NWS Holdings Ltd., an arm of Hong Kong property developer New World Development Co., will form a 12 billion yuan ($1.5 billion) rail terminal venture to tap China's rising demand for moving freight.

China United International Rail Containers Co. will develop and operate 18 rail container terminals in the country. NWS will own 22 percent of the venture, with China Railway Container Transport Corp. holding 58 percent and China International Marine Containers Co. and Promisky Investment Ltd. owning 10 percent each.

NWS is seeking to tap rising demand for freight movements in China driven by the country's expanding economy and exports. The Chinese government is encouraging private investment in railways as it needs 2 trillion yuan ($250 billion) to upgrade and expand its network 35 percent by 2020.

Rail cargo transport in China will increase about 30 percent to 3.5 billion tons by 2010 from 2005, with container shipments more than tripling to 10 million standard-size twenty-foot equivalent units, or TEUs.

China United will build rail container terminals in coastal and inland cities, including Shanghai, Beijing and Guangzhou, NWS said.

The total investment in China United is expected to be 12 billion yuan including registered capital of 4.2 billion yuan contributed by the partners, NWS said. NWS's maximum contribution will be 2.64 billion yuan.

Daqin Railway Co., China's largest rail carrier of coal, raised 15 billion yuan in a share sale in July, while Luoding Railway was sold to a closely held company in August.

Source:佚名