GUANGZHOU Shipyard Plant, a Hongkong listing candidate, expects to launch its shipping transport business by mid-year by setting up a cross-border joint venture.
The company intends to take the major share in the 20 million yuan (about HK$26.9 million) project, which will involve a Hongkong shipping company and another Hongkong firm which owns pier facilities. The fourth partner will be a China shipping company.
''We are now reassessing the feasibility report to study its profitability,'' said Guangzhou Shipyard director Ren Fuwei. ''But the project will definitely go ahead.'' He said the business initially would operate a service between Guangzhou and Hongkong, with Macau possibly included in the future. The major initial investment for the project would be the purchase of four ships.
Mr Ren said the final plan had not been settled as a number of Taiwanese and American companies had shown interest in the enterprise.
Guangzhou Shipyard has also teamed with two other companies in Xinhui to establish a ship scrapping company.
Initial investment was expected to be about 30 million yuan, most of which would be used to buy equipment.
