China COSCO Shipping Corporation Limited, abbreviated as COSCO Shipping, is a Chinese state-owned multinational conglomerate headquartered in

Shanghai Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flowin ...

. The group is focused on

marine transportation Maritime transport (or ocean transport) and hydraulic effluvial transport, or more generally waterborne transport, is the transport of people (passengers) or goods (cargo) via waterways. Freight transport by sea has been widely used thro ...

services. COSCO Shipping was established in January 2016 by the merger of COSCO Group and China Shipping Group. As of March 2020, the company's fleet was among the largest in the world – 1310 vessels with a capacity of 105.92 million DWT.

Predecessors

COSCO

China Ocean Shipping (Group) Company, founded in 1961 and headquartered in

Beijing } Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...

, was a Chinese state-owned multinational transportation conglomerate. It was the largest dry bulk carrier in China and one of the largest dry bulk shipping operators worldwide. In addition, the Group is the largest liner carrier in China. Its container shipping subsidiary – COSCO Container Lines – was one of the world's top 10 container carriers in terms of fleet capacity. COSCO was among China's top 15 brands in 2012.

China Shipping

China Shipping (Group) Company was founded in 1997 and was headquartered in Shanghai. The group was a Chinese state-owned multinational transportation conglomerate. By May 2014, China Shipping's container shipping subsidiary –

China Shipping Container Lines COSCO Shipping Development Co., Ltd., stylized as COSCO SHIPPING Development is a financial services company based in Shanghai, China. It was known as China Shipping Container Lines (CSCL) and was among the world's largest container liner co ...

– operated 156 container vessels with 656,000 TEU capacity. China Shipping Container Lines' container ship ''

CSCL Globe ''CSCL Globe'' is a container ship owned and operated by COSCO Shipping and previously, China Shipping Container Lines (CSCL). The first of a class of five ships intended for Asia-Europe trade routes, she was the largest container ship in the ...

'' was the world largest in 2014. China Shipping's other subsidiaries operated

oil tanker An oil tanker, also known as a petroleum tanker, is a ship designed for the bulk transport of oil or its products. There are two basic types of oil tankers: crude tankers and product tankers. Crude tankers move large quantities of unrefined cru ...

s, tramps, passenger ships, and car carriers.

History

In January 2016, the

Chinese State Council The State Council, constitutionally synonymous with the Central People's Government since 1954 (particularly in relation to local governments), is the chief administrative authority of the People's Republic of China. It is chaired by the pre ...

approved the merger of COSCO and China Shipping, forming COSCO Shipping. The merger – which occurred during a downturn in the marine transportation industry – sought to achieve

economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables ...

. The merger was also part of a Chinese government strategy to restructure its state-owned shipping sector. Shortly after, the subsidiary COSCO Shipping Holdings partnered with

Shanghai International Port Group Shanghai International Port (Group) Co., Ltd. (SIPG) is the exclusive operator of all the public terminals in the Port of Shanghai. It is a component of SSE 180 Index as well as CSI 300 Index and sub-index CSI 100 Index. Its headquarters are ...

to acquire the majority stake of Orient Overseas (International) from

Tung Chee-hwa Tung Chee-hwa (; born 7 July 1937) is a Hong Kong businessman and politician who served as the first Chief Executive of Hong Kong between 1997 and 2005, upon the transfer of sovereignty on 1 July. He is currently a vice-chairman of the Chin ...

- Chee-chen families. The deal was completed in August 2018. Orient Overseas (International) is the parent company of

OOCL Orient Overseas Container Line, commonly known as OOCL, is a container shipping and logistics service company with headquarters in Hong Kong. The company is incorporated in Hong Kong as Orient Overseas Container Line Limited and separately inc ...

. This will make it one of the world's largest container shipping company with a fleet of over 400 vessels. In April 2016 the company agreed to buy 51% of Piraeus Port Authority, which is listed on the Athens Stock Exchange () and is a constituent of the FTSE/Athex Large Cap index. Its subsidiary ''Piraeus Container Terminal'' (''PCT'') has been operating two Piers at Piraeus Port since 2009. In January 2017, the company was awarded $26.1 billion by the China Development Bank to participate in the Belt and Road Initiative. The funding would run through 2021. COSCO has used the finances to invest in its ports and infrastructure projects. Navire JIA HUI SHAN à quai

In May 2017, the company signed a deal with Kazakhstan's national railway company to take 24% stake in an inland port in the Khorgos Eastern Gate Special Economic Zone. In December 2018, COSCO Shipping Ports secured a 35-year concession to operate and develop a newly built container terminal in

Khalifa Port Khalifa Port () is the Abu Dhabi Ports' flagship deepwater port. It is a gateway to Abu Dhabi and handles all of the emirate’s container traffic. The transfer of container traffic from Zayed Port was completed in December 2012. Khalifa Port ...

. In November 2019, the company invested $660 million to upgrade the Piraeus container port, Greece's largest port. On May 11, 2020,

COSCO Shipping Ports COSCO Shipping Ports Limited, stylized as COSCO SHIPPING Ports is a Hong Kong listed company and investor in ports. The company is formerly known as COSCO Pacific Limited and was an indirect subsidiary of China Ocean Shipping (Group) Company (COSC ...

, Dongfeng Commercial Vehicle, and

China Mobile China Mobile is the trade name of both China Mobile Limited () and its ultimate controlling shareholder, China Mobile Communications Group Co., Ltd. (, formerly known as China Mobile Communications Corporation, "CMCC"), a Chinese state-ownedSt ...

successfully transported a

shipping container A shipping container is a container with strength suitable to withstand shipment, storage, and handling. Shipping containers range from large reusable steel boxes used for intermodal shipments to the ubiquitous corrugated boxes. In the context of ...

within Xiamen Ocean Gate Terminal using an AGV guided by 5G. The achievement demonstrated an application of 5G technology in developing a "smart port". At the event, the three companies announced a roadmap for large-scale implementation of 5G technology in ports. On September 25, 2019, the

US Treasury Department The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and ...

sanctioned the tanker subsidiary of COSCO Shipping, COSCO Shipping Tanker (Dalian) Seaman & Ship Management, as well as COSCO Shipping Tanker (Dalian), for breaching the

United States sanctions against Iran The United States has since 1979 applied various economic, trade, scientific and military sanctions against Iran. United States economic sanctions are administered by the Office of Foreign Assets Control (OFAC), an agency of the United States De ...

. However, the parent company of the aforementioned companies were not sanctioned. The US lifted the sanctions against COSCO Shipping in January 2020. In July, 2020, the company entered into an agreement with Alibaba and its affiliate Ant Group, to jointly promote the cooperation on and application of shipping blockchain. COSCO Shipping and its predecessor COSCO, has a Hong Kong division, COSCO Shipping (Hong Kong) Limited, a private company formerly known as Cosco (Hong Kong) Group Limited. This acquired listed company COSCO Shipping International (at that time, Shun Shing Holdings) as a vehicle of

backdoor listing A reverse takeover (RTO), reverse merger, or reverse IPO is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. Sometimes, conversely, the public compa ...

in 1997 and bought the real estate businesses, such as Shun Shing Construction and an office building, from COSCO Shipping International in the 2000s. Cosco (HK) Group itself also purchased a 20% stake in Lai Sun Hotels in 1997. However, after the 1997 Asian financial crisis,

Lai Sun Development Lai Sun Development ("LSD") is a property developer in Hong Kong, public company listed on the Hong Kong Stock Exchange established in 1987 by the textiles magnate Lim Por-yen.Raymond Wang and Teddy NgLai Sun Group founder Lim dies at 93, '' The S ...

, the parent company of Lai Sun Hotels, scrapped the IPO of Lai Sun Hotels and sold all the assets of Lai Sun Hotels instead. The company was a shareholder in the Chinese real estate developer,

Sino-Ocean Group Sino-Ocean Group Holding Limited is an investment holding company that engages in the property investment and development activities in the People's Republic of China. The company develops real estate projects such as mid to high-end residential p ...

. The stake was sold in 2010. It was reported that the

SASAC The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) is a special commission of the People's Republic of China, directly under the State Council. It was founded in 2003 through the consolidation of vario ...

of the

State Council State Council may refer to: Government * State Council of the Republic of Korea, the national cabinet of South Korea, headed by the President * State Council of the People's Republic of China, the national cabinet and chief administrative auth ...

has ordered Government owned companies to sell real estate development unit if it is not their main businesses.

COSCO Shipping Holdings

COSCO Shipping Holdings Co., Ltd. , formerly China COSCO Holdings Company Limited was established in the

People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...

in 2005. It is the

listed Listed may refer to: * Listed, Bornholm, a fishing village on the Danish island of Bornholm * Listed (MMM program), a television show on MuchMoreMusic * Endangered species in biology * Listed building, in architecture, designation of a historicall ...

flagship and a subsidiary of

China Ocean Shipping (Group) Company China Ocean Shipping Company, Limited, formerly China Ocean Shipping (Group) Company, commonly known for its abbreviated name COSCO Group, or simply, COSCO, is a former Chinese Government owned shipping and logistics services supplier compan ...

("COSCO Group"), the largest integrated

shipping Freight transport, also referred as ''Freight Forwarding'', is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been ...

company in China and the second largest in the world. China COSCO Holdings provides a wide range of

container A container is any receptacle or enclosure for holding a product used in storage, packaging, and transportation, including shipping. Things kept inside of a container are protected on several sides by being inside of its structure. The term ...

dry bulk Bulk cargo is commodity cargo that is transported unpackaged in large quantities. Description Bulk cargo refers to material in either liquid or granular, particulate form, as a mass of relatively small solids, such as petroleum/ crude oi ...

shipping,

third party logistics Third-party logistics (abbreviated as 3PL, or TPL) in logistics and supply chain management is an organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services. Third-party logisti ...

freight forwarding A freight forwarder, or forwarding agent, is a person or company who, for a fee organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.

Terminal Terminal may refer to: Computing Hardware * Terminal (electronics), a device for joining electrical circuits together * Terminal (telecommunication), a device communicating over a line * Computer terminal, a set of primary input and output dev ...

and container leasing domestically and internationally. It is

headquartered Headquarters (commonly referred to as HQ) denotes the location where most, if not all, of the important functions of an organization are coordinated. In the United States, the corporate headquarters represents the entity at the center or the top ...

History

On 30 June 2005, its H shares were listed on the Hong Kong Stock Exchange. On 26 June 2007, its A shares were listed on the Shanghai Stock Exchange. China COSCO recorded a loss for financial years 2011 and 2012 and could face a delisting from the Shanghai Stock Exchange if it made a loss for the third consecutive year. On 27 March 2013, China COSCO recorded a profit of RMB 235.47 million for the 2013 financial year and avoided the possible delisting.

Reorganization and asset restructuring

In December 2015, COSCO Group underwent a major reorganisation with

China Shipping Group China Shipping Group Company, Limited, formerly China Shipping (Group) Company, is a former Chinese state-owned shipping conglomerate. It is now one of the intermediate holding companies for another Chinese state-owned conglomerate, China COSCO ...

to form the new China COSCO Shipping Corporation Limited. As part of the reorganization, China COSCO would sell 100% of equity interest in China COSCO Bulk Shipping (Group) Co., Ltd. to COSCO Group, representing the disposal of its dry bulk shipping business. After the reorganization, China COSCO would focus on the container shipping business. In addition, China COSCO would buy certain amount of equity interest of a total of 30 onshore agency companies from

("CSCL") and its subsidiary. China COSCO would also enter into a lease agreement with CSCL, under which it would lease the vessels and containers owned or operated by the latter. After the transaction and agreement, China COSCO would acquire the container services-related assets previously owned by CSCL, and become one of the world's leading container shipping and terminal service providers.

References

External links

* {{authority control Companies based in Shanghai Transport companies established in 2016 Government-owned companies of China Chinese brands Multinational companies headquartered in China

Predecessors

COSCO

China Shipping

History

COSCO Shipping Holdings

History

Reorganization and asset restructuring

See also

References

External links