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China Merchants Holdings (International) Co Ltd said it would team with Zhanjiang Municipal government to form a Zhanjiang Port investment joint venture with registered capital of 3.6 billion yuan (US$479.1 million).

The Hong Kong-listed port investment group said in a statement late on Sunday it would expand its port operation by investing 1.62 billion yuan in cash for its 45 percent stake in the joint venture, Zhanjiang Port (Group) Co Ltd, while the Zhanjiang Municipal government would hold 55 percent stake.

The joint venture will deal in warehousing, transhipment of cargos and packaging of bulk goods, leasing of port facilities and general cargo transportation.