China Merchants Port Holdings (CMPH) has entered into agreements to establish two joint ventures for the proposed investment in the Djibouti International Free Trade Zone.
CMPH, China Merchants Investment Development (CMID) and Cheer Signal Investment will set up a joint venture named Lac Assal Investment Holding, in which the three parties will hold 40%, 40% and 20% interest respectively. Total investment in the jv is $30m.
In addition, CMPH will set up an operation and management joint venture named East Aden Holding with CMID, Cheer Signal, Dalian Port Group and IZP Network Technologies. The parties will hold a 26.7%, 26.7%, 13.3%, 25% and 8.3% interest in the joint venture respectively.
CMPH acquired a 23.5% interest in Port De Djibouti in 2012. In November 2016, the company reached an agreement with a number of partners to jointly develop Djibouti International Free Trade Zone.
CMPH said Port De Djibouti lies strategically at the Red Sea, making it an ideal transshipment for maritime cargoes passing in and out of East Africa, offering long term growth potential.