Wharf Holdings subsidiary Modern Terminals Ltd (MTL) is planning to invest about 320 million yuan (HK$300 million) in the construction costs of two additional berths at Shekou Port in the Pearl River Delta.
MTL, 55.3 per cent held by Wharf, has received approval in principle from Beijing to take a 20 per cent stake in Shekou Container Terminal II, which will have an annual capacity of 800,000 teu (20-foot equivalent units) when completed at the end of 2003.
With trade growth from the delta remaining strong despite the economic downturn, the original facility is operating at capacity.
The Pearl River Delta is accounting for 35 per cent to 40 per cent of China's exports this year.
The original facility, with MTL under management contract, handled 720,324 teu last year, 37 per cent more than the previous year.
Phase II will double its capacity by adding two berths, 700 metres of quay length, eight post-panamax quay cranes, and an alongside water depth of 17 metres.