December 11th, 2015
CSCL and COSCON will restructure and integrate in order to reshape China's shipping industry and become one of the top four container shipping giants in the world. We will combine our quality resources to achieve synergies and provide better service.
On December 11th, China Shipping Container Lines (CSCL), China Shipping Development (CSD), China COSCO, and COSCO Pacific announced plans to restructure key assets, kicking off the SOE reforms in China's shipping industry. The restructuring and consolidation will create one the world's four largest container lines companies, with a fleet of 288 container ships, including 84 ships with a shipping capacity of more than 8,000 TEUs, and total shipping capacity of approximately 1.6 million TEUs. This integration will help us combine our quality resources to achieve synergies and provide better customer service.
CSCL will achieve business transformation by leasing ships and container boxes; acquiring the leasing business held by COSCO and China Shipping; and injecting other ship financing business and assets. COSCO Container Lines (COSCON), a subsidiary of COSCO, will rent CSCL's assets, including ships and container boxes etc, and divest the bulk shipping business, COSCO Pacific will buy the port assets of China Shipping and CSCL in order to integrate container shipping and port businesses.
As the leading companies in China's shipping industry, CSCL and COSCON have cooperated with each other for years. We will greatly improve the new company’s core competence after the restructuring and consolidation. For our investors, the integration of quality resources and capture of the synergies can bring better investment return; for our customers, expanded shipping capacity and widened scope of the business will optimize the route network, and improve the fleet structure, thus enhance our ability to deliver higherquality customer services and meet more rigorous service standards; for our suppliers, it provides a better platform with even more cooperation opportunities. The restructuring and consolidation will also offer our employees more diversified career development opportunities.
CSCL and COSCON expect to start the business integration by beginning of next year. We will take a phased approach on the integration of customers and routes, to ensure smooth transition and stable service delivery.
If you have any questions about the restructuring and consolidation of CSCL and COSCON, please email us at firstname.lastname@example.org.
China Shipping Container Lines Co., Ltd