COSCO Shipping

Last updated
China COSCO Shipping Corporation Limited
Native name
中国远洋海运集团有限公司
Company type State-owned enterprise
Industry Marine transportation
Predecessor
  • COSCO Group
  • China Shipping Group
Founded2016;9 years ago (2016)
Headquarters
Shanghai
,
China
Area served
Worldwide
Key people
  • Lirong Xu (Chairman/CEO)
  • Zajian Wong (COO)
  • Meifeng Chen (CFO)
Services Marine transportation
Stevedoring
Chartering
Shipbuilding
Revenue$44,655 million (2020) [1]
Total assets $125,906.4 million (2020) [1]
Total equity $28,202.6 million (2020) [1]
Number of employees
118,243 (2020) [1]
Divisions COSCO Shipping Lines
Subsidiaries
Website en.coscoshipping.com OOjs UI icon edit-ltr-progressive.svg
COSCO Shipping Shengshi, a vehicles carrier ship, Sete, 2018 Cosco Shengshi (ship, 2011), Sete 02.jpg
COSCO Shipping Shengshi, a vehicles carrier ship, Sète, 2018

China COSCO Shipping Corporation Limited (branded as COSCO Shipping) is a Chinese state-owned multinational marine transportation service conglomerate, headquartered in Shanghai. [2] It was established in January 2016 by the merger between China Ocean Shipping Company and China Shipping Group Company. [3]

Contents

Predecessors

COSCO

China Ocean Shipping (Group) Company, founded in 1961 and headquartered in Beijing, was a Chinese state-owned multinational transportation conglomerate. It was the largest dry bulk carrier in China and one of the largest dry bulk shipping operators worldwide. In addition, the Group is the largest liner carrier in China. [4] Its container shipping subsidiary – COSCO Container Lines – was one of the world's top 10 container carriers in terms of fleet capacity. COSCO was among China's top 15 brands in 2012. [5]

China Shipping

China Shipping (Group) Company was founded in 1997 and was headquartered in Shanghai. The group was a Chinese state-owned multinational transportation conglomerate. By May 2014, China Shipping's container shipping subsidiary – China Shipping Container Lines – operated 156 container vessels with 656,000 TEU capacity. [6] China Shipping Container Lines' container ship CSCL Globe was the world largest in 2014. [7] China Shipping's other subsidiaries operated oil tankers, tramps, passenger ships, and car carriers.

History

In January 2016, the Chinese State Council approved the merger of COSCO and China Shipping, forming COSCO Shipping. [3] The merger – which occurred during a downturn in the marine transportation industry – sought to achieve economies of scale. [8] [9] The merger was also part of a Chinese government strategy to restructure its state-owned shipping sector. [10]

Shortly after, the subsidiary COSCO Shipping Holdings partnered with Shanghai International Port Group to acquire the majority stake of Orient Overseas (International) from Tung Chee-hwa-Chee-chen families. [11] [12] The deal was completed in August 2018. Orient Overseas (International) is the parent company of OOCL. This will make it one of the world's largest container shipping company with a fleet of over 400 vessels. [13]

In April 2016 the company agreed to buy 51% of Piraeus Port Authority, [14] which is listed on the Athens Stock Exchange (Athex :  PPA) and is a constituent of the FTSE/Athex Large Cap index. Its subsidiary Piraeus Container Terminal (PCT) has been operating two Piers at Piraeus Port since 2009. [14]

In January 2017, the company was awarded $26.1 billion by the China Development Bank to participate in the Belt and Road Initiative. The funding would run through 2021. COSCO has used the finances to invest in its ports and infrastructure projects. [15]

Jia Hui Shan, Port of Casablanca Navire JIA HUI SHAN a quai.jpg
Jia Hui Shan, Port of Casablanca

In May 2017, the company signed a deal with Kazakhstan's national railway company to take 24% stake in an inland port in the Khorgos Eastern Gate Special Economic Zone. [16] In December 2018, COSCO Shipping Ports secured a 35-year concession to operate and develop a newly built container terminal in Khalifa Port. [17] In November 2019, the company invested $660 million to upgrade the Piraeus container port, Greece's largest port. [18]

On May 11, 2020, COSCO Shipping Ports, Dongfeng Commercial Vehicle, and China Mobile successfully transported a shipping container within Xiamen Ocean Gate Terminal using an AGV guided by 5G. The achievement demonstrated an application of 5G technology in developing a "smart port". At the event, the three companies announced a roadmap for large-scale implementation of 5G technology in ports. [19] [20]

In July 2020, the company entered into an agreement with Alibaba and its affiliate,Ant Group, to jointly promote cooperation on the application of a shipping blockchain. [21]

COSCO Shipping and its predecessor COSCO, has a Hong Kong division, COSCO Shipping (Hong Kong) Limited, a private company formerly known as Cosco (Hong Kong) Group Limited. This acquired listed company COSCO Shipping International (at that time, Shun Shing Holdings) as a vehicle of backdoor listing in 1997 and bought the real estate businesses, such as Shun Shing Construction and an office building, from COSCO Shipping International in the 2000s.[ clarification needed ] [22] [23] Cosco (HK) Group itself also purchased a 20% stake in Lai Sun Hotels in 1997. [24] However, after the 1997 Asian financial crisis, Lai Sun Development, the parent company of Lai Sun Hotels, scrapped the IPO of Lai Sun Hotels and sold all the assets of Lai Sun Hotels instead.[ clarification needed ] [25]

In 2023 the Bulgarian agent of COSCO Shipping lines, Three Stars Ltd, was accused in the local media of racketeering and violating antitrust laws. [26]

The company was a shareholder in the Chinese real estate developer, Sino-Ocean Group. The stake was sold in 2010. [27] It was reported that the SASAC of the State Council has ordered Government owned companies to sell real estate development unit if it is not their main businesses. [28]

U.S. sanctions

On September 25, 2019, the US Treasury Department sanctioned the tanker subsidiary of COSCO Shipping, COSCO Shipping Tanker (Dalian) Seaman & Ship Management, as well as COSCO Shipping Tanker (Dalian), for breaching the United States sanctions against Iran. However, the parent company of the aforementioned companies were not sanctioned. [29] The US lifted the sanctions against COSCO Shipping in January 2020. [30]

In January 2025, COSCO was added to a United States Department of Defense list of companies that allegedly work with the People's Liberation Army. [31]

COSCO Shipping Holdings

COSCO Shipping Holdings Co., Ltd.
FormerlyChina COSCO Holdings Company Limited
Company type Public company
SEHK:  1919
SSE: 601919
Industry Shipping and Logistics
Founded2005
Headquarters
Shanghai, China(de facto)
Tianjin, China(registered office)
Area served
 People's Republic of China
Key people
Legal Representative and Chairman: Mr. Ma Zehua (马泽华)
Services Container shipping, Dry bulk shipping, Third party logistics, Freight forwarding, Terminal and container leasing
Revenue281,836,600,000 renminbi (2018)  OOjs UI icon edit-ltr-progressive.svg
OwnerCOSCO Shipping
Parent COSCO Shipping (via COSCO Group)
Subsidiaries COSCO Pacific
COSCO Shipping Lines
Website en.hold.coscoshipping.com

COSCO Shipping Holdings Co., Ltd., formerly China COSCO Holdings Company Limited was established in the People's Republic of China in 2005. It is the listed flagship and a subsidiary of China Ocean Shipping (Group) Company ("COSCO Group"), the largest integrated shipping company in China and the second largest in the world.

China COSCO Holdings provides a wide range of container shipping, dry bulk shipping, third party logistics, freight forwarding, Terminal and container leasing domestically and internationally. It is headquartered in Shanghai. [32]

History

On 30 June 2005, its H shares were listed on the Hong Kong Stock Exchange. On 26 June 2007, its A shares were listed on the Shanghai Stock Exchange. [33]

China COSCO recorded a loss for financial years 2011 and 2012 and could face a delisting from the Shanghai Stock Exchange if it made a loss for the third consecutive year. On 27 March 2013, China COSCO recorded a profit of RMB 235.47 million for the 2013 financial year and avoided the possible delisting. [34]

Reorganization and asset restructuring

In December 2015, COSCO Group underwent a major reorganisation with China Shipping Group to form the new China COSCO Shipping Corporation Limited.

As part of the reorganization, China COSCO would sell 100% of equity interest in China COSCO Bulk Shipping (Group) Co., Ltd. to COSCO Group, representing the disposal of its dry bulk shipping business. After the reorganization, China COSCO would focus on the container shipping business.

In addition, China COSCO would buy certain amount of equity interest of a total of 30 onshore agency companies from China Shipping Container Lines ("CSCL") and its subsidiary. China COSCO would also enter into a lease agreement with CSCL, under which it would lease the vessels and containers owned or operated by the latter. After the transaction and agreement, China COSCO would acquire the container services-related assets previously owned by CSCL, and become one of the world's leading container shipping and terminal service providers. [35]

See also

Related Research Articles

<span class="mw-page-title-main">COSCO</span> Chinese shipping and logistics services supplier

China Ocean Shipping Company was a former shipping corporation from 1961 to 2016, owned by the State Council of China. The company merged with China Shipping Group Company to form China COSCO Shipping Corporation in January 2016.

<span class="mw-page-title-main">Port of Hong Kong</span> Port in Hong Kong

The Port of Hong Kong located by the South China Sea, is a deepwater seaport dominated by trade in containerised manufactured products, and to a lesser extent raw materials and passengers. A key factor in the economic development of Hong Kong, the natural shelter and deep waters of Victoria Harbour provide ideal conditions for berthing and the handling of all types of vessels. It is one of the busiest ports in the world, in the three categories of shipping movements, cargo handled and passengers carried. This makes Hong Kong a Large-Port Metropolis.

<span class="mw-page-title-main">COSCO Shipping Development</span> Chinese financing and logistics firm

COSCO Shipping Development Co., Ltd., stylized as COSCO SHIPPING Development is a financial services company based in Shanghai, China.

<span class="mw-page-title-main">OOCL</span> Hong Kong shipping company

Orient Overseas Container Line, commonly known as OOCL, is a container shipping and logistics service company with headquarters in Hong Kong. The company is incorporated in Hong Kong as Orient Overseas Container Line Limited and separately incorporated as Orient Overseas Container Line Inc. in Liberia. The latter was also re-domiciled to the Marshall Islands.

<span class="mw-page-title-main">China Merchants Port</span> Chine partially state-owned company

China Merchants Port Holdings Company Limited is a major conglomerate based in Hong Kong and is involved in a range of businesses such as port operations, general and bulk cargo transportation, container and shipping business, air cargo, logistics park operations and paint products. China Merchants Port is considered as a Red Chip company as the Hong Kong Stock Exchange listing. The company has port facilities in mainland China and Hong Kong, and the predecessor was founded in 1991. The predecessor of the parent company was established in 1872 and was the preeminent industrial and commercial group in mainland China. Before changing its name to China Merchants Port Holdings Company Limited, the company was formerly known as China Merchants Holdings (International) Company Limited.

<span class="mw-page-title-main">COSCO Tower</span> Office in Sheung Wan, Hong Kong

The Cosco Tower is an office tower in the Grand Millennium Plaza in western Hong Kong Island in Hong Kong. The tower has a total structural height of 228 m (748 ft). Construction of the Cosco Tower was completed in 1998. There are 56 floors, 53 of which are above ground.

<span class="mw-page-title-main">Shipping industry of China</span>

In 1961 China established a state-run maritime shipping company and subsequently signed shipping agreements with many countries, laying the foundation for developing the country's ocean transport. That organization developed into the present-day China Ocean Shipping (Group) Company (COSCO). The Chinese government also invested heavily in water transport infrastructure, constructing new ports and rebuilding and enlarging older facilities.

<span class="mw-page-title-main">COSCO Shipping Energy</span> Chinese shipping company

COSCO Shipping Energy Transportation Co., Ltd., stylized as COSCO SHIPPING Energy, is a Chinese oil tanker shipping company with its headquarters in Hongkou District, Shanghai. The company transports crude oil, LNG, and LPG. It is a subsidiary of COSCO Shipping. It is the world's largest oil tanker shipping company in terms of fleet capacity.

<span class="mw-page-title-main">COSCO Shipping International</span>

COSCO Shipping International Co., Ltd., stylized as COSCO SHIPPING International, and formerly COSCO International Holdings Limited, is a Hong Kong listed company and an indirect subsidiary of COSCO Shipping. It engages in ship trading and supplying services. It is headquartered in Hong Kong and it is listed in the Stock Exchange of Hong Kong (SEHK) since 1992.

<span class="mw-page-title-main">China International Marine Containers</span>

China International Marine Containers (Group) Co., Ltd is a Chinese company principally engaged in the manufacture and sale of transportation equipment, such as containers, road transport vehicles and airport ground-handling equipment.

COSCO Shipping Ports Limited, stylized as COSCO SHIPPING Ports is a Hong Kong listed company and investor in ports. The company is formerly known as COSCO Pacific Limited and was an indirect subsidiary of COSCO and now part of its successor, COSCO Shipping. It is mainly engaged in container terminal operations, container manufacturing and leasing, shipping agency and freight forwarding.

<span class="mw-page-title-main">China Shipping Group</span> Shanghai-based maritime logistics firm

China Shipping Group Company was a former shipping corporation from 1997 to 2016, owned by the State Council of China. The company merged with China Ocean Shipping Company to form China COSCO Shipping Corporation in January 2016.

<span class="mw-page-title-main">Port of Piraeus</span> Sea port of Athens, Greece

The Port of Piraeus is the chief sea port of Athens, located on the Saronic Gulf on the western coasts of the Aegean Sea, the largest port in Greece and one of the largest in Europe.

Orient Overseas (International) Limited (OOIL) is a Hong Kong, China based investment holding company involved in international transportation and logistics, and property investment and property development. It is the parent company of Orient Overseas Container Line (OOCL), one of the world's largest container shipping companies.

<i>CSCL Globe</i> Container ship

CSCL Globe is a container ship owned and operated by COSCO Shipping and previously, China Shipping Container Lines (CSCL). The first of a class of five ships intended for Asia-Europe trade routes, she was the largest container ship in the world at the time of her launch in November 2014, with a maximum capacity of 19,100 twenty-foot containers.

<span class="mw-page-title-main">Sabetta</span> Place in Yamalo-Nenets Autonomous Okrug, Russia

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Universe-class container ship

The Universe class is a series of 6 container ships built for COSCO SHIPPING Lines. The ships have a maximum theoretical capacity of 21,237 TEU. They are some of the largest container ships ever built and was the second class of ships to exceed 21,000 TEU of capacity after the OOCL G-class. At the time they were also the largest Chinese built container ships.

Peony-class container ship

The Peony class is a series of 8 container ships built for COSCO SHIPPING Lines. The ships have a maximum theoretical capacity of 13,800 TEU. The ships were built by Shanghai Jiangnan Changxing Shipbuilding at their shipyard in Shanghai.

<span class="mw-page-title-main">COSCO Shipping Lines</span> Chinese container shipping company

COSCO SHIPPING Lines Co., Ltd. is a Chinese international container transportation and shipping company. It is a subsidiary of COSCO Shipping Holdings, and its parent company is China's state-owned COSCO Shipping.

References

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  2. ↑ "COSCO Shipping Business Sectors" . Retrieved 22 May 2020.
  3. 1 2 "China COSCO Shipping History" . Retrieved 22 May 2020.
  4. ↑ "China Ocean Shipping (Group) Company Company Profile". finance.yahoo.com. Retrieved 2021-04-03.
  5. ↑ Dooley, Howard J. (Spring–Summer 2012). "The Great Leap Outward: China's Maritime Renaissance". The Journal of East Asian Affairs. 26 (1). Institute for National Security Strategy: 57. JSTOR   23257908.
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  7. ↑ Tovey, Alan (7 January 2015). "A quarter of a mile long and arriving here now - the world's biggest ship docks in Britain". The Daily Telegraph . Retrieved 16 January 2015.
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  9. ↑ Dupin, Chris (18 February 2016). "Merged China COSCO Shipping Corporation Limited launched" . Retrieved 22 May 2020.
  10. ↑ Knowler, Greg (16 June 2015). "China committed to reforming its state-dominated shipping sector" . Retrieved 22 May 2020.
  11. ↑ 董建華家族旗下東方海外賣盤 中遠海運斥492億收購. HK01 (in Chinese (Hong Kong)). 9 July 2017. Retrieved 14 December 2020.
  12. ↑ 回歸20年 東方海外售予中資 董建華492億賣家業. Oriental Daily (in Chinese (Hong Kong)). 10 July 2017. Retrieved 14 December 2020.
  13. ↑ "China shipping firm Cosco to buy HK rival OOIL for $6.3bn". BBC News. 10 July 2017. Retrieved 10 July 2017.
  14. 1 2 "Greek president hopes for more investments following Piraeus Port Authority deal". Hellenic Shipping News. 11 April 2016. Archived from the original on 26 April 2016. Retrieved 13 April 2016.
  15. ↑ Braden, Dustin (January 13, 2017). "China Cosco gets $26B for Belt and Road initiatives". JOC.com . Retrieved December 2, 2020.
  16. ↑ "China's COSCO to invest in Kazakhstan border project as part of Silk Road drive". Reuters . May 14, 2017. Retrieved December 2, 2020.[ dead link ]
  17. ↑ Gilchrist, Karen (December 9, 2018). "China's Cosco and Abu Dhabi Ports develop Khalifa to support Belt and Road initiative". CNBC . Retrieved December 2, 2020.
  18. ↑ "China, Greece agree to push ahead with COSCO's Piraeus Port investment". Reuters . November 11, 2019. Retrieved December 2, 2020.
  19. ↑ "COSCO Shipping proceed with 5G smart ports vision". Container News. May 12, 2020. Retrieved December 2, 2020.
  20. ↑ Avery, Paul (14 May 2020). ""Smart Port Enabled by 5G + Self-driving Technology" launched in Xiamen". WorldCargo News. Retrieved December 2, 2020.
  21. ↑ "Cosco joins Alibaba to promote shipping blockchain". Global Cargo News. 8 July 2020. Archived from the original on 18 August 2020. Retrieved 8 July 2020.
  22. ↑ 中遠國際14億售寫字樓. Apple Daily (in Chinese (Hong Kong)). Hong Kong. 31 May 2005. Archived from the original on 21 June 2021. Retrieved 14 December 2020.
  23. ↑ 2007 Annual Report (PDF) (Report). COSCO International. 2008. p. 9. Retrieved 14 December 2020.
  24. ↑ "Cosco eyes China hotels management" . South China Morning Post. Hong Kong. 12 April 1997. Retrieved 14 December 2020.
  25. ↑ "Lai Sun scraps float to sell units for $514m" . South China Morning Post. Hong Kong. 11 March 1998. Retrieved 14 December 2020.
  26. ↑ "COSCO SHIPPING Lines and THREE STARS LTD racketeering exporters in Europe" . Iustitia.bg. Bulgaria. 11 November 2023. Retrieved 30 November 2023.
  27. ↑ 中遠國際將悉售遠地 擬1年內執行 料獲利6.6億. Apple Daily (in Chinese (Hong Kong)). Hong Kong. 17 August 2010. Archived from the original on 21 June 2021. Retrieved 14 December 2020.
  28. ↑ 中远明确退出房地产业务时间表. yicai.com (in Chinese (China)). 17 August 2010. Retrieved 14 December 2020.
  29. ↑ Pompeo, Michael (September 25, 2019). "The United States Imposes Sanctions on Chinese Companies for Transporting Iranian Oil" (Press release). US Department of State . Retrieved 2020-12-02.
  30. ↑ Gillis, Chris (January 31, 2020). "US lifts sanctions against COSCO's tanker operation". American Shipper. Retrieved December 2, 2020.
  31. ↑ Areddy, James T. (January 6, 2025). "Pentagon Labels More Chinese Companies as Military in Nature" . The Wall Street Journal . Retrieved 2025-01-08.
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  33. ↑ "COSCO Group Listed Companies". Archived from the original on 2015-02-17. Retrieved 2022-01-01.
  34. ↑ "China COSCO returns to profit, avoids delisting risk | Reuters". Reuters . 27 March 2014. Archived from the original on 2015-09-24. Retrieved 2017-06-30.
  35. ↑ "Major and Connected Transactions" (PDF). Hkexnews.hk. Retrieved 2016-04-30.
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