China Eastern Airlines Corp., Singapore Airlines and partners agreed to combine three air-cargo carriers to bolster their presence in Shanghai, China’s busiest air freight center.

China Eastern, SIA’s cargo unit, a unit of Taiwan-based EVA Airways Corp. and China Ocean Shipping (Group) Co. will invest a total of 2.05 billion yuan ($406 million) in China Cargo Airlines to support the takeover of two other freight carriers, according to a Hong Kong stock exchange statement today.

China Eastern is consolidating freight operations following the takeover of Shanghai Airlines Co. to strengthen its presence in Shanghai, where the company is based. The move will help the carrier compete with a Cathay Pacific Airways and Air China cargo venture that’s due to start services by Dec. 31.

“Managing one company rather than three will help save costs,” said Kelvin Lau, a Hong Kong-based analyst at Daiwa Institute of Research. “Exports are still in the growing phase for China and imports are also doing quite well.”

China may become the world’s largest exporter and second-biggest importer by the end of the year, with total foreign trade of $3.8 trillion in 2010, Xinhua News Agency said Dec. 16, citing Chinese Commerce Minister Chen Deming.