Port and transportation operator Shenzhen Yantian Port Holdings Co. Ltd. (000088.SZ) said it would form a new joint venture with Hutchison Whampoa to operate the western section of Yantian Port.

Shenzhen Yantian said the joint venture, Hutchison Whampoa Yantian Port Investment Co., would operate three berths in the west section of the port, and will have registered capital of 246 million yuan (US$30 million).

The company said it will own a 58.33-percent stake, and Hutchison Whampoa's port investment unit a 41.67-percent stake in the new venture.

Shenzhen Yantian Port said it would lease or transfer some of its land-use rights and assets in the venture, worth 275.85 million yuan.

The new joint venture comes after Shenzhen Yantian Port's parent Yantian Port Group formed a another venture, Yan Tian International Container Terminals Ltd. (YICT), with Hutchison Whampoa��s port arm, Hutchison Port Holdings (HPH) Group, in 1994. The venture was set up to manage and operate the middle section of the Yantian Port.

Shenzhen Yantian Port��s net profit for the first nine months stood at 503.01 million yuan, down 9.33-percent from a year earlier. The listed company is 73.89 percent owned by Yantian Port Group.

Yantian Port has witnesses strong growth in cargo handling in recent years.

Source: Shenzhen Daily-Agencies