Cosco Shipping Ports has announced that its subsidiary Shanghai Terminal has proposed to enter into a consortium agreement with Cosco Shipping Tianjin and other investors to acquire up to 40% equity shares in CCCC Dredging via a public tender process.

The total value of the deal is expected be around RMB13.5bn ($1.9bn).

CCCC Dredging is a subsidiary of China Communications Construction Company (CCCC), and is the largest dredging company in the world. The company’s dredging business accounts for approximately 70% of the domestic market share.

Cosco Shipping Ports believes the proposed investment would support the company’s strategy of extending its global footprint to build a global terminal network to serve shipping alliances and is in line with the government’s “Belt and Road” initiative.