[photopress:railfreightcrossover.jpg,full,alignright]RMB12 billion ($1.52 billion) is being invested in a joint venture between Hong Kong-listed NWS Holdings and state railways to develop and operate container-terminal networks in 18 Chinese cities.
NWS will have a 22 percent stake in the venture.
China Railway Container Transport, a unit of China’s Ministry of Railways, will have a controlling 58 percent interest in the company.
China International Marine Containers, the world’s largest container-maker judged by revenue, will have a 10 percent stake.
Promisky Investment will have the remaining 10 percent.
The company will be known as China United International Rail Containers and will have a registered capital of RMB4.2 billion, or 35 percent of the total planned investment of RMB12 billion. NWS said the remaining 65 percent of the investment will be raised through project financing or commercial loans.
The 11 cities included in the first phase are: Shanghai, Kunming, Chengdu, Chongqing, Wuhan, Xian, Shenzhen, Qingdao, Dalian, Harbin and Tianjin. The cities in the second phase are: Zhengzhou, Lanzhou, Shenyang, Guangzhou, Urumqi, Beijing and Ningbo.
The joint venture will also be involved in container-handling, storage, repair, customs declarations, logistics and other related businesses.
NWS said the construction of the rail container terminals is in line with China’s rail transport development plan, as the Chinese government plans to develop 17,000 kilometers of rail networks over the next five years.
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