COSCO restructures to create world’s largest oil and LNG tanker fleet

COSCO restructures: China’s COSCO  shipping company  this week merged China Shipping Development Co and the  COSCO Dalian Ocean Shipping Company into  COSCO Shipping Energy Transportation to create the  world’s largest oil tanker fleet in terms of  both ship numbers  and deadweight tonnage. The new company brings together a total of 105 oil tankers, including nine LNG carriers and a deadweight tonnage of 17.04 million as COSOCO seeks to leverage its  economies of scale and operational synergies to compete more effectively in the global market.
“This move is part of an ongoing restructuring of [China’s] State-owned enterprises,” COSCO Shipping Chairman Xu Lirong said at the new company’s launch in Singapore.”The group will use this new setup to strengthen its capabilities in shipping oil, gas and other energy resources to ensure China’s energy security.” The new company is also investing in the construction of a further 25 LNG carriers.
The new structure  would give COSCO  a more diversified operation model that could  take full advantage of the opportunities likely to come from the Belt and Road Initiative and the development of the Yangtze River Economic Belt, the deputy director-general of the waterborne transport bureau at the Ministry of Transport Wang Mingzhi added.

Source: chinadaily