Tianjin Port Development Holdings Ltd, the operator of the Chinese mainland's fifth-largest port, yesterday announced a 3.6 billion yuan (US$451 million) container terminal joint venture.

The port will join forces with leading international container conglomerate COSCO Pacific Ltd and Copenhagen-based AP Moeller-Maersk, the world's biggest shipping line, in the venture.

Tianjin Port Development, which was listed on May 24, said in a statement it will own 40 per cent of the venture, while the other two companies will each hold 30 per cent.

The venture, Tianjin Port Euroasia International Container Terminal Co Ltd, will have a registered capital of 1.26 billion yuan (US$157.5 million), with 504 million yuan (US$63 million) contributed by Tianjin Port.

"This partnership is a reflection of the current trend of strategic co-operation between local ports and international container or shipping companies in China.
"Tianjin Port is not setting a trend, and it will not be the last one to do it either," Yu Jun, an analyst with CITIC Securities, told China Daily.

Tianjin Port could not be contacted for comment.

Fuelled by China's rapidly expanding economy, container turnover volume delivered through China's ports, including Tianjin, has shot up in recent years.

Tianjin port currently owns two container terminals, with 13 berths. The throughput capacity of the terminals amounts to 4.8 million TEU (twenty-foot equivalent unit) at present.

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