Dry cargo containers currently
constitute approximately 87% (in TEU) of the worldwide container fleet.
Refrigerated and tank containers currently constitute approximately 5% (in TEU)
of the worldwide container fleet, with open-top and other specialized containers
constituting the remaining 8%.


                                       3

<PAGE>   4

     One of the primary benefits of containerization has been the ability of the
shipping industry to effectively lower freight rates due to the efficiencies
created by standardized intermodal containers. Containers can be handled much
more efficiently than loose cargo and are typically shipped via several modes of
transportation, including truck, railway and ship. Containers require loading
and unloading only once and remain sealed until arrival at the final
destination, significantly reducing transport time, labor and handling costs and
losses due to damage and theft. Efficient movement of containerized cargo
between ship and shore reduces the amount of time that a ship must spend in port
and reduces the transit time of freight moves.

     The logistical advantages and reduced freight rates brought about by
containerization have been major catalysts for world trade growth during the
last twenty-five years, resulting in increased demand for containerization. The
world's container fleet has grown from an estimated 270,000 TEU in 1969 to
approximately 14 million TEU by mid-2000.

     The container leasing business is cyclical, and depends largely upon the
rate of increase in world trade. The container leasing industry has experienced
cyclical downturns during the last sixteen years.

     BENEFITS OF LEASING

     Leasing companies own approximately 46% of the world's container fleet with
the balance owned predominantly by shipping lines. Shipping lines, which
traditionally operate on tight profit margins, often supplement their owned
fleet of containers by leasing a portion of their equipment from container
leasing companies and, in doing so, achieve the following financial and
operational benefits:

     o  Leasing allows the shipping lines to utilize the equipment they need
        without having to make large capital expenditures;

     o  Leasing offers a shipping line an alternative source of financing in a
        traditionally capital-intensive industry;

     o  Leasing enables shipping lines to expand their routes and market shares
        at a relatively inexpensive cost without making a permanent commitment
        to support their new structure;

     o  Leasing allows shipping lines to respond to changing seasonal and trade
        route demands, thereby optimizing their capital investment and storage
        costs.

     TYPES OF LEASES

     The Registrant's containers are leased primarily to shipping lines
operating in major trade routes (see Item 1(d)). Most if not all of the
Registrant's marine dry cargo containers are leased pursuant to operating
leases, primarily master leases, where the containers are leased to the ocean
carrier on a daily basis for any desired length of time, with the flexibility of
picking up and dropping off containers at various agreed upon locations around
the world. Some of the Registrant's containers may be leased pursuant to term
leases, which may have durations of less than one year to five years. The
Registrant's specialized containers are generally leased on longer-term leases
because the higher cost, value and complexity of this equipment makes it more
expensive to redeliver and lease out.

     o  Master lease. Master leases are short-term leases under which a customer
        reserves the right to lease a certain number of containers, as needed,
        under a general agreement between the lessor and the lessee. Such leases
        provide customers with greater flexibility by allowing them to pick up
        and drop off containers where and when needed, subject to restrictions
        and availability, on pre-agreed terms. The commercial terms of master
        leases are negotiated annually. Master leases also define the number of
        containers that may be returned within each calendar month, the return
        locations and applicable drop-off charges. Due to the increased
        flexibility they offer, master leases usually command higher per-diem
        rates and generate more ancillary fees (including pick-up, drop-off,
        handling and off-hire fees) than term leases. Short-term lease
        agreements have a duration of less than one year and include one-way,
        repositioning and round-trip leases. Ocean carriers generally use
        one-way leases to manage trade imbalances (where more containerized
        cargo moves in one direction than another) by picking up a container in
        one port and dropping it off at another location after one or more legs
        of a voyage.


                                       4

<PAGE>   5

     o  Term lease. Term leases are for a fixed period of time and include both
        long and short-term commitments, with most extending from three to five
        years. Term lease agreements may contain early termination penalties
        that apply in the event of early redelivery. In most cases, however,
        equipment is not returned prior to the expiration of the lease. Term
        leases provide greater revenue stability to the lessor, but at lower
        rates than master leases. Ocean carriers use long-term leases when they
        have a need for identified containers for a specified term. Short-term
        lease agreements have a duration of less than one year and include
        one-way, repositioning and round-trip leases. They differ from master
        leases in that they define the number of containers to be leased and the
        lease term. Ocean carriers generally use one-way leases to manage trade
        imbalances (where more containerized cargo moves in one direction than
        another) by picking up a container in one port and dropping it off at
        another location after one or more legs of a voyage.

     The terms and conditions of the Leasing Company's leases provide that
customers are responsible for paying all taxes and service charges arising from
container use, maintaining the containers in good and safe operating condition
while on lease and paying for repairs, excluding ordinary wear and tear, upon
redelivery. Some leases provide for a "damage protection plan" whereby lessees,
for an additional payment (which may be in the form of a higher per-diem rate),
are relieved of the responsibility of paying some of the repair costs upon
redelivery of the containers. The Leasing Company has historically provided this
service on a limited basis to selected customers. Repairs provided under such
plans are carried out by the same depots, under the same procedures, as are
repairs to containers not covered by such plans. Customers also are required to
insure leased containers against physical damage and loss, and against third
party liability for loss, damage, bodily injury or death.

     The percentage of equipment on term leases as compared to master leases
varies widely among leasing companies, depending upon each company's strategy or
margins, operating costs and cash flows.

     Lease rates depend on several factors including the type of lease, length
of term, maintenance provided, type and age of the equipment, location and
availability, and market conditions.

     CUSTOMERS

     The Registrant is not dependent upon any particular customer or group of
customers of the Leasing Company and only one of those customers accounted for
more than 10% of the Registrant's revenue, contributing approximately 12% or
$535,208 of the rental revenue billings earned during 2000. The customers of the
Leasing Company are billed and pay in United States dollars.

     The Leasing Company sets maximum credit limits for the Registrant's
customers, limiting the number of containers leased to each according to
established credit criteria. The Leasing Company continually tracks its credit
exposure to each customer. The Leasing Company's credit committee meets
quarterly to analyze the performance of the Registrant's customers and to
recommend actions to be taken in order to minimize credit risks. The Leasing
Company uses specialist third party credit information services and reports
prepared by local staff to assess credit applications.

     The Registrant is subject to unexpected loss in rental revenue from lessees
of its containers that default under their container lease agreements with the
Leasing Company.

     FLEET PROFILE

     The Registrant acquired high-quality dry cargo containers manufactured to
specifications that exceed ISO standards and are designed to minimize repair and
operating costs.

     Dry cargo containers are the most commonly used type of container in the
shipping industry. The Registrant's dry cargo container fleet is constructed of
all Corten steel (i.e., Corten roofs, walls, doors and undercarriage), which is
a high-tensile steel yielding greater damage and corrosion resistance than mild
steel.

     Refrigerated containers are used to transport temperature-sensitive
products, such as meat, fruit, vegetables and photographic film. All of the
Registrant's refrigerated containers have high-grade stainless steel interiors.
The majority of the Registrant's 20-foot refrigerated containers have high-grade
stainless steel walls, while most of the Registrant's 40-foot refrigerated
containers are steel framed with aluminum outer walls to reduce weight. As with
the dry cargo containers, all refrigerated containers are designed to minimize
repair and maintenance and maximize damage resistance.


                                       5

<PAGE>   6

     Tank containers are constructed in compliance with International Maritime
Organization ("IMO") standards and recommendations. The tanks purchased by the
Registrant have all been IMO-1 type tanks constructed to comply with IMO
recommendations which require specific pressure ratings and shell thicknesses.
These tanks are designed to carry highly flammable materials, corrosives, toxics
and oxidizing substances, but are also capable of carrying non-hazardous
materials and foodstuffs. They have a capacity of 21,000-24,000 liters and are
generally insulated and equipped with steam or electrical heating.

     The Registrant purchased its dry cargo containers from manufacturers in
China, South Korea, Taiwan, Indonesia, India, Italy and the United Kingdom as
part of a policy of sourcing container production in locations where it can meet
customer demands most effectively.

     The Registrant's refrigerated containers were purchased mainly from Korean
manufacturers. The majority of its refrigeration units were purchased from
Carrier Transicold, the primary container refrigeration unit supplier in the
United States.

     The Registrant's tank containers were purchased mainly from United Kingdom
manufacturers.

     As of December 31, 2000, the Registrant owned 4,493 twenty-foot, 1,490
forty-foot and 1,748 forty-foot high-cube marine dry cargo containers, as well
as 89 twenty-foot and 299 forty-foot high-cube refrigerated marine cargo
containers, and 52 twenty-four thousand-liter tank containers. The following
table sets forth the number of containers on lease, by container type and lease
type as of December 31, 2000:

<TABLE>
<CAPTION>

                                                                           Number of
                                                                      Containers on Lease
                                                                      -------------------
        <S>                                                           <C>
        20-Foot Dry Cargo Containers:
            Term Leases                                                          498
            Master Leases                                                      2,758
                                                                               -----
                 Total on lease                                                3,256
                                                                               =====

        40-Foot Dry Cargo Containers:
            Term Leases                                                          452
            Master Leases                                                        725
                                                                               -----
                 Total on lease                                                1,177
                                                                               =====

        40-Foot High-Cube Dry Cargo Containers:
            Term Leases                                                          746
            Master Leases                                                        786
                                                                               -----
                 Total on lease                                                1,532
                                                                               =====

        20-Foot Refrigerated Cargo Containers:
            Term Leases                                                           45
            Master Leases                                                         42
                                                                               -----
                 Total on lease                                                   87
                                                                               =====

        40-Foot High-Cube Refrigerated Cargo Containers:
            Term Leases                                                          214
            Master Leases                                                         75
                                                                               -----
                 Total on lease                                                  289
                                                                               =====

        24,000-Liter Tank Containers:
            Term Leases                                                           22
            Master Leases                                                         12
                                                                               -----
                 Total on lease                                                   34
                                                                               =====

</TABLE>


                                       6

<PAGE>   7

     The Leasing Company makes payments to the Registrant based upon rentals
collected from ocean carriers after deducting certain operating expenses
associated with the containers, such as the base management fee payable to CCL,
certain expense reimbursements payable to CCC and CCL, incentive fees payable to
CCC, the costs of maintenance and repairs not performed by lessees, independent
agent fees and expenses, depot expenses for handling, inspection and storage,
and additional insurance.

     REPAIR AND MAINTENANCE

     All containers are inspected and repaired when redelivered by a customer,
and customers are obligated to pay for all damage repair, excluding wear and
tear, according to standardized industry guidelines. Depots in major port areas
perform repair and maintenance that is verified by independent surveyors or the
Leasing Company's technical and operations staff. Before any repair or
refurbishment is authorized on older containers in the Registrant's fleet, the
Leasing Company's technical and operations staff reviews the age, condition and
type of container, and its suitability for continued leasing. The Leasing
Company compares the cost of such repair or refurbishment with the prevailing
market resale price that might be obtained for that container and makes the
appropriate decision whether to repair or sell the container.

     The Leasing Company is authorized to make this decision on behalf of the
Registrant and makes these decisions by applying the same standards to the
Registrant's containers as to its own containers.

     MARKET FOR USED CONTAINERS

     The Registrant estimates that the period for which a dry cargo or
refrigerated container may be used as a leased marine cargo container ranges
from 10 to 15 years. Tank containers generally may be used for 12 to 18 years.
The Leasing Company, on behalf of the Registrant, disposes of used containers in
a worldwide market in which buyers include wholesalers, mini-storage operations,
construction companies and others. As the Registrant's fleet ages, a larger
proportion of its revenue will be derived from selling its containers.

     OPERATIONS

     The Registrant's container leasing and marketing operations are conducted
through the Leasing Company in the United Kingdom, with support provided by area
offices and dedicated agents located in San Francisco, California; Iselin, New
Jersey; Hamburg; Antwerp; Genoa; Gothenburg, Sweden; Singapore; Hong Kong;
Sydney; Tokyo; Taipei; Seoul; Rio de Janeiro; Shanghai and Madras, India.

     The Leasing Company also maintains agency relationships with over 25
independent agents around the world, who are generally paid commissions based
upon the amount of revenues they generate in the region or the number of
containers that are leased from their area. The agents are located in
jurisdictions where the volume of the Leasing Company's business necessitates a
presence in the area but is not sufficient to justify a fully-functioning
Leasing Company office or dedicated agent. Agents provide marketing support to
the area offices covering the region, together with limited operational support.

     In addition, the Leasing Company relies on the services of over 300
independently-owned and operated depots around the world to inspect, repair,
maintain and store containers while off-hire. The Leasing Company's area offices
authorize all container movements into and out of the depot and supervise all
repair and maintenance performed by the depot. The Leasing Company's technical
staff sets the standards for repair of its owned and managed fleet throughout
the world and monitors the quality of depot repair work. The depots provide a
vital link to the Leasing Company's operations, as the redelivery of a container
into a depot is the point at which the container is off-hired from one customer
and repaired in preparation for re-leasing to the next.

     The Leasing Company's global network is integrated with its computer system
and provides 24-hour communication between offices, agents and depots. The
system allows the Leasing Company to manage and control the Registrant's fleet
on a global basis, providing it with the responsiveness and flexibility
necessary to service the master lease market effectively. This system is an
integral part of the Leasing Company's service, as it processes information
received from the various offices, generates billings to the Leasing Company's
lessees and generates a wide range of reports on all aspects of the Leasing
Company's leasing activities. The system records the life history of each
container, including the length of time on and off lease and repair costs, as
well as port activity trends, leasing activity and equipment data per customer.
The operations and marketing data is fully interfaced with the finance and
accounting system to provide revenue, cost and asset information to management
and staff around the world. The Leasing Company intends to continue to enhance
its computer system as needs arise in the future.


                                       7

<PAGE>   8

     INSURANCE

     The Registrant's lease agreements typically require lessees to obtain
insurance to cover all risks of physical damage and loss of the equipment under
lease, as well as public liability and property damage insurance. However, the
precise nature and amount of the insurance carried by each ocean carrier varies
from lessee to lessee. In addition, the Registrant has purchased secondary
insurance effective in the event that a lessee fails to have adequate primary
coverage. This insurance covers liability arising out of bodily injury and/or
property damage as a result of the ownership and operation of the containers, as
well as insurance against loss or damage to the containers, loss of lease
revenues in certain cases and costs of container recovery and repair in the
event that a customer goes into bankruptcy. The Registrant believes that the
nature and the amounts of its insurance are customary in the container leasing
industry and subject to standard industry deductions and exclusions.

     (c)(1)(ii) Inapplicable.

     (c)(1)(iii) Inapplicable.

     (c)(1)(iv) Inapplicable.

     (c)(1)(v) The Registrant's containers are leased globally; therefore,
seasonal fluctuations are minimal. Other economic and business factors to which
the transportation industry in general and the container leasing industry in
particular are subject, include fluctuations in general business conditions and
fluctuations in supply and demand for equipment resulting from, among other
things, obsolescence, changes in the methods or economics of a particular mode
of transportation or changes in governmental regulations or safety standards.

     (c)(1)(vi) The Registrant established a working capital reserve of
approximately 1% of subscription proceeds raised. In addition, the Registrant
may reserve additional amounts from anticipated cash distributions to the
partners to meet working capital requirements.

     Amounts due under master leases are calculated at the end of each month and
billed approximately six to eight days thereafter. Amounts due under short-term
and long-term leases are set forth in the respective lease agreements and are
generally payable monthly. However, payment is normally received within 45-100
days of billing. Past due penalties are not customarily collected from lessees
and, accordingly, are not generally levied by the Leasing Company against
lessees of the Registrant's containers.

     (c)(1)(vii) For the fiscal year ended December 31, 2000, one sub-lessee of
the Leasing Company accounted for approximately 12% or $535,208 of the
Registrant's rental revenue billings. The Registrant does not believe that its
ongoing business is dependent upon a single customer, although the loss of one
or more of its largest customers could have an adverse effect upon its business.

     (c)(1)(viii) Inapplicable.

     (c)(1)(ix) Inapplicable.

     (c)(1)(x) Competition among container leasing companies is based upon
several factors, including the location and availability of inventory, lease
rates, the type, quality and condition of the containers, the quality and
flexibility of the service offered and the confidence in and professional
relationship with the lessor. Other factors include the speed with which a
leasing company can prepare its containers for lease and the ease with which a
lessee believes it can do business with a lessor or its local area office. Not
all container leasing companies compete in the same market, as some supply only
dry cargo containers and not specialized containers, while others offer only
long-term leases.

     The Leasing Company, on behalf of the Registrant, competes with various
container leasing companies in the markets in which it conducts business,
including Transamerica Leasing, GE-Seaco, Textainer Corp., Triton Container
International Ltd. and others. Mergers and acquisitions have been a feature of
the container leasing industry for over a decade and the leasing market is
essentially comprised of three distinct groups: the very large (in TEU terms)
market leaders Transamerica Leasing and GE Seaco, who between them, with fleets
of around 1.1 million TEU each in mid-2000, control in excess of one third of
the total leased fleet; a substantial middle tier of companies possessing fleets
in the 250,000 to 900,000 TEU range, and the smaller more specialized fleet
operators. In recent years, several major leasing companies, as well as numerous
smaller ones, have been acquired by competitors. The Leasing Company believes
that the current trend toward consolidation in the container leasing industry
will continue, up to a point. There appears to be an upper limit to


                                       8

<PAGE>   9

the size of the optimum fleet, beyond which dis-economies of scale and/or
barriers against further market share development become apparent. Furthermore,
ocean carriers have a tendency to support a number of lessors simultaneously, in
order to maximize competition and increase the number of available locations for
redelivery of containers. Economies of scale, worldwide operations, diversity,
size of fleet and financial strength are increasingly important to the
successful operation of a container leasing business. Additionally, as
containerization grows, and as regions such as South America and the Indian
sub-continent become ever bigger generators of containerized cargo, customers
may demand more flexibility from leasing companies regarding per-diem rates,
pick-up and drop-off locations, and the availability of containers.

     In recent years, the Leasing Company and other lessors have developed
certain internet based applications. For the Leasing Company, these applications
will allow customers access to make on-line product inquiries. The Leasing
Company is continuing to develop this side of business and will introduce other
internet options in the future, including on-line bookings for all products.

     Some of the Leasing Company's competitors with larger fleets have greater
financial resources than the Leasing Company and may be more capable of offering
lower per diem rates. In the Leasing Company's experience, however, ocean
carriers will generally lease containers from more than one leasing company in
order to minimize dependence on a single supplier. Furthermore, by having as
many suppliers as possible, the carrier is able to maximize the number of
off-hires and off-hire locations available, as typically each supplier may limit
the number of containers which can be off-hired by location. The advantage to
the carrier is that this prevents the carrier from being burdened with an excess
number of off-hired containers, which incur both storage and per diem charges,
in a low demand market.

     (c)(1)(xi) Inapplicable.

     (c)(1)(xii) Environmental Matters

     A portion of the Registrant's equipment portfolio consists of special
purpose containers, primarily refrigerated containers. Historically,
refrigerated containers have utilized a refrigerant gas which is a
chlorofluorocarbon ("CFC") compound. Countries that are signatories to the
Montreal Protocol in the environment agreed in November 1992 to restrict the use
of environmentally destructive refrigerants, banning production (but not use) of
CFCs beginning in January 1996. CFCs are used in the operation, insulation and
manufacture of refrigerated containers. All of the Leasing Company's
refrigerated containers purchased since June 1993 use non-CFC refrigerant gas in
the operation and insulation of the containers, although a reduced quantity of
CFCs is still used in the container manufacturing process. The replacement
refrigerant used in the Leasing Company's new refrigerated containers may also
become subject to similar governmental regulations. Depending on market
pressures and future governmental regulations, the Registrant's refrigerated
containers may have to be retrofitted with non-CFC refrigerants, the cost of
which will be borne by the Registrant. The Leasing Company's technical staff has
cooperated with refrigeration manufacturers in conducting investigations into
the most effective and economical retrofit plan. CCC and the Leasing Company
believe that this expense, should it be required, would not be material to the
Registrant's financial position or results of operations. In addition,
refrigerated containers that are not retrofitted may command lower prices in the
used container market.

     (c)(1)(xiii) The Registrant, as a limited partnership, is managed by CCC,
the general partner, and accordingly does not itself have any employees. At
February 28, 2001, CCC had 14 employees, consisting of 3 officers, 4 other
managers and 7 clerical and staff personnel.

     (d) Financial Information About Geographic Areas

     The Registrant's business is not divided between foreign or domestic
operations. The Registrant's business is the leasing of containers worldwide to
ocean carriers. To this extent, the Registrant's operations are subject to the
fluctuations of world economic and political conditions. Such factors may affect
the pattern and levels of world trade.

     The Registrant believes that the profitability of, and risks associated
with, leases to foreign customers is generally the same as those of leases to
domestic customers. The Leasing Company's leases generally require all payments
to be made in United States currency.


                                       9

<PAGE>   10

Item 2. Properties

     As of December 31, 2000, the Registrant owned 4,493 twenty-foot, 1,490
forty-foot and 1,748 forty-foot high-cube marine dry cargo containers, as well
as 89 twenty-foot and 299 forty-foot high-cube refrigerated cargo containers,
and 52 twenty-four thousand-liter tanks, suitable for transporting cargo by
rail, sea or highway. The average useful life and manufacturers' invoice cost of
the Registrant's fleet as of December 31, 2000 was as follows:

<TABLE>
<CAPTION>

                                                               Estimated
                                                              Useful Life          Average Age          Average Cost
                                                              -----------          -----------          ------------
    <S>                                                       <C>                  <C>                  <C>
    20-Foot Dry Cargo Containers                              10-15 years             4 years           $ 2,324

    40-Foot Dry Cargo Containers                              10-15 years             3 years           $ 3,301

    40-Foot High-Cube Dry Cargo Containers                    10-15 years             2 years           $ 2,921

    20-Foot Refrigerated Cargo Containers                     10-15 years             5 years           $22,159

    40-Foot High-Cube Refrigerated Cargo Containers           10-15 years             5 years           $26,938

    24,000-Liter Tanks                                        12-18 years             5 years           $26,660

</TABLE>

     During 2000, the Registrant invested a portion of its cash generated from
sales proceeds to replace containers which had been lost or damaged beyond
repair by purchasing 96 new forty-foot high-cube marine dry cargo containers at
an aggregate manufacturer's invoice cost of $266,240.

     Additionally, pursuant to the Registrant's Partnership Agreement, the
Registrant borrowed $5,043,600 under a term loan to acquire 700 twenty-foot, 450
forty-foot and 1,200 forty-foot high-cube marine dry cargo containers.

     Utilization by lessees of the Registrant's containers fluctuates over time
depending on the supply of and demand for containers in the Registrant's
inventory locations. During 2000, utilization of the dry cargo, refrigerated and
tank container fleet averaged 84%, 98% and 72%, respectively.

     During 2000, the Registrant disposed of 22 twenty-foot, five forty-foot and
four forty-foot high-cube marine dry cargo containers, as well as one
twenty-foot refrigerated container, at an average book loss of $106 per
container.


                                       10

<PAGE>   11

Item 3. Legal Proceedings


     On March 20, 2000, KM Investments, LLC, a California limited liability
company ("KM") filed a complaint in the Superior Court for the County of Los
Angeles against CCC, as general partner of the Registrant, alleging violation of
the California Revised Limited Partnership Act, breach of fiduciary duty, and
unfair competition. KM is assignee of units of limited partnership interests in
the Registrant and six other California limited partnerships (collectively, the
"Cronos Partnerships") managed by CCC, as general partner. KM, which is in the
business of making unregistered tender offers for up to 4.9% of the outstanding
limited partnership interests in limited partnerships, claimed that CCC had
wrongfully refused to provide KM with lists of the limited partners of the
Cronos Partnerships to enable KM to make unregistered tender offers to the
limited partners of the Cronos Partnerships. KM asked for declaratory relief,
damages according to proof, attorneys' fees, costs, interest, and a temporary
restraining order and/or a preliminary injunction barring CCC from giving
limited partner lists to any other party before delivering such lists to KM.


     After the Court heard challenges by CCC to KM's complaint and its first
amended complaint, which challenges were granted in part and denied in part, CCC
filed its answer to KM's first amended complaint on October 20, 2000, denying
the allegations thereof, denying that KM was entitled to any damages, and
asserting various affirmative defenses. Before conducting expensive discovery,
the parties engaged in settlement discussions, which were consummated subsequent
to December 31, 2000, when the parties agreed to the terms of a settlement.
Under the terms of the settlement, CCC will provide copies of the limited
partner lists of the Cronos Partnerships to KM, in return for a payment by KM
and KM's covenant to provide copies of any mini-tender offer materials to CCC
concurrently with their transmission by KM to the limited partners of the Cronos
Partnerships. KM has also agreed to pay for tendered limited partner units
within three (3) business days of confirmation of the transfer from CCC. The
parties have agreed to broad reciprocal releases as part of the settlement. The
settlement entails no payments by CCC or by the Cronos Partnerships to KM.


Item 4. Submission of Matters to a Vote of Security Holders

     Inapplicable.


                                       11

<PAGE>   12

                                     PART II


Item 5. Market for Registrant's Common Equity and Related Stockholder Matters

     (a) Market Information

     (a)(1)(i) The Registrant's outstanding units of limited partnership
interests are not traded on any market nor does an established public trading
market exist for such purposes.

     (a)(1)(ii) Inapplicable.

     (a)(1)(iii) Inapplicable.

     (a)(1)(iv) Inapplicable.

     (a)(1)(v) Inapplicable.

     (a)(2) Inapplicable.

     (b) Holders

<TABLE>
<CAPTION>
                                                              Number of Unit Holders
     (b)(1)     Title of Class                                  as of December 31, 2000
              --------------                                  -----------------------
 <S>                                                          <C>
              Units of limited partnership interests                   1,748
</TABLE>

     (c) Dividends

     Inapplicable. For the distributions made by the Registrant to its limited
partners, see Item 6, "Selected Financial Data."


                                       12

<PAGE>   13

Item 6. Selected Financial Data
<TABLE>
<CAPTION>

                                                                                                               For the period
                                                                                                               March 29, 1996
                                                        Year Ended December 31,                               (Commencement of
                                  ---------------------------------------------------------------------         Operations)
                                      2000               1999              1998              1997            to December 31, 1996
                                  --------------     -------------     --------------    --------------    ------------------------
<S>                               <C>                <C>                <C>               <C>               <C>
Net lease revenue                 $ 3,563,609        $ 2,661,170        $ 3,021,343       $ 3,050,730           $ 1,270,940

Net income                        $ 1,432,067        $ 1,014,965        $ 1,435,413       $ 1,459,018           $   384,407

Net income per unit of
    limited partnership interest  $      0.82        $      0.56        $      0.82       $      0.84           $      0.37

Cash distributions per unit of
    limited partnership interest  $      1.60        $      1.54        $      1.50       $      1.46           $      0.67

At year-end:

Total assets                      $27,024,135        $23,627,945        $25,208,928       $26,299,300           $26,000,310

Partners' capital                 $22,365,835        $23,627,945        $25,208,928       $26,299,300           $25,641,525

</TABLE>

Item 7. Management's Discussion and Analysis of Financial Condition and Results
        of Operations

LIQUIDITY AND CAPITAL RESOURCES

     The Registrant's primary objective is to generate cash flow from operations
for distribution to its limited partners. Aside from the initial working capital
reserve retained from gross subscription proceeds (equal to approximately 1% of
such proceeds), the Registrant relies primarily on net lease revenue receipts to
meet this objective. No credit lines are maintained to finance working capital.

     At December 31, 2000, the Registrant had $1,379,619 in cash and cash
equivalents, a decrease of $608,266 and $464,193, respectively, from the cash
balances at December 31, 1999 and 1998. Throughout the remainder of 2001, the
Registrant may use cash generated from equipment sales to purchase and replace
additional containers which had been lost or damaged beyond repair. Amounts not
used to purchase and replace containers may be distributed to its partners.

     During 2000, the Registrant borrowed $5,043,600 under a term loan for the
purpose of acquiring additional equipment. The term loan was obtained from one
lending source allowing the Registrant to take advantage of equipment purchasing
opportunities pursuant to the Registrant's agreement. The loan, due to expire in
the year 2006, is scheduled to be repaid in twenty-four quarterly installments
from the Registrant's cash generated from operations. At December 31, 2000,
twenty-two installments remained. Additionally, as a condition to the loan's
initial closing, the Registrant was required to place a restricted deposit of
$750,000 in an account with the lender. Interest on this deposit is remitted to
the Registrant on a quarterly basis. This deposit is reflected as part of the
Registrant's Other Assets.

     Cash distributions from operations are allocated 5% to the general partner
and 95% to the limited partners. Distributions of sales proceeds are allocated
1% to the general partner and 99% to the limited partners. This sharing
arrangement will remain in place until the limited partners have received
aggregate distributions in an amount equal to their capital contributions plus
an 8% cumulative, compounded (daily) annual return on their adjusted capital
contributions. Thereafter, all distributions will be allocated 15% to the
general partner and 85% to the limited partners, pursuant to Section 6.1(b) of
the Registrant's Partnership Agreement. Cash distributions from operations to
the general partner in excess of 5% of distributable cash will be considered an
incentive fee and compensation to the general partner.

     From inception through February 28, 2001, the Registrant has distributed
$10,802,689 in cash from operations to its limited partners, or 34% of the
limited partners' original invested capital. Distributions are paid monthly
based primarily on each quarter's cash flow from operations. Monthly
distributions are also affected by periodic increases or decreases to working
capital reserves, as deemed appropriate by the general partner.


                                       13

<PAGE>   14

RESULTS OF OPERATIONS

2000 - 1999

     During the first three quarters of 2000, growth in the volume of
containerized trade improved, resulting in increased demand for containers in
many locations, most significantly throughout Asia. Over the course of the final
quarter, the economic slowdown that was reported in the United States and other
worldwide locations began to affect the import and export markets of many
countries, as well as the container leasing markets worldwide. Late in the
fourth quarter of 2000, off-hire container inventories grew as redeliveries of
leased equipment increased significantly and demand declined due to reduced
export volumes, particularly within Asia. The soft market conditions at the end
of 2000 were further impacted by the shipping lines' continued purchase of new
containers for their own accounts, thereby reducing the need to supplement their
own container fleet with leased containers. Furthermore, the shipping lines
focused their efforts on repositioning their own idle containers to demand
locations in order to fulfill customer requirements. The registrant expects
these market conditions to continue through the first half of 2001.

     The primary component of the Registrant's results of operations is net
lease revenue. Net lease revenue is determined by deducting direct operating
expenses, management fees and reimbursed administrative expenses, from rental
revenues billed by the Leasing Company from the leasing of the Registrant's
containers. Net lease revenue is directly related to the size, utilization and
per-diem rental rates of the Registrant's fleet. Net lease revenue for 2000
increased by approximately 34%, when compared to 1999.

     Gross rental revenue, a component of net lease revenue, increased from
$3,733,116 in 1999 to $4,809,823 in 2000. This increase was primarily the result
of a larger fleet size, and higher utilization levels, which were partially
offset by lower per-diem rates. The Registrant's fleet size, as measured in
twenty-foot equivalent units ("TEU"), and average utilization rates for the
years ended December 31, 2000 and December 31, 1999 were as follows:

<TABLE>
<CAPTION>

                                                                              2000            1999
                                                                        ---------------    ----------
       <S>                                                              <C>                <C>
       Fleet size (measured in twenty-foot equivalent units (TEU))
            Dry cargo containers                                               7,731          6,817
            Refrigerated containers                                              388            688
            Tank containers                                                       52             52

       Average utilization rates for the year
            Dry cargo containers                                                 83.6%         76.9%
            Refrigerated containers                                              97.6%         98.5%
            Tank containers                                                      72.0%         73.0%
</TABLE>

Rental operating expenses were approximately 15% of rental revenue during 2000
as compared to 17% during 1999. The decrease was attributable to the
Registrant's higher utilization rate in 2000, and its impact on activity based
expenses such as storage and handling. Base management fees, dependent on the
operating performance of the fleet, increased $66,266, or approximately 26%
during 2000 when compared to 1999.

During 2000, the Registrant borrowed $5,043,600 under a term loan for the
purpose of acquiring additional equipment. Accordingly, the Registrant incurred
interest expense of $300,971. Interest expense will decline in subsequent
periods as the Registrant reduces the outstanding loan balance in accordance
with its repayment schedule.

The Registrant disposed of 23 twenty-foot, 5 forty-foot and 4 forty-foot
high-cube marine dry cargo containers during 2000, as compared to 18
twenty-foot, one forty-foot and three forty-foot high-cube marine dry cargo
containers during 1999. These disposals resulted in net loss of $3,402 for 2000,
as compared to a net gain of $8,514 for 1999. The Registrant believes that the
net gain or loss on container disposals are a result of various factors
including the age, condition, suitability for continued leasing, as well as the
geographical location of the containers when disposed. These factors will
continue to influence the decision to repair or dispose of a container when it
is returned by a lessee, as well as the amount of sales proceeds received and
the related gain or loss on container disposals. The level of the Registrant's
container disposals in subsequent periods will also contribute to fluctuations
in the net gain or loss on disposals.


                                       14

<PAGE>   15

1999 - 1998

     Net lease revenue for 1999 decreased by approximately 12%, when compared to
1998. Gross rental revenue, a component of net lease revenue, decreased from
$4,207,953, from December 31, 1998, to $3,733,116 for December 31, 1999, a
decrease of 11%. Dry cargo and refrigerated container average per-diem rental
rates declined approximately 9% and 3%, respectively, when compared to the prior
year. Tank container average per-diem rental rates decreased 7% when compared to
the prior year.

     The Registrant's fleet size, as measured in twenty-foot equivalent units
("TEU"), and average utilization rates for the years ended December 31, 1999 and
December 31, 1998 were as follows:


<TABLE>
<CAPTION>
                                                                              1999            1998
                                                                        ---------------    ----------
       <S>                                                              <C>                <C>
       Fleet size (measured in twenty-foot equivalent units (TEU))
            Dry cargo containers                                              6,817            6,847
            Refrigerated containers                                             688              688
            Tank containers                                                      52               52

       Average utilization rates for the year
            Dry cargo containers                                               76.9%            80.5%
            Refrigerated containers                                            98.5%            98.3%
            Tank containers                                                    73.0%            84.4%
</TABLE>

     Rental equipment operating expenses were approximately 17% of rental
revenue during 1999 as compared to 16% during 1998. Base management fees,
dependent on the operating performance of the fleet, decreased $31,821, or
approximately 11%, during 1999 when compared to 1998.


                                       15

<PAGE>   16

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Interest rate risk: Outstanding borrowings are subject to interest rate risk. At
December 31, 2000, 100% of total borrowings had floating interest rates. The
Registrant conducted an analysis of variable interest rate borrowing to
determine its sensitivity to interest rate changes. In this analysis, the same
change was applied to the current balance outstanding, leaving all other factors
constant. It was found that if a 10% increase were applied to market rates, the
expected effect would not significantly reduce annual cash flows of the
Registrant.

Item 8. Financial Statements and Supplementary Data



                                       16
<PAGE>   17

                          INDEPENDENT AUDITORS' REPORT


The Partners
Cronos Global Income Fund XVI, L.P.


We have audited the accompanying balance sheets of Cronos Global Income Fund
XVI, L.P. (the "Partnership") as of December 31, 2000 and 1999, and the related
statements of operations, partners' capital, and cash flows for the years then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Partnership at December 31, 2000 and
1999, and the results of its operations and its cash flows for the years then
ended in conformity with accounting principles generally accepted in the United
States of America.


/s/ Deloitte & Touche LLP

San Francisco, CA
February 16, 2001










                                       17
<PAGE>   18

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


The Partners
Cronos Global Income Fund XVI, L.P.


We have audited the accompanying statement of operations, partners' capital, and
cash flows of Cronos Global Income Fund XVI, L.P. (the "Partnership") for the
year ended December 31, 1998. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the results of operations of the Partnership and its cash
flows for the year ended December 31, 1998, in conformity with accounting
principles generally accepted in the United States of America.

                                              /s/ Moore
                                              Stephens, P.C.
                                              Certified Public Accountants

New York, New York
March 5, 1999














                                       18
<PAGE>   19

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                                 BALANCE SHEETS

                           DECEMBER 31, 2000 AND 1999


<TABLE>
<CAPTION>
                                                                         2000               1999
                                                                     ------------       ------------
<S>                                                                  <C>                <C>
              Assets
Current assets:
    Cash and cash equivalents, includes $1,132,938 in 2000 and
       $1,987,785 in 1999 in interest-bearing accounts (note 3)      $ 1,379,619       $ 1,987,885
    Net lease receivables due from Leasing Company
       (notes 1 and 5)                                                   262,463           513,262
                                                                     -----------       -----------

     Total current assets                                              1,642,082         2,501,147
                                                                     -----------       -----------

Container rental equipment, at cost                                   31,851,392        26,618,929
    Less accumulated depreciation (note 1)                             7,337,421         5,542,131
                                                                     -----------       -----------
       Net container rental equipment                                 24,513,971        21,076,798
                                                                     -----------       -----------

Other assets                                                             868,082            50,000
                                                                     -----------       -----------

     Total assets                                                    $27,024,135       $23,627,945
                                                                     ===========       ===========
         Liabilities and Partners' Capital
Current liabilities:
    Interest payable                                                 $    35,000       $         -
    Current portion of equipment debt (note 6)                           840,600                 -
                                                                     -----------       -----------

     Total current liabilities                                           875,600                 -
Equipment debt less current portion (note 6)                           3,782,700                 -
                                                                     -----------       -----------

     Total liabilities                                                 4,658,300                 -
                                                                     -----------       -----------
Partners' capital (deficit):
    General partner                                                      (25,351)          (12,730)
    Limited partners (note 10)                                        22,391,186        23,640,675
                                                                     -----------       -----------

     Total partners' capital                                          22,365,835        23,627,945
                                                                     -----------       -----------

     Total liabilities and partners' capital                         $27,024,135       $23,627,945
                                                                     ===========       ===========
</TABLE>







   The accompanying notes are an integral part of these financial statements.


                                       19
<PAGE>   20


                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                            STATEMENTS OF OPERATIONS

              FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998



<TABLE>
<CAPTION>
                                                          2000              1999             1998
                                                      -----------       -----------      -----------
<S>                                                   <C>               <C>              <C>
Net lease revenue (notes 1 and 8)                     $ 3,563,609       $ 2,661,170      $ 3,021,343

Other operating expenses:
   Depreciation and amortization (notes 1 and 4)        1,824,630         1,689,585        1,612,071
   Other general and administrative expenses               82,336            53,798           65,020
                                                      -----------       -----------      -----------
                                                        1,906,966         1,743,383        1,677,091
                                                      -----------       -----------      -----------
     Income from operations                             1,656,643           917,787        1,344,252
                                                      ===========       ===========      ===========
Other income (expenses):
   Interest income                                         79,797            88,664           80,849
   Interest expense                                      (300,971)                -                -
   Net (loss) gain on disposal of equipment                (3,402)            8,514           10,312
                                                      -----------       -----------      -----------
                                                         (224,576)           97,178           91,161
                                                      -----------       -----------      -----------
     Net income                                       $ 1,432,067       $ 1,014,965      $ 1,435,413
                                                      ===========       ===========      ===========
Allocation of net income:
   General partner                                    $   122,087       $   122,416      $   125,593
   Limited partners                                     1,309,980           892,549        1,309,820
                                                      -----------       -----------      -----------
                                                      $ 1,432,067       $ 1,014,965      $ 1,435,413
                                                      ===========       ===========      ===========

Limited partners' per unit share of net income        $      0.82       $      0.56      $      0.82
                                                      ===========       ===========      ===========
</TABLE>













   The accompanying notes are an integral part of these financial statements.


                                       20
<PAGE>   21

                      CRONOS GLOBAL INCOME FUND XVI, L.P.

                         STATEMENTS OF PARTNERS' CAPITAL

              FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998


<TABLE>
<CAPTION>
                                        Limited            General
                                        Partners           Partner             Total
                                     ------------       ------------       ------------
<S>                                  <C>                <C>                <C>
Balances at December 31, 1997        $ 26,303,953       $     (4,653)      $ 26,299,300

Net income                              1,309,820            125,593          1,435,413

Cash distributions                     (2,399,496)          (126,289)        (2,525,785)
                                     ------------       ------------       ------------

Balances at December 31, 1998          25,214,277             (5,349)        25,208,928

Net income                                892,549            122,416          1,014,965

Cash distributions                     (2,466,151)          (129,797)        (2,595,948)
                                     ------------       ------------       ------------

Balances at December 31, 1999          23,640,675            (12,730)        23,627,945

Net income                              1,309,980            122,087          1,432,067

Cash distributions                     (2,559,469)          (134,708)        (2,694,177)
                                     ------------       ------------       ------------

Balances at December 31, 2000        $ 22,391,186       $    (25,351)      $ 22,365,835
                                     ============       ============       ============
</TABLE>













   The accompanying notes are an integral part of these financial statements.


                                       21
<PAGE>   22

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                            STATEMENTS OF CASH FLOWS

              FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998



<TABLE>
<CAPTION>
                                                                    2000              1999              1998
                                                                -----------       -----------       -----------
<S>                                                             <C>               <C>               <C>
Cash flows from operating activities:
    Net income                                                  $ 1,432,067       $ 1,014,965       $ 1,435,413
    Adjustments to reconcile net income to net cash from
      operating activities:
          Depreciation and amortization                           1,824,630         1,689,585         1,612,071
          Net loss (gain) on disposal of equipment                    3,402            (8,514)          (10,312)
          Decrease (increase) in net lease receivables due
             from Leasing Company                                   209,792           (24,760)           20,548
          Increase in interest payable                               35,000                 -                 -
                                                                -----------       -----------       -----------

              Total adjustments                                   2,072,824         1,656,311         1,622,307
                                                                -----------       -----------       -----------

              Net cash provided by operating activities           3,504,891         2,671,276         3,057,720
                                                                -----------       -----------       -----------

Cash flows from investing activities:
    Proceeds from sale of container rental equipment                108,268            68,745            79,718
    Purchases of container rental equipment                      (5,309,840)                -                 -
    Acquisition fees paid to general partner                        (13,312)                -                 -
                                                                -----------       -----------       -----------

              Net cash (used in) provided by investing
                activities                                       (5,214,884)           68,745            79,718
                                                                -----------       -----------       -----------

Cash flows from financing activities:
    Proceeds from issuance of term debt                           5,043,600                 -                 -
    Repayments of term debt                                        (420,300)                -                 -
    Cash deposits (restricted)                                     (750,000)                -                 -
    Payment of loan origination costs                               (77,396)                -                 -
    Distributions to partners                                    (2,694,177)       (2,595,948)       (2,525,785)
                                                                -----------       -----------       -----------

              Net cash provided by (used in) financing
                activities                                        1,101,727        (2,595,948)       (2,525,785)
                                                                -----------       -----------       -----------

Net (decrease) increase in cash and cash equivalents               (608,266)          144,073           611,653

Cash and cash equivalents at beginning of year                    1,987,885         1,843,812         1,232,159
                                                                -----------       -----------       -----------

Cash and cash equivalents at end of year                        $ 1,379,619       $ 1,987,885       $ 1,843,812
                                                                ===========       ===========       ===========

Supplementary disclosure of cash flow information:
    Cash paid during the year for interest                      $   265,971    $            -    $            -
                                                                ===========       ===========       ===========
</TABLE>



   The accompanying notes are an integral part of these financial statements.


                                       22
<PAGE>   23


                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 2000, 1999 AND 1998


(1)   Summary of Significant Accounting Policies

      (a)  Nature of Operations

           Cronos Global Income Fund XVI, L.P. (the "Partnership") is a limited
           partnership organized under the laws of the State of California on
           September 1, 1995, for the purpose of owning and leasing marine cargo
           containers, special purpose containers and container related
           equipment worldwide to ocean carriers. To this extent, the
           Partnership's operations are subject to the fluctuations of world
           economic and political conditions. Such factors may affect the
           pattern and levels of world trade. The Partnership believes that the
           profitability of, and risks associated with, leases to foreign
           customers is generally the same as those of leases to domestic
           customers. The Partnership's leases generally require all payments to
           be made in United States currency.

           Cronos Capital Corp. ("CCC") is the general partner and, with its
           affiliate Cronos Containers Limited (the "Leasing Company"), manages
           the business of the Partnership. CCC and the Leasing Company also
           manage the container leasing business for other partnerships
           affiliated with the general partner. The Partnership shall continue
           until December 31, 2015, unless sooner terminated upon the occurrence
           of certain events.

           The Partnership commenced operations on March 29, 1996, when the
           minimum subscription proceeds of $2,000,000 were received from over
           100 subscribers (excluding from such count Pennsylvania residents,
           the general partner, and all affiliates of the general partner). On
           February 3, 1997, CCC suspended the offer and sale of units in the
           Partnership. The offering terminated on December 27, 1997, at which
           time 1,599,667 limited partnership units had been sold.

      (b)  Leasing Company and Leasing Agent Agreement

           The Partnership has entered into a Leasing Agent Agreement whereby
           the Leasing Company has the responsibility to manage the leasing
           operations of all equipment owned by the Partnership. Pursuant to the
           Agreement, the Leasing Company is responsible for leasing, managing
           and re-leasing the Partnership's containers to ocean carriers and has
           full discretion over which ocean carriers and suppliers of goods and
           services it may deal with. The Leasing Agent Agreement permits the
           Leasing Company to use the containers owned by the Partnership,
           together with other containers owned or managed by the Leasing
           Company and its affiliates, as part of a single fleet operated
           without regard to ownership. Since the Leasing Agent Agreement meets
           the definition of an operating lease in Statement of Financial
           Accounting Standards (SFAS) No. 13, it is accounted for as a lease
           under which the Partnership is lessor and the Leasing Company is
           lessee.

           The Leasing Agent Agreement generally provides that the Leasing
           Company will make payments to the Partnership based upon rentals
           collected from ocean carriers after deducting direct operating
           expenses and management fees to CCC and the Leasing Company. The
           Leasing Company leases containers to ocean carriers, generally under
           operating leases which are either master leases or term leases
           (mostly one to five years). Master leases do not specify the exact
           number of containers to be leased or the term that each container
           will remain on hire but allow the ocean carrier to pick up and drop
           off containers at various locations, and rentals are based upon the
           number of containers used and the applicable per-diem rate.
           Accordingly, rentals under master leases are all variable and
           contingent upon the number of containers used. Most containers are
           leased to ocean carriers under master leases; leasing agreements with
           fixed payment terms are not material to the financial statements.
           Since there are no material minimum lease rentals, no disclosure of
           minimum lease rentals is provided in these financial statements.


                                       23
<PAGE>   24

      (c)  Concentrations of Credit Risk

           The Partnership's financial instruments that are exposed to
           concentrations of credit risk consist primarily of cash, cash
           equivalents and net lease receivables due from the Leasing Company.
           See note 3 for further discussion regarding the credit risk
           associated with cash and cash equivalents.

           Net lease receivables due from the Leasing Company (see notes 1(b)
           and 5 for discussion regarding net lease receivables) subject the
           Partnership to a significant concentration of credit risk. These net
           lease receivables, representing rentals earned by the Leasing
           Company, on behalf of the Partnership, from ocean carriers after
           deducting direct operating expenses and management fees to CCC and
           the Leasing Company, are remitted by the Leasing Company to the
           Partnership three to four times per month. The Partnership has
           historically never incurred a loss associated with the collectability
           of unremitted net lease receivables due from the Leasing Company.

      (d)  Basis of Accounting

           The Partnership utilizes the accrual method of accounting. Net lease
           revenue is recorded by the Partnership in each period based upon its
           leasing agent agreement with the Leasing Company. Net lease revenue
           is generally dependent upon operating lease rentals from operating
           lease agreements between the Leasing Company and its various lessees,
           less direct operating expenses and management fees due in respect of
           the containers specified in each operating lease agreement.

           The financial statements are prepared in conformity with accounting
           principles generally accepted in the United States of America (GAAP),
           which requires the Partnership to make estimates and assumptions that
           affect the reported amounts of assets and liabilities and disclosure
           of contingent assets and liabilities at the date of the financial
           statements and the reported amounts of revenues and expenses during
           the reporting period. Actual results could differ from those
           estimates.

      (e)  Allocation of Net Income and Partnership Distributions

           Net income has been allocated between general and limited partners in
           accordance with the Partnership Agreement.

           Actual cash distributions differ from the allocations of net income
           between the general and limited partners as presented in these
           financial statements. Partnership distributions are paid to its
           partners (general and limited) from distributable cash from
           operations, allocated 95% to the limited partners and 5% to the
           general partner. Distributions of sales proceeds are allocated 99% to
           the limited partners and 1% to the general partner. The allocations
           remain in effect until such time as the limited partners have
           received from the Partnership aggregate distributions in an amount
           equal to their capital contributions plus an 8% cumulative,
           compounded (daily), annual return on their adjusted capital
           contributions. Thereafter, all Partnership distributions will be
           allocated 85% to the limited partners and 15% to the general partner.
           Cash distributions for the first 8% are charged to partners' capital.
           Cash distributions from operations to the general partner in excess
           of 5% of distributable cash will be considered an incentive fee and
           will be recorded as compensation to the general partner.

      (f)  Acquisition Fees

           Pursuant to the Partnership Agreement, acquisition fees paid to CCC
           are based on 5% of the equipment purchase price. These fees are
           capitalized and included in the cost of the rental equipment.


                                       24
<PAGE>   25

      (g)  Container Rental Equipment

           In accordance with SFAS No. 121, "Accounting for the Impairment of
           Long-Lived Assets and for Long-Lived Assets to Be Disposed Of",
           container rental equipment is considered to be impaired if the
           carrying value of the asset exceeds the expected future cash flows
           from related operations (undiscounted and without interest charges).
           If impairment is deemed to exist, the assets are written down to fair
           value. Depreciation policies are also evaluated to determine whether
           subsequent events and circumstances warrant revised estimates of
           useful lives. There were no reductions to the carrying value of
           container rental equipment during 2000, 1999, and 1998.

           Container rental equipment is depreciated over a twelve-year life on
           a straight line basis to its salvage value, estimated to be 30%.

      (h)  Income Taxes

           The Partnership is not subject to income taxes, consequently no
           provision for income taxes has been made. The Partnership files
           federal and state an annual information tax returns, prepared on the
           accrual basis of accounting. Taxable income or loss is reportable by
           the partners individually.

      (i)  Financial Statement Presentation

           The Partnership has determined that, for accounting purposes, the
           Leasing Agent Agreement is a lease, and the receivables, payables,
           gross revenues and operating expenses attributable to the containers
           managed by the Leasing Company are, for accounting purposes, those of
           the Leasing Company and not of the Partnership. Consequently, the
           Partnership's balance sheets and statements of operations display the
           payments to be received by the Partnership from the Leasing Company
           as the Partnership's receivables and revenues.


(2)   Operating Segment

      The Financial Accounting Standards Board has issued SFAS No. 131,
      "Disclosures about Segments of an Enterprise and Related Information",
      which changes the way public business enterprises report financial and
      descriptive information about reportable operating segments. An operating
      segment is a component of an enterprise that engages in business
      activities from which it may earn revenues and incur expenses, whose
      operating results are regularly reviewed by the enterprise's chief
      operating decision maker to make decisions about resources to be allocated
      to the segment and assess its performance, and about which separate
      financial information is available. Management operates the Partnership's
      container fleet as a homogenous unit and has determined, after considering
      the requirements of SFAS No. 131, that as such it has a single reportable
      operating segment.

      The Partnership derives revenues from dry cargo containers, refrigerated
      containers and tank containers. As of December 31, 2000, the Partnership
      owned 4,493 twenty-foot, 1,490 forty-foot and 1,748 forty-foot high-cube
      marine dry cargo containers, as well as 89 twenty-foot and 299 forty-foot
      refrigerated high-cube cargo containers, and 52 twenty-four thousand-liter
      tanks. A summary of gross lease revenue earned by the Leasing Company, on
      behalf of the Partnership, by product, for the years ended December 31,
      2000, 1999 and 1998 follows:


<TABLE>
<CAPTION>
                                       2000            1999            1998
                                    ----------      ----------      ----------
<S>                                 <C>             <C>             <C>
          Dry cargo containers      $3,228,347      $2,068,065      $2,459,658
          Refrigerated containers    1,424,639       1,493,838       1,521,647
          Tank containers              156,837         171,213         226,648
                                    ----------      ----------      -----------
          Total                     $4,809,823      $3,733,116      $4,207,953
                                    ==========      ==========      ===========
</TABLE>



                                       25
<PAGE>   26

                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                          NOTES TO FINANCIAL STATEMENTS


      Due to the Partnership's lack of information regarding the physical
      location of its fleet of containers when on lease in the global shipping
      trade, it is impracticable to provide the geographic area information
      required by SFAS No. 131.

      One sub-lessee of the Leasing Company contributed approximately 12% or
      $535,208 of the Leasing Company's rental revenue billings earned during
      2000 on behalf of the Partnership. One lessee contributed approximately
      15% and 13% of the rental revenue billings earned during 1999 and 1998,
      respectively.


(3)   Cash and Cash Equivalents

      Cash equivalents include highly-liquid investments with a maturity of
      three months or less on their acquisition date. Cash equivalents are
      carried at cost which approximates fair value. The Partnership maintains
      its cash and cash equivalents in accounts which, at times, may exceed
      federally insured limits. The Partnership has not experienced any losses
      in such accounts and believes it is not exposed to any significant credit
      risk. The Partnership places its cash equivalents in investment grade,
      short-term debt instruments and limits the amount of credit exposure with
      any one commercial issuer.


(4)   Organizational Costs

      The Partnership incurred $249,799 in organizational costs during its
      offering period. These costs were fully amortized as of December 31, 1999.


(5)   Net Lease Receivables Due from Leasing Company

      Net lease receivables due from the Leasing Company are determined by
      deducting direct operating payables and accrued expenses, base management
      fees payable, and reimbursed administrative expenses payable to CCC and
      its affiliates from the rental billings earned by the Leasing Company
      under operating leases to ocean carriers for the containers owned by the
      Partnership. Net lease receivables at December 31, 2000 and 1999 were as
      follows:


<TABLE>
<CAPTION>
                                                       December 31,    December 31,
                                                           2000            1999
                                                       ------------    ------------
        <S>                                            <C>             <C>
        Gross lease receivables                          $879,378        $869,797
        Less:
        Direct operating payables and accrued expenses    307,566         223,001
        Damage protection reserve (note 7)                 99,909          25,021
        Base management fees payable                      119,286          68,101
        Reimbursed administrative expenses                 49,538          16,942
        Allowance for doubtful accounts                    40,616          23,470
                                                         --------        --------
        Net lease receivables                            $262,463        $513,262
                                                         ========        ========
</TABLE>








                                       26
<PAGE>   27

(6)   Equipment Debt

      As of December 31, 2000, the Partnership's existing term loan debt was
      $4,623,300 plus estimated accrued interest of $35,000. On March 30, 2000,
      the Partnership borrowed $5,043,600 under a term loan for the purpose of
      acquiring additional equipment. The loan will be repaid in 22 remaining
      equal quarterly installments plus interest, through May 31, 2006. Interest
      accrues at the rate of 1.75% above the LIBOR rate which is calculated on
      the first day of each quarterly interest period. During 2000, the interest
      rates ranged from 7.88% to 8.58%. The loan is secured by containers owned
      by the Partnership, as well as, any income generated in connection with
      the containers including lease revenue and sales proceeds . A restricted
      deposit of $750,000 is held in an account with the lender as additional
      collateral.

      As of December 31, 2000, the estimated fair value of the term loan debt
      was $4,561,893. The fair value of the term loan has been calculated using
      the market rates prevailing at December 31, 2000.


(7)   Damage Protection Plan

      The Leasing Company offers a repair service to several lessees of the
      Partnership's containers, whereby the lessee pays an additional rental fee
      for the convenience of having the Partnership incur the repair expense for
      containers damaged while on lease. This fee is recorded as revenue when
      earned according to the terms of the rental contract. An accrual has been
      recorded to provide for the estimated costs incurred by this service. This
      accrual is a component of net lease receivables due from the Leasing
      Company (see note 5). The Partnership is not responsible in the event
      repair costs exceed predetermined limits, or for repairs that are required
      for damages not defined by the damage protection plan agreement.


(8)   Net Lease Revenue

      Net lease revenue is determined by deducting direct operating expenses,
      base management fees and reimbursed administrative expenses to CCC and its
      affiliates from the rental revenue earned by the Leasing Company under
      operating leases to ocean carriers for the containers owned by the
      Partnership. Net lease revenue for 2000, 1999 and 1998:


<TABLE>
<CAPTION>
                                                2000            1999            1998
                                             ----------      ----------      ----------
      <S>                                   <C>             <C>             <C>
      Rental revenue                         $4,809,823      $3,733,116      $4,207,953
      Less:
      Rental equipment operating expenses       712,192         636,329         664,018
      Base management fees (note 9)             324,549         258,283         290,104
      Reimbursed administrative expenses
        (note 9):
      Salaries                                  140,759          92,865         110,765
      Other payroll related expenses             12,896          15,861          19,139
      General administrative expenses            55,818          68,608         102,584
                                             ----------      ----------      ----------
                                             $3,563,609      $2,661,170      $3,021,343
                                             ==========      ==========      ==========
</TABLE>









                                       27
<PAGE>   28
                       CRONOS GLOBAL INCOME FUND XVI, L.P.

                          NOTES TO FINANCIAL STATEMENTS

(9)  Compensation to General Partner and its Affiliates

     Base management fees are equal to 7% of gross lease revenues attributable
     to operating leases pursuant to the Partnership Agreement. Reimbursed
     administrative expenses are equal to the costs expended by CCC and its
     affiliates for services necessary for the prudent operation of the
     Partnership pursuant to the Partnership Agreement. The following
     compensation was paid or will be paid by the Partnership to CCC or its
     affiliates:

<TABLE>
<CAPTION>

                                                2000         1999         1998
                                              --------     --------     --------
         <S>                                  <C>          <C>          <C>
         Base management fees                 $324,549     $258,283     $290,104
         Reimbursed administrative expenses    209,473      177,334      232,488
         Acquisition fees                       13,312            -            -
                                              --------     --------     --------
                                              $547,334     $435,617     $522,592
                                              ========     ========     ========
</TABLE>

(10) Limited Partners' Capital

     The limited partners' per unit share of capital at December 31, 2000, 1999
     and 1998 was $14, $15 and $16, respectively. This is calculated by dividing
     the limited partners' capital at the end of 2000, 1999 and 1998 by
     1,599,667, the total number of limited partnership units.

(11) Legal

     On March 20, 2000, KM Investments, LLC, a California limited liability
     company ("KM") filed a complaint in the Superior Court for the County of
     Los Angeles against CCC, as general partner of the Registrant, alleging
     violation of the California Revised Limited Partnership Act, breach of
     fiduciary duty, and unfair competition. KM is assignee of units of limited
     partnership interests in the Registrant and six other California limited
     partnerships (collectively, the "Cronos Partnerships") managed by CCC, as
     general partner. KM, which is in the business of making unregistered tender
     offers for up to 4.9% of the outstanding limited partnership interests in
     limited partnerships, claimed that CCC had wrongfully refused to provide KM
     with lists of the limited partners of the Cronos Partnerships to enable KM
     to make unregistered tender offers to the limited partners of the Cronos
     Partnerships. KM asked for declaratory relief, damages according to proof,
     attorneys' fees, costs, interest, and a temporary restraining order and/or
     a preliminary injunction barring CCC from giving limited partner lists to
     any other party before delivering such lists to KM.

     After the Court heard challenges by CCC to KM's complaint and its first
     amended complaint, which challenges were granted in part and denied in
     part, CCC filed its answer to KM's first amended complaint on October 20,
     2000, denying the allegations thereof, denying that KM was entitled to any
     damages, and asserting various affirmative defenses. Before conducting
     expensive discovery, the parties engaged in settlement discussions, which
     were consummated subsequent to December 31, 2000, when the parties agreed
     to the terms of a settlement. Under the terms of the settlement, CCC will
     provide copies of the limited partner lists of the Cronos Partnerships to
     KM, in return for a payment by KM and KM's covenant to provide copies of
     any mini-tender offer materials to CCC concurrently with their transmission
     by KM to the limited partners of the Cronos Partnerships. KM has also
     agreed to pay for tendered limited partner units within three (3) business
     days of confirmation of the transfer from CCC. The parties have agreed to
     broad reciprocal releases as part of the settlement. The settlement entails
     no payments by CCC or by the Cronos Partnerships to KM.

                            ************************

                                       28
<PAGE>   29

Item 9. Changes in and Disagreements With Accountants on Accounting and
        Financial Disclosure

      Inapplicable.

                                   29
<PAGE>   30

                                    PART III

Item 10. Directors and Executive Officers of the Registrant

      The Registrant, as such, has no officers or directors, but is managed by
CCC, the general partner. The officers and directors of CCC at February 28,
2001, are as follows:

       Name                                        Office
       ----                                        ------
  Dennis J. Tietz          President, Chief Executive Officer and Director
  John Kallas              Vice President, Chief Financial Officer and Director
  Elinor A. Wexler         Vice President/Administration, Secretary and Director
  Peter J. Younger         Director
  John M. Foy              Director

      DENNIS J. TIETZ Mr. Tietz, 48, as President and Chief Executive Officer,
is responsible for the general management of CCC. Mr. Tietz was appointed Chief
Executive Officer of The Cronos Group, indirect corporate parent of CCC, in
December 1998 and elected Chairman of the Board in March 1999. Mr. Tietz is also
President and a director of Cronos Securities Corp. From 1986 until August 1992,
Mr. Tietz was responsible for the organization, marketing and after-market
support of CCC's investment programs. Mr. Tietz was a regional manager for CCC,
responsible for various container leasing activities in the U.S. and Europe from
1981 to 1986. Prior to joining CCC in December 1981, Mr. Tietz was employed by
Trans Ocean Leasing Corporation as Regional Manager based in Houston, with
responsibility for all leasing and operational activities in the U.S. Gulf.

      Mr. Tietz holds a B.S. degree in Business Administration from San Jose
State University and is a Registered Securities Principal with the NASD.

      JOHN KALLAS Mr. Kallas, 38, was elected Vice President, Chief Financial
Officer of CCC in November, 2000. Mr. Kallas also joined the Board of Directors
of CCC in November, 2000. Mr. Kallas has been employed by CCC since 1989, and is
responsible for managed container investment programs, treasury, and CCC's
financial operations. Mr. Kallas has held various accounting positions since
joining Cronos including Controller, Director of Accounting and Corporate
Accounting Manager. From 1985 to 1989, Mr. Kallas was an accountant with KPMG
Peat Marwick, San Francisco.

      Mr. Kallas holds a Masters degree in Finance and Business Administration
from St. Mary's College, a B.S. degree in Business Administration/Accounting
from the University of San Francisco and is a certified public accountant.

      ELINOR A. WEXLER Ms. Wexler, 52, was elected Vice President -
Administration and Secretary of CCC in August 1992. Ms. Wexler joined the Board
of Directors of CCC in June 1997. Ms. Wexler has been employed by CCC since
1987, and is responsible for investor services, compliance and securities
registration. From 1983 to 1987, Ms. Wexler was Manager of Investor Services for
The Robert A. McNeil Corporation, a real estate syndication company, in San
Mateo, California. From 1971 to 1983, Ms. Wexler held various positions,
including securities trader and international research editor, with Nikko
Securities Co., International, based in San Francisco.

      Ms. Wexler attended the University of Oregon, Portland State University
and the Hebrew University of Jerusalem, Israel. Ms. Wexler is also Vice
President and Secretary of Cronos Securities Corp. and a Registered Principal
with the NASD.

      PETER J. YOUNGER Mr. Younger, 44, was elected to the Board of Directors of
CCC in June 1997. See key management personnel of the Leasing Company for
further information.

      JOHN M. FOY Mr. Foy, 55, was elected to the Board of Directors of CCC in
April 1999. See key management personnel of the Leasing Company for further
information.

                                       30
<PAGE>   31

    The key management personnel of the Leasing Company and its affiliates at
February 28, 2001, were as follows:

       Name                                        Title
       ----                                        -----
  Peter J. Younger          Chief Operating Officer/Chief Financial Officer
  John M. Foy               Senior Vice President/Americas
  Nico Sciacovelli          Senior Vice President/Europe, Middle East and Africa
  John C. Kirby             Senior Vice President/Operations

      PETER J. YOUNGER Mr. Younger, 44, was elected to the Board of Directors of
The Cronos Group on January 13, 2000. Mr. Younger will serve as a director until
the 2001 annual meeting and his successor is elected and takes office. Mr.
Younger was appointed as Chief Operating Officer of The Cronos Group on August
4, 2000, and its Chief Financial Officer in March 1997. From 1991 to 1997, Mr.
Younger served as Vice President of Finance for the Leasing Company, located in
the UK. From 1987 to 1991 Mr. Younger served as Vice President and Controller
for CCC in San Francisco. Prior to 1987, Mr. Younger was a certified public
accountant and a principal with the accounting firm of Johnson, Glaze and Co. in
Salem, Oregon. Mr. Younger holds a B.S. degree in Business Administration from
Western Baptist College, Salem, Oregon.

      JOHN M. FOY Mr. Foy, 55, is directly responsible for the Leasing Company's
lease marketing and operations in North America, Central America, and South
America, and is based in San Francisco. From 1985 to 1993, Mr. Foy was Vice
President/Pacific with responsibility for dry cargo container lease marketing
and operations in the Pacific Basin. From 1977 to 1985 Mr. Foy was Vice
President of Marketing for Nautilus Leasing Services in San Francisco with
responsibility for worldwide leasing activities. From 1974 to 1977, Mr. Foy was
Regional Manager for Flexi-Van Leasing, a container lessor, with responsibility
for container leasing activities in the Western United States. Mr. Foy holds a
B.A. degree in Political Science from University of the Pacific, and a Bachelor
of Foreign Trade from Thunderbird Graduate School of International Management.

      NICO SCIACOVELLI Mr. Sciacovelli, 51, was elected Senior Vice President -
Europe, Middle East and Africa in June 1997. Mr. Sciacovelli is directly
responsible for the Leasing Company's lease marketing and operations in Europe,
the Middle East and Africa and is based in Italy. Since joining Cronos in 1983,
Mr. Sciacovelli served as Area Director and Area Manager for Southern Europe.
Prior to joining Cronos, Mr. Sciacovelli was a Sales Manager at Interpool Ltd.

      JOHN C. KIRBY Mr. Kirby, 47, is responsible for container purchasing,
contract and billing administration, container repairs and leasing-related
systems, and is based in the United Kingdom. Mr. Kirby joined CCC in 1985 as
European Technical Manager and advanced to Director of European Operations in
1986, a position he held with CCC, and later the Leasing Company, until his
promotion to Senior Vice President/Operations of the Leasing Company in 1992.
From 1982 to 1985, Mr. Kirby was employed by CLOU Containers, a container
leasing company, as Technical Manager based in Hamburg, Germany. Mr. Kirby
acquired a professional engineering qualification from the Mid-Essex Technical
College in England.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

      The Registrant has followed the practice of reporting acquisitions and
dispositions of the Registrant's units of limited partnership interests by CCC,
its general partner. As CCC did not acquire or dispose of any of the
Registrant's units of limited partnership interests during the fiscal year ended
December 31, 2000, no reports of beneficial ownership under Section 16(a) of the
Securities Exchange Act of 1934, as amended, were filed with the SEC

                                       31
<PAGE>   32

Item 11. Executive Compensation

      The Registrant commenced monthly distributions to its partners (general
and limited) from distributable cash from operations beginning in the second
quarter of 1996. Such distributions are allocated 95% to the limited partners
and 5% to the general partner. Sales proceeds will be allocated 99% to the
limited partners and 1% to the general partner. The allocations will remain in
effect until such time as the limited partners have received from the Registrant
aggregate distributions in an amount equal to their capital contributions plus
an 8% cumulative, compounded (daily), annual return on their adjusted capital
contributions. Thereafter, all Partnership distributions will be allocated 85%
to the limited partners and 15% to the general partner.

      The Registrant will not pay or reimburse CCC or the Leasing Company for
any remuneration payable by them to their executive officers, directors or any
other controlling persons. However, the Registrant will reimburse the general
partner and the Leasing Company for certain services pursuant to the Partnership
Agreement. These services include but are not limited to (i) salaries and
related salary expenses for services which could be performed directly for the
Registrant by independent parties, such as legal, accounting, transfer agent,
data processing, operations, communications, duplicating and other such
services; (ii) performing administrative services necessary to the prudent
operations of the Registrant.

    The following table sets forth the fees the Registrant paid (on a cash
basis) to CCC or the Leasing Company ("CCL") for the year ended December 31,
2000.

<TABLE>
<CAPTION>

                                                                  Cash Fees and
    Name                   Description                            Distributions
    ----                   -----------                            -------------
<S>              <C>                                              <C>

1)               Base management fees - equal to 7% of
                 gross lease revenues attributable to
                 operating leases pursuant to Section 4.3
                 of the Limited Partnership Agreement
   CCL                                                                $257,012

2)               Reimbursed administrative expenses equal
                 to the costs expended by CCC and it's
                 affiliates for services necessary to the
                 prudent operation of the Registrant
                 pursuant to Section 4.4 of the Limited
                 Partnership Agreement
   CCC                                                                $ 16,464

   CCL                                                                $162,589

3)               Interest in Fund - 5% of distributions of
                 distributable cash for any quarter pursuant
                 to Section 6.1 of the Limited Partnership
                 Agreement
   CCC                                                                $134,708

4)               Acquisition fee - equal to 5% of the purchase
                 price of containers acquired by the Registrant
                 pursuant to Section 4.2 of the Limited
                 Partnership Agreement

   CCC                                                                $ 13,312
</TABLE>

                                       32
<PAGE>   33

Item 12. Security Ownership of Certain Beneficial Owners and Management
         -(Continued)

      (a) Security Ownership of Certain Beneficial Owners

      There is no person or "group" of persons known to management of CCC to be
the beneficial owner of more than five percent of the outstanding units of
limited partnership interests of the Registrant.

      (b) Security Ownership of Management

      The Registrant has no directors or officers. It is managed by CCC. CCC
owns five units, representing 0.0003% of the total amount of units outstanding.

      (c) Changes in Control

      Inapplicable.

Item 13. Certain Relationships and Related Transactions

      (a) Transactions with Management and Others

      The Registrant's only transactions with management and other related
parties during 2000 were limited to those fees paid or amounts committed to be
paid (on an annual basis) to CCC, the general partner, and its affiliates. See
Item 11, "Executive Compensation," herein.

      (b) Certain Business Relationships

      Inapplicable.

      (c) Indebtedness of Management

      Inapplicable.

      (d) Transactions with Promoters

      Inapplicable.



                                       33
<PAGE>   34

<TABLE>
<CAPTION>
                                     PART IV

Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K

                                                                            Page
                                                                            ----
    <S>   <C>                                                               <C>
    (a)1. Financial Statements

          Independent Auditors' Report......................................  17

          Report of Independent Public Accounts.............................  18

    (a)2. The following financial statements of the Registrant are included
          in Part II, Item 8:

          Balance Sheets -- as of December 31, 2000 and 1999................  19

          Statements of Operations - for the years ended December 31, 2000,
          1999 and 1998.....................................................  20

          Statements of Partners' Capital - for the years ended December 31,
          2000, 1999 and 1998...............................................  21

          Statements of Cash Flows - for the years ended December 31, 2000,
          1999 and 1998.....................................................  22

          Notes to Financial Statements.....................................  23
</TABLE>

      All schedules are omitted as the information is not required or the
information is included in the financial statements or notes thereto.


                                       34
<PAGE>   35

<TABLE>
<CAPTION>
(a)3.Exhibits

     Exhibit
        No.                    Description                                 Method of Filing
     -------                   -----------                                 ----------------
     <S>       <C>                                                         <C>
       3(a)    Limited Partnership Agreement of the Registrant,            (a)
               amended and restated as of December 28, 1995

       3(b)    Certificate of Limited Partnership of the Registrant        (b)

       10      Form of Leasing Agent Agreement with Cronos Containers      (c)
               Limited

       10.1    Note Purchase Agreement, dated as of March 30, 2000,        (d)
               by and between the Registrant (the "Company"),
               Cronos Containers Limited (the "Guarantor") and IBJ
               Whitehall Business Credit Corporation (the
               "Purchaser")

       10.2    Guarantee, dated as of March 30, 2000, by and between the   (e)
               Guarantor, the Company and the Purchaser.

       10.3    Secured note, dated as of March 30, 2000, by and between    (f)
               the Company and the Purchaser

       10.4    Pledge and Security Agreement, dated as of March 30,        (g)
               2000, by and between the Registrant (the "Debtor")
               and IBJ Whitehall Business Credit Corporation (the
               "Secured Party)"
</TABLE>

(b) Reports on Form 8-K

      No reports on Form 8-K were filed by the Registrant during the quarter
      ended December 31, 2000.
--------------
(a)   Incorporated by reference to Exhibit "A" to the Prospectus of the
      Registrant dated December 28, 1995, included as part of Registration
      Statement on Form S-1 (No. 33-98290)

(b)   Incorporated by reference to Exhibit 3.2 to the Registration Statement on
      Form S-1 (No. 33-98290)

(c)   Incorporated by reference to Exhibit 10.2 to the Registration Statement on
      Form S-1 (No. 33-98290)

(d)   Incorporated by reference to Exhibit 10.1 to the Report on Form 10-Q of
      the Registrant for the quarterly period ended March 31, 2000

(e)   Incorporated by reference to Exhibit 10.2 to the Report on Form 10-Q of
      the Registrant for the quarterly period ended March 31, 2000

(f)   Incorporated by reference to Exhibit 10.3 to the Report on Form 10-Q of
      the Registrant for the quarterly period ended March 31, 2000

(g)   Incorporated by reference to Exhibit 10.4 to the Report on Form 10-Q of
      the Registrant for the quarterly period ended March 31, 2000

                                       35
<PAGE>   36

                                   SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                   CRONOS GLOBAL INCOME FUND XVI, L.P.


                                   By     Cronos Capital Corp.
                                          The General Partner

                                   By     /s/ Dennis J. Tietz
                                          -------------------------------------
                                          Dennis J. Tietz
                                          President and Director of Cronos
                                          Capital Corp. ("CCC")
                                          Principal Executive Officer of CCC

Date: March 26, 2001


      Pursuant to the requirement of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of Cronos
Capital Corp., the managing general partner of the Registrant, in the capacities
and on the dates indicated:

<TABLE>
<CAPTION>
       Signature                     Title                     Date
       ---------                     -----                     ----
<S>                       <C>                             <C>
  /s/ Dennis J. Tietz       President and Director of
-----------------------       Cronos Capital Corp.        March 26, 2001
Dennis J. Tietz            ("CCC") (Principal Executive
                                 Officer of CCC)


  /s/John Kallas           Chief Financial Officer and
-----------------------            Director of            March 26, 2001
John Kallas                Cronos Capital Corp. ("CCC")
                             (Principal Financial and
                            Accounting Officer of CCC)


  /s/Elinor A. Wexler     Vice President-Administration,
-----------------------     Secretary and Director of     March 26, 2001
Elinor A. Wexler               Cronos Capital Corp.
</TABLE>



                            SUPPLEMENTAL INFORMATION

      The Registrant's annual report will be furnished to its limited partners
on or about April 30, 2001. Copies of the annual report will be concurrently
furnished to the Commission for information purposes only, and shall not be
deemed to be filed with the Commission.


<PAGE>   37

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
  Exhibit
   No.                            Description                             Method of Filing
  -------                         -----------                             ----------------
<S>           <C>                                                         <C>
   3(a)       Limited Partnership Agreement of the Registrant, amended    (a)
              and restated as of December 28, 1995

   3(b)       Certificate of Limited Partnership of the Registrant        (b)

   10         Form of Leasing Agent Agreement with Cronos Containers      (c)
              Limited

   10.1       Note Purchase Agreement, dated as of March 30, 2000,        (d)
              by and between the Registrant (the "Company"),
              Cronos Containers Limited (the "Guarantor") and IBJ
              Whitehall Business Credit Corporation (the
              "Purchaser")

   10.2       Guarantee, dated as of March 30, 2000, by and between the   (e)
              Guarantor, the Company and the Purchaser

   10.3       Secured note, dated as of March 30, 2000, by and between    (f)
              the Company and the Purchaser

   10.4       Pledge and Security Agreement, dated as of March 30,        (g)
              2000, by and between the Registrant (the
              "Debtor") and IBJ Whitehall Business Credit
              Corporation (the "Secured Party)"
</TABLE>

----------------

(a)   Incorporated by reference to Exhibit "A" to the Prospectus of the
      Registrant dated December 28, 1995, included as part of Registration
      Statement on Form S-1 (No. 33-98290)

(b)   Incorporated by reference to Exhibit 3.2 to the Registration Statement on
      Form S-1 (No. 33-98290)

(c)   Incorporated by reference to Exhibit 10.2 to the Registration Statement on
      Form S-1 (No. 33-98290)

(d)   Incorporated by reference to Exhibit 10.1 to the Report on Form 10-Q of
      the Registrant for the quarterly period ended March 31, 2000

(e)   Incorporated by reference to Exhibit 10.2 to the Report on Form 10-Q of
      the Registrant for the quarterly period ended March 31, 2000

(f)   Incorporated by reference to Exhibit 10.3 to the Report on Form 10-Q of
      the Registrant for the quarterly period ended March 31, 2000

(g)   Incorporated by reference to Exhibit 10.4 to the Report on Form 10-Q of
      the Registrant for the quarterly period ended March 31, 2000