SAR-listed Shenzhen International Holdings and parent company Shenzhen Investment Holdings will invest a combined 100 million yuan (about HK$93.64 million) in a mainland logistics network and e-commerce joint venture. Shenzhen International will put 70 million yuan in the joint venture - Total Logistics. The new company's logistics division will target the mainland's burgeoning high-value manufacturing and business-to-business e-commerce sectors, and is expected to account for 80 per cent of revenues. Its e-commerce enablement division will provide software applications, infrastructure and support services primarily to affiliated companies within the Shenzhen Investment group. Shenzhen International's interest in the joint venture will be funded from the proceeds of a HK$513.66 million convertible bond issue made to Hutchison Whampoa in March. If the bonds are converted, Hutchison will have 10 per cent of Shenzhen International. Hutchison executive director Dominic Lai did not say if the conglomerate would invest in the joint venture directly, but indicated it had Hutchison's 'full support'. A number of transportation and distribution subsidiaries within the Shenzhen Investment group would earn service fees providing trucks and delivery services to the joint venture. Network Technology, a sister company majority-controlled by Shenzhen Investment, would provide a platform for Total Logistics to market its logistics solutions online. Shenzhen International has options to acquire Network Technology and E-Seg Online, a business-to-business portal controlled by Shenzhen Investment. They can be exercised once authorities permit foreign investment in the mainland's Internet and e-commerce sectors. To provide logistics customers with the ancillary online payment, credit, insurance and document processing facilities, Total Logistics has partnered with China Merchants Bank and a number of other banks. Total Logistics official He Zhongze said the logistics network would also be extended overseas through partnerships and strategic alliances. He said Shenzhen International was in talks with Dutch courier TNT Express Worldwide to form an alliance. Mr He did not give a timetable for when the logistics network would be developed to cover the entire country. 'We will begin with southern China, and expand from there,' he said.