NWS Holdings, the infrastructure and service flagship of property developer New World Development, has moved further into logistics services by investing in a 1.4 billion yuan port project in Wenzhou.
The cash-rich firm signed a framework agreement with state-owned Wenzhou Port Group, paving the way for the setup of a 55-45 joint venture that would build two multi-purpose container terminals and related logistics facilities in the city, sources said yesterday.
The deal, which followed the group's planned investment in a nationwide rail container terminal project last year, marks its latest attempt at capitalising on the mainland's growing demand for transport and logistics services.
'We are positive about the demand in Wenzhou, which has seen remarkable growth in exports and manufacturing activities,' an NWS spokeswoman said. 'And we are looking for a way-out for our cash pile.'
However, she declined to specify details of the joint venture.
One source said NWS would have to spend 770 million yuan, or its share of investment, according to its equity interest in the Wenzhou project.
The company, which has interests in ports in Xiamen and Tianjin and ATL Logistics Centre in Hong Kong, would also contribute management expertise and technology knowhow, the source said.
