China’s state-run construction giant China Communications Construction Company (CCCC) has entered into an agreement with port equipment manufacturer Shanghai Zhenhua Heavy Industries (ZPMC) to collaborate on port operations.
Under the agreement, three subsidiaries of CCCC will form a joint venture with ZPMC and the new company will focus on investment and operations of overseas ports.
CCCC and ZPMC will take a 62% and 38% equity interest in the jv respectively.
CCCC is the largest transport infrastructure constructor in China while ZPMC is the largest port machinery manufacturer in the world. The set up of the jv marks both the two conglomerates’ entry into the port operation sector.