Dongdu deal pleases AIF

PUBLISHED : Friday, 13 September, 1996, 12:00am
UPDATED : Friday, 13 September, 1996, 12:00am

Fairyoung Holdings' investment in three berths in Xiamen's Dongdu port is attractive even without cargo from direct shipping links between China and Taiwan, a company shareholder says.

Ted Rule, executive director of Asian Infrastructure Fund (AIF), said AIF had made its decision to invest in Fairyoung without any consideration of trade between Taiwan and China.

'We found the 30 to 40 per cent growth at Dongdu port last year attractive,' he said.

He ruled out any possibility of AIF taking a majority stake in Fairyoung as this was not allowed under the agreement between the companies.

John Chan Boon-ning, managing director of Fairyoung, said the company would invest $1 billion in terminals, warehouses and trucking in China.

Sources said Fairyoung had engaged Peregrine to prepare for a separate listing of its port sector investments. The listing was expected to take place within six months.

Analysts said Fairyoung's investment in berths 12, 13 and 14 at Dongdu port would benefit when direct shipping links between Xiamen and Taiwan were allowed.

Xiamen executive vice-mayor Zhu Yayan said between January and June the port recorded a 20 per cent rise in cargo throughput. Fifteen shipping companies from Taiwan had visited Xiamen to negotiate for permission to establish direct links, he said.