SINOTRANS Ltd has secured a logistics contract worth 960 million yuan (US$140 million) for a CITIC Pacific Ltd's iron ore project in Australia.

Under a deal signed late on Monday, Sinotrans Eastern Co, the Shanghai-based unit of Sinotrans, will be responsible for shipping all equipment and material used in mining plants, power stations, port facilities and other infrastructures for the CITIC project from around the globe.

The contract covers 30 months retrospective to July 4.

It is estimated that around 600,000 freight tons of goods will be shipped to Australia from North America, Europe and Asia, of which 70 percent will be from China, according to a Sinotrans statement.

The US$4.2 billion iron ore project, or Sino Iron, will be one of the largest magnetite iron ore projects in Western Australia when production starts at the end of 2009. CITIC has sold a 20- percent stake in the Australian mine to China Metallurgical Group Corp, which is also the project's engineering, procurement and construction contractor.

The project aims for annual production of 27.6 million tons of iron ore concentrate and pellets, and all output will supply Chinese steel makers.

CITIC Pacific, the Hong Kong-listed unit of China's biggest investment company, has established a wholly-owned Australian unit, CITIC Pacific Mining Management Pty Ltd to manage the Sino Iron project.

For Beijing-based and Hong Kong-listed Sinotrans, winning the contract in the metallurgical sector is a new milestone after securing major deals for the petrochemical and power industries, and also marks a key step in tapping into the international market, Vice President Wang Lin said.

Shares in Sinotrans lost 4.59 percent to HK$1.04 (13 US cents) yesterday.