Hong Kong-listed Fairyoung Holdings is embarking on an aggressive plan to invest up to $1 billion in terminals, trucking and warehouse projects in China. Managing director John Chan said Fairyoung would spend $300 million on construction of Dongdu port of Xiamen's Berths 13 and 14, to be built at a total cost of $500 million. 'Berth 13 will be operational next year,' he said after a ceremony yesterday to mark the start of reclamation work for the berths. 'Our Berth 12 project will start operations in November when we receive our quay cranes from Germany,' Mr Chan said. He said the company already had invested $350 million in Berth 12 from internal funding, a sum which was not included in the $1 billion investment plan. Fairyoung's investment in Dongdu port, the fifth largest port in China, is held through a joint-venture company, Xiamen Xiang Yu Quay Co, of which it holds 92 per cent. Xiamen Port Bureau has the remaining 8 per cent. The company was able to hold the controlling stake because the deal was negotiated before 1994. Since then, foreign investors have been limited to 49 per cent of port ventures. All the company's port-related projects are held under Fairyoung Port Investments (Holdings), which is 51 per cent owned by Fairyoung through its wholly owned subsidiary, Rite Choice, and 49 per cent owned by the Asian Infrastructure Fund (AIF). Mr Chan said Fairyoung would invest $200 million to construct an 89,000 sq m warehouse processing zone development near Berths 12, 13 and 14. Managing director of Peregrine Investments Holdings' executive committee, Peter Fu, said Fairyoung's berths would have instant business when they became operational because Dongdu port's Berths 7 and 8 were saturated. Fairyoung's berths would benefit greatly when direct shipping between Taiwan and China began. Xiamen executive vice-mayor Zhu Yayan said some Taiwanese shipping lines had applied to Chinese authorities for rights to make direct calls to Xiamen, and some Chinese shipping lines similarly had applied for permission to call at Taiwan's ports. Mr Chan said Fairyoung's other investments included $100 million to $200 million in Nanjing for a warehouse project. Fairyoung had invested US$7.5 million in Suzhou on a river port terminal, facilities for general cargo and containers, a container depot and a container freight station, he said. The investment included 20 container trucks for transporting containers to destinations such as Shanghai from Suzhou.