COSCO Shipping Shengshi, a vehicles carrier ship, Sète, 2018
China COSCO Shipping Corporation Limited, abbreviated as COSCO Shipping, is a Chinese state-owned multinationalconglomerate headquartered in Shanghai. The group is focused on marine transportation services.[2] COSCO Shipping was established in January 2016 by the merger of COSCO Group and China Shipping Group.[3]
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.
China Ocean Shipping (Group) Company, founded in 1961 and headquartered in Beijing, 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.[4] 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.[5]
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 – operated 156 container vessels with 656,000 TEU capacity.[6] China Shipping Container Lines' container ship CSCL Globe was the world largest in 2014.[7] China Shipping's other subsidiaries operated oil tankers, tramps, passenger ships, and car carriers.
History
In January 2016, the Chinese State Council approved the merger of COSCO and China Shipping, forming COSCO Shipping.[3] The merger – which occurred during a downturn in the marine transportation industry – sought to achieve economies of scale.[8][9] The merger was also part of a Chinese government strategy to restructure its state-owned shipping sector.[10]
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.[15]
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.[16] In December 2018, COSCO Shipping Ports secured a 35-year concession to operate and develop a newly built container terminal in Khalifa Port.[17] In November 2019, the company invested $660 million to upgrade the Piraeus container port, Greece's largest port.[18]
On September 25, 2019, the US Treasury Department 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. However, the parent company of the aforementioned companies were not sanctioned.[21] The US lifted the sanctions against COSCO Shipping in January 2020.[22]
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.[23]
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 in 1997 and bought the real estate businesses, such as Shun Shing Construction and an office building, from COSCO Shipping International in the 2000s.[clarification needed][24][25] Cosco (HK) Group itself also purchased a 20% stake in Lai Sun Hotels in 1997.[26] However, after the 1997 Asian financial crisis, Lai Sun Development, the parent company of Lai Sun Hotels, scrapped the IPO of Lai Sun Hotels and sold all the assets of Lai Sun Hotels instead.[clarification needed][27]
In 2023 the Bulgarian agent of COSCO Shipping lines, Three Stars Ltd, was accused in the local media of racketeering and violating antitrust laws.[28]
The company was a shareholder in the Chinese real estate developer, Sino-Ocean Group. The stake was sold in 2010.[29] It was reported that the SASAC of the State Council has ordered Government owned companies to sell real estate development unit if it is not their main businesses.[30]
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.[33]
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 China Shipping Container Lines ("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.[34]
^Dooley, Howard J. (Spring–Summer 2012). "The Great Leap Outward: China's Maritime Renaissance". The Journal of East Asian Affairs. 26 (1). Institute for National Security Strategy: 57. JSTOR23257908.
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