The joint venture to build the facility will have an investment value of RMB300m ($45.2m) of which Qingdao Port will take a 49% stake.
The joint venture will be engaged in the storage, stevedoring and transmission of oil products including crude oil, fuel oil, diluted asphalt and wax oil, the company said in a stock market announcement.
Giving its rationale for the investment the company noted that the port s one of world’s top international ports and also an important domestic import and export port and transit base of oil products.
"Through the cooperation between the company and PetroChina Fuel Oil in the project, both parties will leverage on their respective advantages and further improve the oil storage and transportation facilities in Dongjiakou Port Area, so as to further enhance the core competitiveness of the Port of Qingdao in respect of transportation of oil products," the company said.
“The facility will also provide a solid foundation and strong support for the Port of Qingdao to provide the wide inland customers with high-quality and high-efficiency port logistic services and to consolidate the oil resource markets. Thus, the cooperation will bring economic and social benefits to both parties and achieve win-win development," Qingdao Port added.
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