Baosteel, China Merchants to expand a port in eastern China

China Merchants (Holdings) International Co Ltd has linked up with Baoshan Iron & Steel Co Ltd (Baosteel) to expand a port in eastern China, the South China Morning Post reported.

Under the agreement, Baosteel will take an 8 pct stake in Zhanjiang port, diluting China Merchants' stake to 40 pct, while the Zhanjiang Port Authority retains the balance, said China Merchants chairman Fu Yuning.

The partners have earmarked 4 bln yuan for port expansion that will include two container ports and a 300,000-ton iron ore terminal that will come on stream by the end of next year.

China Merchants last year invested 1.6 bln yuan for a 45 pct stake in the port.

Source: http://www.quamnet.com