Foreign investment is being sought to build a new batch of infrastructure projects in the nation's seventh-largest container port.

The red carpet is being rolled out to foreign firms in a bid to build Xiamen into a leading international port in the next decade.

"We are advancing towards the goal of becoming one of the world's top 20 ports in 2010," said Xiamen Port Administration Director Wang Yongjun.

The southern Chinese city will be able to handle 100 million tons of freight, including 10 million 20-foot equivalent units (TEU) of containers annually, tripling the port's current capacity by that time, Wang said.

Xiamen handled 2.3 million TEU containers in 2003, giving the port a global ranking of 29th.

Xiamen plans to invest a total of 10 to 14 billion yuan (US$1.3-1.7 billion) over the next six years to enhance the city's handling capacities and build more ports in order to achieve this ambitious goal, he said.

The city is increasing its efforts to construct the Haicang and Songyu ports, in a bid to reduce reliance on the ageing facilities at Dongdu port, Wang said.

Dongdu port, which is in the west of Xiamen, handles around 75 per cent of the city's total shipping volume.

Haicang and Songyu ports, which are designed to be deep-water ports with more berths, will help accelerate the city's competitiveness, Wang said.

The city is also working on plans to develop a new port in the waters to the east of the city.

Foreign investors are being invited as the State is unable to afford all of the costs required for the construction projects.

"We are contacting leading international shipping companies and pier operators to attract more capital," he said.

The official also pointed out that overseas firms can hold the controlling stakes in a joint venture or establish wholly-owned subsidiaries to invest in the wharves.

An increasing number of foreign companies have shown great interest in Xiamen's port construction market.

Denmark-based AP Moller-Maersk Group plans to invest around US$100 million this year in the first phase of the construction project of Songyu port, Wang said.

Hong Kong-based Hutchison Whampoa Limited and Singapore-based PSA Corporation Limited are also believed to want to invest in the Xiamen port.

Commenting on the recent performance of Xiamen port, he said Xiamen did a "good job" in the first half of the year thanks to China's robust foreign trade and a warming global economy.

Xiamen's ports handled approximately 20 million tons of cargo, including 1.4 million TEU containers from January to June this year, increases of 22.68 and 27.47 per cent year-on-year respectively.

"The brisk growth should be attributed to the soaring foreign trade volume, which rose by 39 per cent to US$523 billion," Wang said.

The city has set a goal of notching up 3 million TEU containers for the full year, and it also plans to invest 1.26 billion yuan (US$15.2 million) in port construction this year.

Xiamen's move is the latest in China's port construction spree to sustain the country's skyrocketing imports and exports, and a rising number of Chinese travellers.

Source: China Daily