Hong Kong-based China Merchants Holding (International) Co. will invest 4.5 billion yuan (546.8 million US dollars) to build a large container port and a logistics center in Qingdao, a coastal city in east China's Shandong Province.

Hu Zheng, vice president and executive director of the corporation, said the money will be used to build two 100,000-dwt, three 30,000-dwt and one 20,000-dwt container docks.

In addition, two 30,000-dwt multi-functional berths as well as supporting facilities will also be set up, increasing the coastline in use to 2,272 meters.

The annual handling capacity of the port will reach 2.5 million TEU (Twenty foot equivalent unit), said Hu.

The investment made by the China Merchants Holding was approved by the State Development and Reform Commission in late July and the span of operation and management was stipulated to be 50 years, according to company sources.

The company has previously made heavy investments in Hong Kong, Shanghai, Tianjin and southern provinces of Fujian, Guangdong and Zhejiang.

China Merchants Holding, a pioneer of national industry and commerce,was founded in 1872. As a key state-owned enterprise, it concentrates on investing in and operating ports.

Source: Xinhua