SHANGHAI Zhenhua Port Machinery (stock code: 600320), the world's leading manufacturer of quayside cranes, has secured a US$200 million order from Dubai-based DP World, the firm announced on the Shanghai Stock Exchange Website yesterday.

Under the deal, 15 twin 40-foot quayside container cranes and 32 rail-mounted models will be delivered to DP World in 2008 and 2009 to be used in Dubai's second-phase ports.

"Today's news was not surprising. Zhenhua has been able to consistently outbid its rivals on large projects because of its lower costs, which is a result of its economies of scale and low labor costs," said Shanghai Securities analyst Ping Jingwei.

The Shanghai-based company holds a 74 percent global market share in quayside container cranes, Ping said.

The deal is the third major contract announcement by the company this year. In February and April, it disclosed contracts with AP Moller and Hanjin Shipping worth US$450 million.

An industry insider told Shanghai Daily that the amount of the latest deal accruing to Zhenhua's account books this year will be minimal. Most of the revenues will be booked when the deliveries are made.

DP World is a leader in international marine terminal operations, running 42 terminals in 22 countries. Dubai is its flagship port.

An inside source said the firm is "an old friend" of Zhenhua, as it was the first international customer to order Zhenhua's twin 40-foot container cranes in 2004.

As a harbor equipment provider, Zhenhua has benefited from rising cargo traffic all over the world. It reported a net profit of 1.6 billion yuan (US$211 million) last year, a 32 percent rise.