Chinese construction company China Harbour Engineering Company has signed a memorandum of understanding with Venezuelan Transportation Minister Francisco Garces to build a container terminal at Puerto Cabello port.

The conditions of the agreement, which could not be released, has been reportedly signed on September 1.

Garces said that the new terminal at Puerto Cabello will allow box carriers of significantly larger sizes to dock.

Puerto Cabello is the busiest port in Venezuela, and is believed to handle 70% of container shipments in the country.

Meanwhile, China Harbour Engineering Company is also involved in the development of Sri Lanka's Hambantota port, which is scheduled to be completed by November 2010.

When completed, Hambantota Port will be Sri Lanka's second largest port after Colombo.