"We hope it could reach 10 million by 2010, with an expected annual increase of 20 per cent," said Wang Guanghao, chairman of Tianjin Port Development, during Tianjin Port's initial public offering (IPO) launch.

Thanks to the high returns on investments in new container terminals, it is quite hard for Tianjin Port to cash in on the business opportunity by itself, and seeking for strategic investors in the industry is a common practice, said Yu.

China's major ports including Shanghai Yangshan port, Qingdao port and Shenzhen Yantian port have signed strategic co-operation deals with international terminal and transportation firms to set up container terminals in previous years.

The Tianjin venture will invest, construct and operate a container-handling terminal in the Beigangchi area of the port.

The terminal would have a total quay length of 1,100 metres with three container handling berths and a container stacking yard larger than 700,000 square metres, which would be built in the fourth quarter of 2006 and go into operation by 2008.

Tianjin Port would fund the investment from proceeds raised in its IPO, launched in May.

Tianjin Port shares rose a marginal 0.441 per cent to close at HK$2.28 (28 US cents) yesterday.

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