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. 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. 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. A further 20 million yuan will be used for construction of a 200,000-square-metre storage area, with the rest for working capital. Jinzhou Harbour handled five million tonnes of cargo and oil products in the first 11 months of last year, compared with 4.38 million tonnes in 1996. Company president Xue Benji said the utilisation rate of Jinzhou port was 75 per cent last year compared with the country's average of 52 per cent. Mr Ge said exports for the region surrounding Jinzhou would exceed 20 million tonnes by 2000 and would rise to 58 million tonnes by 2010. He said the market potential was enormous because only about 0.07 per cent of the region's export went through Jinzhou port in 1995. The company's profit margin was about 61.8 per cent in 1996. Jinzhou Harbour, which will start a three-day international roadshow today, earned 114 million yuan in net profit in 1996 from a 185 million yuan turnover.