China will work with Yemen to expand the two main container ports in the southern cities of Aden and Mokha at a total cost of $ 508 million, according to Yemeni President, Mr Abd-Rabbu Mansour Hadi.

The Chinese government will provide a soft loan to finance the project, according to a senior Yemeni official.

Aden is Yemen's biggest port and one of the largest natural harbours in the world. Mokha, on the Red Sea, is another terminal serving the country.