A Maersk subsidiary, APM Terminals, has formed a joint venture with Dachan Bay Port Investment and Development and China Merchants Holdings to build a US$1 billion container terminal in Shenzhen.

APM Terminals will have a 51% stake in the joint venture, Shenzhen Dachan Bay Port Investment 35% and China Merchants the remaining 14%.

Called the Dachan Phase 2 project it will be a four-berth facility with projected annual capacity of 3.2 million TEUs. The first two berths will be operational by the end of 2009 and the remaining in 2010.

The project, which still requires government’s approval, will cover land area of one million sq m and a coastline of about 1,700m.

A senior manager with a shipping line said Dachan Bay, 10 km north of Chiwan port, is better placed geographically than other west Shenzhen ports.