Greater ChinaOperations

Market likes Sinotrans merger news

Shares in Sinotrans Ltd and Sinotrans Shipping leapt in double-digit figures today in early trading on the Hong Kong bourse following revelations the group is being forced by Beijing to merge with China Merchants Energy Shipping (CMES).

Local shipping news site claimed this week that CMES and Sinotrans&CSC will merge.

According to data provided exclusively to Splash by online pricing vehicle,, the combined entity would become the 24th largest shipping line in the world with combined fleet of 208 vessels totalling just shy of 10m dwt and worth $3.51bn.

The news follows on from last month’s details of a planned tie up between the country’s top two shipping lines, Cosco and China Shipping.

Commenting on the CMES/Sinotrans&CSC deal, Charles De Trenck, a Splash columnist and long term watcher of the Chinese shipping scene, said: “It appears to make sense to bring fleets together if overheads and [state-owned enterprise] managements get streamlined.”

Non-container assets will likely be the easier portion, De Trenck reckoned.


CMES Sinotrans merger

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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