NEWS

The four major shipping central enterprises have many cross-overs and high overlap, and excessive competition is not necessary: COSCO Group, China Shipping Group, China Merchants Bureau and Sinotrans Changhang Group have many cross-overs in the main business sectors such as container transportation, dry bulk transportation and oil transportation, and the degree of specialization is limited. COSCO China Shipping has a higher degree of business overlap in the collection and bulk transportation, and excessive competition for goods between different central enterprises, or even between different branches within the same enterprise, often occurs, resulting in unnecessary waste of resources and loss of revenue.

integration of consolidation is the most beneficial, COSCO China Shipping has a synergistic effect: if COSCO and China Shipping combined capacity will reach 1.56 million TEU, ranking 4th in the world, doubling its position and market share will effectively enhance pricing power, control the pace of capacity delivery, and accelerate the elimination of old excess capacity.

In terms of
operation, COSCO has a large customer base and CKYHE alliance qualification, and has a deep foundation for cooperation with major customers. COSCO is good at controlling costs and has more advantages in efficiency. COSCO has a wide coverage of routes, many overseas sales outlets and a high market share of China Shipping domestic trade routes. The combination of the two is beneficial to increase revenue and reduce expenditure, improve efficiency and reduce consumption, and form complementarity in business and route network.

COSCO China Shipping Cooperation has a foundation, China Mining Transportation Point or a new starting point: COSCO has conducted in-depth cooperation in many aspects, such as price increase in Europe and the United States, joint operation of domestic trade lines, group strategy, etc., and the leaders of the two major groups have more experience in each other's work, management and mass base. The bulk transportation platforms of the two major groups jointly set up China Mining Transportation. The purchase of four VALEMAX ships under Brazil's Vale and the signing of long-term transportation agreements with them will be another major event for the two major groups to participate in foreign projects and implement the Belt and Road strategy. In the future, the two major groups are expected to carry out more business and capital level integration through the new platform of China Mining Transportation.