Firm in container venture

FIRST Shanghai Investments says a wholly owned subsidiary has taken a 54 per cent stake in a Shanghai-based freight joint venture.

The company said its CVIC International Container Transportation Co had joined forces with Shanghai International Container Transportation Corp, which will hold a 46 per cent share in the venture.

A total of US$15 million is to be invested in the venture, Shanghai Zhong Chuang International Container Storage and Transportation Co.

It has a registered capital of $7 million and an initial investment of $4 million in the form of loans from shareholders.

First Shanghai said further investment would be funded by bank borrowings or additional lending by shareholders.

Both parties will contribute to the registered capital and the shareholders' loan in proportion to their interest in the venture. But the Chinese partner will make its contribution by transferring to the venture land-use rights, buildings, trucks, and loading equipment.