The joint venture, Weifang Port Services Co Ltd, "will be involved in the construction, management and maintenance of the sea channel, anchorage and other port infrastructure within the port region," Sime Darby said in a stock market announcement.
"The rationale for the proposed joint venture is to separate the responsibilities of public infrastructure development and commercial profit-driven operations," it said, adding that "the joint-venture company is expected to accelerate the development of Weifang Port's capabilities and improve its competitiveness".
Sime Darby's 37% stake, through Weifang Sime Darby, will involve a total investment of MYR198.3m ($60.3m). The venture will be funded via a combination of internally generated funds and contribution in kind to the 10,000-tonne-class sea channel and wave breaker, Sime Darby said.
Weifang Port is about 50km away from Weifang City, a prefecture-level city in central Shandong province. Weifang Sime Darby Port Co is the operator of the port.
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