A Letter of Intent (LoI) was signed yesterday by DP World for the development of the Man-made Island Phase 2 Container Terminal project at Tianjin, China, for a total estimated cost of $500 million. The project is a joint venture between Tianjin Port Group (TPG) and DP World through its subsidiary, DP World Tianjin Holdings Limited.
The project, which is located in the Bohan area in the northern part of the country, includes plans for a 140-hectare terminal area, with a 1,400 meter quay length, according to Khaleej Times.
The estimated yearly handling capacity of the terminal is set to be 2.2 million TEUs (20-foot equivalent container units). The Man-made Island Phase 2 is one of the major projects in China's economic development plan.
Preparation work for the project, including reclamation procedures have already begun. The terminal's operation is set to begin 2011. The city of Tianjin is home to China's fifth largest container port, handling 4.8 million TEUs a year.
In addition to the proposed terminal, DP World and TPG currently operate the Tianjin Orient Container Terminal (TOCT) at Tianjin Port in a joint venture.
DP World operates six terminals in China, with a total handling capacity of 10-11 million TEUs.
