Creditors of Australian line Great Southern Shipping Australia (GSS), which filed for insolvency on December 23, have been called to meet in Sydney on January 9 to receive an update on the company’s liquidation.
Great Southern Shipping set up a joint venture with China’s Rizhao Port Group in May to form GSS Australia with a view to buying five containerships to focus on Australia’s coastal trades and voyages to Rizhao in northern China’s Shandong province.
GSS had plans to grow the fleet to 10 ships and to move the weekly service to twice a week as business picks up.
The insolvency preceded Du Chuanzhi, former president of Rizhao Port, being taken away by Chinese discipline inspection authorities on December 29 as part of corruption investigations. The following day the port moved to dismiss 89 middle managers citing a move to optimise its personnel structure.