Co-owners of Southampton Container Terminals, P&O Ports has formed a joint venture company with French container shipping line CMA-CGM, a major customer of the city's docks.

The new company is to acquire 80 per cent of Egis Ports SA, the leading container terminal operator in France, which has a presence in Le Havre, Marseille and Fos.

This move, subject to French government approvals, due to be completed by the end of the year, will make the new P&O Ports and CMA-CGM joint venture the largest terminal operator in France.

P&O chairman Lord Sterling said: "It is an important step in the expansion of P&O Ports' northern European network which complements existing interests in Southampton, Tilbury and Antwerp.

"This acquisition is an excellent strategic fit for P&O Ports, enabling us to take a key position in France with significant growth potential. We know CMA well and are delighted that they will be partnering us.''

P&O Ports owns 51 per cent of Southampton Container Terminals while Associated British Ports, operators of the city's docks, has the other 49 per cent.

Egis recently signed a letter of intent for an additional two berths in a new development at Le Havre, Southampton's twin city, and has exclusivity for further expansion opportunity in the container terminal of Fos near Marseille.

Jacques Saade, chairman of CMA-CGM, said: "France is our home country and this is an important investment and expansion into the terminal business in support of our liner activities.

"CMA-CGM will entrust the daily management of the new company to P&O Ports so as to ensure the neutrality of the service towards other shipping lines and confirm the objective of running the terminals as common user facilities.''