It is reported that Shenzhen Yan Tian Port Holdings a company involved in the port, cargo handling and transportation businesses plans to inject CNY 470 million into Shenzhen Yan Tian West Port

Two plots of land worth a total of CNY 97.34 million will constitute part of the injection of CNY 470 million with the remaining sum to be in the form of a cash injection. One of the land plots has an area of 28,739 square meters while the other covers an area of 23,595.2 square meters.

Following the capital injection, Yan Tian Port shareholding in the target company will remain at 35%. Shenzhen Yan Tian West Port was founded by Shenzhen Yan Tian Port and Hutchison Whampoa Yantian Port in 2005. The latter has a 65% stake in the company.

Proceeds received from the capital injection will be used to construct a container terminal in the western part of Yan Tian Port in Shenzhen.

The target company had posted 2010 net profit of CNY 132 million on revenue of CNY 218 million. Audited total assets hit CNY 1.59 billion while liabilities totalled CNY 140 million. It is mainly engaged in the investment and management of No.1-3 multi-purpose berths at the port.

Yan Tian West Port handles container transportation, and increasing container throughput at West Port had resulted in the port operating beyond its designed capacity since 2006. The port won approval from the National Development and Reform Commission in 2008 for a CNY 3.84 billion expansion project.

The company will build three 50,000-ton container berths with designed capacity of 1.8 million TEUs per year as part of the expansion which is projected to take three years to complete.

Hutchisom Whampoa Yantian Port will inject CNY 873 million into the company. Bank loans will account for CNY 2.5 billion of the sum needed for the expansion.

(Sourced from yicai.com)