"This is our initial attempt to advance the management of the current container terminals," said Lu Haihu, director of Shanghai Port Authority.

The newly established joint venture, called Shanghai Hudong Container Terminal Management Co Ltd, will manage the fourth-phase container wharf of Waigaoqiao Port, at the mouth of the Yangtze River.

The management company is registered with 15 million yuan (US$1.8 million), with the Chinese side holding 51 per cent and Moller taking up 49 percent.

Tom Behrens-Sorensen, president of Maersk (China) Shipping Co Ltd, a subsidiary of Moller, said Moller is optimistic about its plans working with its Chinese partner, remarking: "The co-operation will be beneficial to both sides."

Moller conducted a careful survey of Chinese ports before it signed the contract with Shanghai. Of the decision, Behrens-Sorensen said: "Shanghai's robust economic growth led us to the decision."

Moller is planning to move its shipping business in Western countries to Asia and China, he said.

He added that if possible, Moller wants to hold part of the fourth-phase wharf shares.

Waigaoqiao's fourth-phase wharf, with an investment of 2.96 billion yuan (US$359 million) will build four container berths on the 1,250-metre-long site. On completion by the end of this year, it will have an annual handling capacity of 1.8 million 20-foot containers.

Shanghai Port is expected to handle 8.2 million 20-foot containers this year, much higher than last year's 6.34 million.

By 2005, the city will have an estimated annual capacity of 10 million 20-foot containers.

(China Daily September 18, 2002)