CIG Yangtze Ports, a river terminal operator, plans to take a 40 per cent stake in the development of four berths in Phase II of Wuhan International Terminal Port for HK$800 million (US$102.31 million).

CIG already has an 85 per cent stake in Phase I of Wuhan International Terminal Port in central China which has two berths, according to a report by The Standard, Hong Kong, citing CIG chairman Edward Chow Kong-fai.

The Phase II expansion is expected to increase Wuhan International Terminal's handling capacity to 1.2 million TEU by 2010, making the terminal the biggest in western and central China, and accounting for 80 per cent of Wuhan's total container throughput.

CIG has signed a binding agreement with the Hubei provincial government and the company awaits the official go-ahead. Expansion will be financed by bank loans of other debt instruments, Mr Chow told CIG's recent annual general meeting in Hong Kong.

Mr Chow also revealed that his company intends to move into the logistics industry, as well as being a terminal operator.

Phase I of the terminal handled 107,384 TEU in 2006, an increase of 82 per cent over the previous year, the report added.