Venezuelan Transportation Minister Francisco Garces says expansion of the port at Puerto Cabello will allow it to handle cargo from much larger ships.

During a televised ceremony on Wednesday, Garces signed a memorandum of understanding with China Harbour Engineering Company to carry out the project. The terms of the agreement were not disclosed.

Venezuela has stepped up diplomatic and trade ties with China and President Hugo Chavez has increased oil sales to China.

Puerto Cabello is Venezuela's busiest seaport, handling most of the cargo that enters the import-dependent country.