Beijing vows further consolidation among state-owned lines

Beijing vows further consolidation among state-owned lines

China’s era of mergers of state-owned lines is not over yet. In recent years Cosco has merged with China Shipping, China Merchants with Sinotrans and Changjiang Shipping, giving the country shipping titans that are among the world’s largest fleets. Further consolidation is being sought however from Beijing as the nation’s state-backed lines still struggle financially.

Xiao Yaqing, head of state-owned Asset Supervision and Administration Commission (SASAC), told Reuters yesterday China will push ahead with more mergers and consolidations among state-owned lines.

The most likely initial focus of further consolidation, Splash sources in Beiing say, will be among provincial lines which will be folded into centrally controlled giants such as Cosco.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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