Port deal in Tianjin to speed car exports - ResearchInChina
Date:2007-07-18
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TIANJIN Port Co (stock code: 600717) will form a joint venture with two overseas investors to expand capacity for auto exports at the facility, it said yesterday.
The company, operator of the largest port in northern China, and Japan's Nippon Yusen Kabushiki Kaisha and Sweden's Wallenius Wilhelmsen Terminals North AB will form a venture backed by 264 million yuan (US$35 million) in registered capital, according to a statement filed with the Shanghai Stock Exchange.
Tianjin Port will take a 51 percent stake in the venture - TPG Global RO-RO Terminal Co Ltd - while Nippon Yusen will own 34 percent and Wilhelmsen will hold the rest.
Dock planned
The JV will build a new dock at the port with a design capacity for shipping 500,000 cars a year.
The project, which will take about 16 months to complete, will cost 756 million yuan.
The joint venture is expected to produce 1.46 billion in sales annually, enabling investors to recover their original capital within 10 years.
Tianjin Port shares edged up 0.69 percent yesterday to 24.74 yuan, while the benchmark Shanghai Composite Index gained 1.94 percent.
China's ports are expanding capacity for automakers such as Chery Automobile Co and Great Wall Motor Co as they export more vehicles in response to growing competition within the world's second-largest auto market. China's vehicle exports almost doubled last year.
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