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SINGAPORE's Neptune Orient Lines (NOL) and two Chinese companies are to invest US$50 million (about HK$390 million) on an integrated cargo service joint venture including operations of a new Fuzhou-Japan container service.

  Mr Li Jinhe, deputy general manager of Sinotrans Fujian Co, Ms Xiang Yuxiang, representative of Sinotrans Beijing and Mr Goh Hung-song, Neptune Orient Lines country manager for China and Hongkong, formalised the agreement on Wednesday.

  Ms Xiang represented the China National Foreign Trade Transportation Corporation, Beijing while Mr Li represented the China National Trade Transportation Corporation, Fujian branch.

  ''We expect the exports from Fuzhou to Japan to be in the region of about 500,000 tonnes year,'' Mr Li said, adding that there were also plans to expand services to other parts of the region in the near future.

  NOL's relationship with Sinotrans started in 1983 with the operation of a cargo trucking operation between Fuzhou in Fujian province and Hongkong, he said.

  Later the venture was expanded to include a sea link between the two areas.

  Mr Li said the relationship was further strengthened when NOL and Sinotrans set up a second venture - International Transportation Cargo Services - in 1989 for transporting urgent cargo between Fuzhou, Xiamen and Shenzhen to Hongkong.

  This venture enabled shippers to shorten the transit time which could take as long as a week in some cases, he said.

  As demand for goods increased, the improved and faster transportation services also developed.

  Mr Goh said the new Fuzhou-based joint venture, Sinotrident Shipping Co, Fujian - the third venture with Sinotrans - was geared to become Fujian's premier liner operator when it starts operations in a couple of weeks.

  The company also intended to turn Fuzhou into a major gateway port for Fujian province and its hinterland, he said.

  A 400-TEU (20 ft equivalent unit) vessel Stamford will be deployed on a fortnightly frequency, with the service is to be upgraded later to a weekly frequency.

  Another vessel is expected to be put into operations in about two to three months.

  Mr Goh said Sinotrident Shipping would offer a total service to customers comprising depot, warehousing, trucking, distribution, container freight station and ocean carriage.

  NOL, which is the first foreign global carrier to operate a fully containerised liner service between Fuzhou and Japan, was expanding its operations in China as it felt the timing was right, he said.

  Compared with the past few years, the investment climate following the mainland's open-door policy, which brought with it opportunities and flexibility for foreign companies to team up with Chinese interests, had led NOL to believe it should move now, headded.

  Apart from being an immediate boon to the Fujian-Japan trading communities, the liner service also will offer shippers a link to the west and east coasts of North America via transshipment at Japan on to NOL's transpacific vessels.

  The service is expected to meet the demands of the booming Chinese economy.

   and the growing bi-lateral trade between China and Japan.



Sinotrans and NOL launch Japan route