Singapore's ComfortDelGro (China) Pte Ltd has contracted to operate 50 bus routes in the northeast China city of Shenyang with an investment of 350 million yuan (about 42 million US dollars).

The deal signed at the witness of visiting Singaporean Prime Minister Lee Hsien Loong and Li Wancai, vice governor of Liaoning Province last Friday would allow ComfortDelGro to take over 1,218 buses in Shenyang, capital of Liaoning.

With the assets, the company established the Shenyang subsidiary firm to operate public transport in the city, which is known as a major industrial center in China.

ComfortDelGro has set up 23 joint ventures in China investing in public transport business in 12 cities. Its business in Shenyang started in 1996, when it operated 270 taxies. By 2003, the number of the company's taxi fleet in Shenyang increased to 1,021.

"The signing of the agreement with ComfortDelGro is an important step taken by Shenyang to utilize foreign investment to restructure the public transport business previously dominated by state-owned enterprises," said Song Qi, vice mayor of Shenyang.