China Merchants and Baosteel join up for port expansion

Hong Kong: China Merchants (Holdings) International, which invested 1.6 billion yuan for a 45 per cent stake in Zhanjiang Port in September last year, has linked up with Baosteel, the country's largest steel mill, chairman Fu Yuning said last week.

Under the agreement, Baosteel had taken an 8 per cent stake in the port, he said, diluting China Merchants' stake to 40 per cent, while the Zhanjiang Port Authority retained the balance. The partners have earmarked 4 billion yuan for port expansion that will include two container ports and a 300,000-tonne iron ore terminal that will come on stream by the end of next year.

Zhanjiang Port also entered into an agreement with China Aviation Oil, the sole supplier of jet fuel oil on the mainland, to invest in a 300,000-tonne crude oil terminal in the port. [14/7/08]

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