On 5 December 2011, China Resources and Transportation Group (00269.HK)(CRTG) entered into an investment cooperation agreement with the Government of Qingshuihe County, the Inner Mongolia Autonomous Region, the PRC in relation to a coal processing large-scale comprehensive logistics base proposed to be built close to the Yingpanliang exit of the Zhunxing coal expressway currently being constructed by CRTG's subsidiary, Inner Mongolia Zhunxing Heavy Haul Expressway Company Limited.

CRTG and the Qingshuihe Government have agreed that the site area of the logistics base will be 15 sq km in total. The Government will be responsible for the relocation of the current residents but CRTG will be responsible for bearing the RMB5,000 per mu (RMB7.5 million per sq km) relocation compensation that will be payable. CRTG shall pay 20% of the total relocation compensation to the Government within one month after the site area is properly measured and the relocation is expected to be completed within six months and the remainder relocation compensation will be paid according to the progress of the relocation. The land will be made available to CRTG in accordance with law on a land grant basis, and the land use right will be granted to CRTG for 50 years. The parties have agreed that all of the land grant fee will be invested in the construction of supplementary facilities of the coal logistics center.

Upon its completion, the base is expected to comprise when completed a fully enclosed coal processing facility that includes bunkering, washing, selection, processing, storage and despatch facilities, including five production lines processing up to 10 million tons of coal per annum and a 3 million ton coal storage facility, as well as other supplementary facilities. Construction work is expected to commence in June 2012.