Sinotrans invests in Jiangsu facility

PUBLISHED : Wednesday, 17 March, 2004, 12:00am
UPDATED : Wednesday, 17 March, 2004, 12:00am

The company will spend 220m yuan on a bulk-cargo joint venture

Mainland freight forwarder Sinotrans will invest 220 million yuan in a bulk-cargo facility in northern Jiangsu province. The H-share listed company inked a three-way deal last week to take 42 per cent in a joint venture - Xinluqiao Lianyungang Terminal - which will operate three bulk-cargo berths at the sea-to-rail port facility.

Lianyungang Port Group will control a 38 per cent interest in the joint venture, while Jiangsu Communication Group will hold the remaining 20 per cent. The new company's net assets will total about 600 million yuan.

Gao Wei, company secretary for Sinotrans, said the investment would enhance the firm's presence in the region. 'It's a good project, as Lianyungang is the major import-export terminal in northern Jiangsu,' said Mr Gao yesterday. 'The terminal will support our bulk maritime transportation business.'

Apart from its core businesses in freight forwarding, express services and maritime transport, Sinotrans also has a presence in port storage, terminal services and trucking.

Located at the starting point of the Longhai railway network, extending from Jiangsu's east coast through central and northwest China, Lianyungang offers sea-to-rail cargo services for clients in the inland Chinese provinces, Russia, central Asia and even Europe.

The port handled more than 40 million tonnes of cargo last year.

Sinotrans spokeswoman Cheng Min said two berths, which can harbour 50,000-tonne bulk vessels, are already in use. A third facility, which can berth vessels of 70,000 to 100,000 tonnes, will be operational in June.

'They are multi-purpose bulk berths with annual capacity of 10.8 million tonnes,' said Ms Cheng.

Sinotrans will release its final results for last year by the end of this month.