Chu Kong Shipping has entered into a strategic cooperation framework agreement with China Merchants, according to ET Net News.

Under the deal, Chu Kong is to sell 20 percent of its equity interest in Chu Kong River Trade Terminal Co to China Merchants.

Both companies are expected to benefit from strong complementary advantages in business segments, strategic development and resources through the collaboration.

China Merchants will urge major shipping companies in the Shenzhen western port area to use Chu Kong terminals as their primary port, container return point and stacking area.