China Merchants Group, a Hong Kong-based conglomerate with extensive port business, is hoping to replicate the success of Shenzhen's Shekou Industrial Zone in developing Djibouti port projects.

Djibouti is a country located in the Horn of Africa. It is of strategic significance as a main channel for international maritime cargo.

China Merchants Port Holdings Co, the group's port and logistics arm, invested in the Port of Djibouti in 2012 and has completed the construction of a new port with greater handling capability.

Li Xiaopeng, president of CMG, said in an exclusive interview with China Daily: "Making full use of Djibouti's geographical advantages, we are in the process of making the country the Shekou of East Africa - a hub for regional shipping, logistics and trade."

"We will use our experience in Shekou and adjust the model to local conditions. We will put this model into practice in countries such as Djibouti," he says.

The group wants to use the model of Shekou, dubbed "Port-Park-City" or PPC as a template to build an industrial park and subsequently a city to supplement the initial development of a port.

The Port of Djibouti is expanding along the lines of the Shekou model. The group has invested in the development of a 48.2-square-kilometer free trade zone in Djibouti with $400 million (378.8 million euros; 328.3 million) investment in November 2016.

The plan for the free trade zone in Djibouti includes a trade and logistics park, an export-processing zone and financial services.

Djibouti is also expecting urban development in the old port area after the operation of the new port commences later this year, and it aims to build a new business district with commercial and tourism facilities.

The innovative model successfully transformed Shekou from a small fishing village into a metropolitan hub. The concept will be applied to the future development of the company's port projects abroad, according to Li.

The majority of its port projects are in areas along the Belt and Road Initiative. The group owns a network of 46 ports in 18 countries and regions. CMG's investment in overseas ports has reached $2 billion, with major projects in Sri Lanka, Djibouti, Nigeria, Togo, Turkey and France.

As the return on investment for the Port of Djibouti has increased, the income of the local workforce involved in the project has been growing steadily at 8 percent annually.

The company is also investing $2 million in providing training opportunities for local staff in a three-year time span, Li says.

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