(Yicai) Dec. 31 -- Shares in Xiamen Port Development soared by the exchange-imposed limit today after the Chinese port services provider said it is teaming up with Singapore’s PSA Northeast Asia Supply Chain, which is a unit of its Singaporean counterpart, port operator PSA International, to build a smart logistics center at Xiamen Port that will integrate sea and land freight as well as global trade.

Xiamen Port Development’s share price [SHE:000905] closed up 10 percent at CNY7.16 (USD1).

The Xiamen Port Smart Logistics Center will be a smart logistics service center for ports covering an area of 650,000 square meters that will be located adjacent to Xiamen Port’s main international container area, the Xiamen-based company said yesterday.

The smart logistics hub will provide three main services, namely sea-rail intermodal transportation, yard operations and port-adjacent logistics, it said. It will be comprised of five specific functional zones, namely a sea-rail transportation zone, a modern logistics center, a global container dispatch center, an Asia-Pacific transshipment and container exchange hub and a port logistics innovation development base.

Xiamen Port Development did not disclose the estimated total investment amount in and construction timetable of the project, but it said that it plans to form a joint venture with PSA Northeast Asia, which has already invested in a number of port logistics projects in China, to build and operate the hub.

The JV, with a registered capital of CNY600 million (USD82 million), will be controlled by Xiamen Port Development which will take an 80 percent stake while PSA Northeast Asia will hold the remainder. The partners also agreed to attract other strategic investors for the five functional zones in the hub at a later stage.

The project will promote Xiamen Port's multimodal transportation operations and form a new international trade corridor that links land, sea and global trade, it added.

Editor: Kim Taylor