Hutchison Whampoa, Cosco Pacific and Shanghai Industrial Holdings have agreed to invest in a three billion yuan (about HK$2.7 billion) container terminal project at Shanghai port.
The deal gives Hutchison, the world's biggest private ports operator, an increased foothold in the mainland's fastest-growing port ahead of the mainland's anticipated entry into the World Trade Organisation.
Hutchison will hold 30 per cent of the Shanghai Waigaoqiao Terminal (SWT) phase one, implying a capital commitment of 900 million yuan.
Cosco Pacific, the Hong Kong-listed arm of the mainland's biggest shipping company, will hold 20 per cent and Shanghai Industrial, listed arm of the Shanghai municipal government, 10 per cent.
The Shanghai Port Authority will remain the largest shareholder in SWT phase one with 40 per cent.
Under the agreement signed in Shanghai yesterday, Hutchison's wholly owned subsidiary Hutchison Port Holdings (HPH) will have the right to manage the phase. It is the Hong Kong company's ninth mainland port project.
An increasing amount of mainland trade is moving directly through mainland ports instead of via Hong Kong, and this process is expected to accelerate once the mainland joins the WTO.