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Jinzhou issue to bolster port's status

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B-share candidate Jinzhou Harbour (Group) Co says its biggest asset, Jinzhou port, will become the second largest international port in northeastern China after the completion of its development in 2005.

The sole developer and operator of Jinzhou port, in Liaoning province, will raise up to US$41.4 million by issuing 115 million B shares, including an over-allotment option, for phase two of its construction.

The shares will start trading in Shanghai on January 20.

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Jinzhou Harbour plans to issue another 60 million shares for an A-share listing in April, to raise 300 million yuan (about HK$279 million), company vice-president Ge Weiguang said.

Jinzhou city deputy-mayor Wang Lei said phase two - which would cost 2.53 billion yuan - would comprise 13 berths, with an annual capacity of 10 million tonnes.

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Jinzhou Harbour was granted the sole development right, which would allow it to seek foreign co-operation.

The company will use about 168 million yuan from the B-share listing to fund construction of the new berth number 5 in phase two, a further 30 million yuan for container handling facilities at berth number 4.

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