Nansha Port Phase II

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An agreement was signed between COSCO Pacific Limited and Guangzhou Port Group Co., Ltd. on 16 April 2005 to set up a joint venture company to build and operate a container terminal at Nansha Port Phase II in Guangzhou City, Guangdong Province. The total investment amount of the joint venture company will be approximately RMB4.01 billion and the registered capital will be approximately RMB1.40 billion (US$ 503.14 million). COSCO Pacific holds a 56% equity interest in the joint venture company through its subsidiary, COSCO Ports (Nansha) Limited. COSCO Ports (Nansha) Limited will pay a cash consideration of approximately US$95 million for its share in the registered capital of the joint venture company. AP Moller - Maersk Group holds 33.9 stake of COSCO Ports (Nansha) Limited. Nansha Phase II Terminal will have 6 deep-water berths in total with a quay length of 2,100 meters, a water depth alongside of 14.5 meters, which could be dredged to 17 meters, and a total area of about 2,730,000 square meters. Its annual handling capacity will be up to 4,200,000 TEUs and is expected to be operational in 2006. As the only deep-water port in Guangzhou City, Nansha is capable of serving the fifth and the sixth generation container vessels. It has excellent geographic location, with its hinterland of the Pearl River Delta as one of the most developed areas in China.