Cosco Shipping Bulk has signed a strategic framework agreement with China’s largest grain trader COFCO Group in the latest example of Chinese state-run firms joining forces to control supply chains of key materials.
Under the agreement, the two parties will form a partnership to jointly develop business opportunities in international shipping and logistics.
Over the past a few years COFCO has invested in port and logistics companies in major grain export areas including Australia, South America and the Black Sea region, and it plans to build new warehouses and processing facilities in countries including Myanmar, Kazakhstan, Ukraine and Indonesia.
COFCO had previously collaborated with former China Shipping before its merger with Cosco. China Shipping customised a dedicated liner service for COFCO’s grain imports from Latin America using bulker COFCO 1.
COFCO used to own a large bulker fleet before it sold its entire fleet to Genco Shipping in late 2004.