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K Line, U-Ming and Kuang Ming forming dry bulk venture with Taiwan Power Company

Taiwan’s state-run Taiwan Power Company (TPC) is currently in negotiations with potential partners to set up a bulk shipping joint venture to expand its presence in shipowning in order to meet its coal shipping demands.

Splash understands that two Taiwanese domestic shipping companies, U-Ming Marine and Kuang Ming Shipping, and Japanese shipping major Kawasaki Kisen Kaisha (K Line) are involved in the negotiations.

When contacted by Splash, a spokesperson for U-Ming confirmed that a group of companies including U-Ming are in negotiations with TPC to establish a joint venture, and a detailed joint venture plan including the final partners and shareholding percentage is likely to be finalised in the third quarter of this year.

It will not be the first time U-Ming has set up a joint venture with a domestic cargo owner. In 2010, Taiwan’s state-run oil refiner CPC Corporation formed a tanker joint venture, Global Energy Maritime, with U-Ming and Chinese Maritime Transport.

TPC is the largest power company and coal importer in Taiwan with annual coal import volumes of up to 30m tons. The company now owns a fleet of six post-panamax bulk carriers. Four of the vessels are operated by U-Ming and the other two are operated by Kuang Ming.

K Line also has long term chartering ties with TPC. K Line officials have not responded to questions sent by Splash earlier today.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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