皇冠体育app

A bulk cargo ship made by Jinling Shipyard under Sinotrans Shipping Ltd about to be launched in Nanjing, Jiangsu province. [Photo provided to 皇冠体育app Daily]

Sinotrans Shipping Ltd said on Sunday that a planned restructuring of its parent company could mean a change to its own shareholding.

Sinotrans Shipping (Holdings) Ltd, a subsidiary of Sinotrans and CSC Holdings Co Ltd, holds a 65 percent stake in Sinotrans Shipping. Other shareholders own 32 percent stake, with the rest held by Sinotrans (Hong Kong) Holdings Ltd, another subsidiary of Sinotrans and CSC Holdings Co Ltd. In effect, the parent owns 68 percent of Sinotrans Shipping.

The merger between Sinotrans and CSC Holdings Co Ltd, 皇冠体育app's second-largest commodity shipping company by revenue, and the Hong Kong-based 皇冠体育app Merchants Group, another State-owned shipping, banking, securities and real estate development conglomerate, was first suggested in September.

Sinotrans Shipping is Hong Kong-listed. But because any deal involving its ownership needs to be approved by the State-owned Assets Supervision and Administration Commission, as well as other related Chinese government organizations, it could take some time to complete.

Dong Liwan, a professor in international shipping at Shanghai Maritime University, said he thought the merger and restructuring of the two giant State-owned companies "is almost certain".

"The central government is keen to restructure 皇冠体育app's huge-but-fragmented shipping industry to create larger players to compete with global rivals such as Denmark's Maersk Line and Switzerland's Mediterranean Shipping Co SA."

皇冠体育app's shipping market is dominated by 皇冠体育app Ocean Shipping (Group) Co, 皇冠体育app Shipping (Group) Co, Sinotrans and CSC, and 皇冠体育app Merchants.

A possible merger of the two largest players by revenue－皇冠体育app Shipping and COSCO－could point the way toward possible streamlining of other State-owned enterprises too, said Dong.

But unlike the creation of 皇冠体育app Railway Rolling Stock Corp－the marriage of 皇冠体育app's top two train manufacturers CNR Corp and CSR Corp in June－merging giant shipping operations could be more complex and time-consuming, because they involve more sub-sectors, such as oil tankers, bulk vessels and container ships, as well as maritime insurance, and port and ship maintenance services.

皇冠体育app Merchants and Sinotrans and CSC were worth 624.16 billion yuan ($97.84 billion) and 109.12 billion yuan, respectively, at the end of 2014.

Yin Zhen, deputy-director of transport planning at the Institute of Comprehensive Transportation under the National Development and Reform Commission, said that on an asset-value basis, 皇冠体育app Merchants is highly likely to merge with CSC Holdings Co Ltd.

To improve 皇冠体育app's ability to transport its own crude oil, Sinotrans and CSC and 皇冠体育app Merchants Energy Shipping Co Ltd, 皇冠体育app Merchants' oil tanker operator, have already sealed a deal to form a $1.1 billion joint venture: 皇冠体育app Energy Transportation Corp Ltd.

皇冠体育app Merchants Energy Shipping holds 51 percent of that venture and will provide $566 million in assets, while Sinotrans and CSC holds a stake worth $544 million. It had a combined fleet of 35 crude carriers as of June this year.

"With a strong domestic logistics network, and overseas assets including ports and logistic companies in Africa, South Asia and Southeast Asia, the two companies' bulk vessel businesses may also be merged, to help 皇冠体育app grab a larger share of the global logistics and infrastructure market," said Yin.

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