(Dow Jones) COPENHAGEN–The port-operating arm of Danish shipping and oil company A.P. Moller Maersk A/S (MAERSK-B.KO) Friday signed an agreement with China’s Ningbo Port Co. for the joint development and operation of facilities at Ningbo port, with Maersk investing about $508 million in the joint venture.
Maersk’s investment constitutes 25% of the equity stake in the development project, which aims to expand the port’s capacity to handle both more container traffic and vessels of a size that includes Maersk’s Triple-E ships currently being built.
With the project, Ningbo, China’s third-largest port, as well as Maersk, will be able to capitalize on strong growth in China in coming years.
The deal was signed by APM Terminals Chief Executive Kim Feifer and Ningo Port Co. Chairman Li Linghong at a ceremony in connection with the three-day state visit to Denmark of China’s President Hu Jintao.
At the same signing ceremony, Maersk also inked a $500 million loan agreement with China Development Bank.
- By Flemming Emil Hansen, Dow Jones Newswires