COSCO Shipping Co., Ltd. (Coscol) says it will set up a joint venture business with its wholly-owned subsidiary Coscol (HK) Investment & Development Co. in the Tianjin Free Trade Zone.

The two companies plan to invest a total of US$98 million in the new company, Xinhua reports.

Coscol will purchase a 70 per cent stake in the JV for $35 million, while its Hong Kong based subsidiary will spend $15 million on purchasing the remaining 30 per cent interest in the new company.

State media added that the rest of the firm's registered capital will come from the net book value of two of Coscol's ships.