Sinotrans-CTS merger would create firm second to Cosco in size
China's Sinotrans has set its sights on merging with transportation firm China Yangtze (Changjiang) Transportation (CSC).
According to a statement to investors, parent company the Sinotrans Group said that an understanding had been reached with CSC on a merger and reorganisation plan.
A merger of CSC and Sinotrans would form the second largest shipping organisation in China after Cosco. However, Sinotrans is required to first seek approval from the Central Government's State Council State Assets Committee for the proposed merger, reports UK Transport Intelligence.
CSC's large shipping division focuses on the international trade in oil, containers and bulk. It also offers logistics services related to its shipping operations. It has a strong presence in the Yangtze River Delta, which is regarded as especially important, given the Chinese government's policy to develop the economy of the area.
Sinotrans revenue from its main businesses in 2007 totalled CNY57.66 billion (US$8.44 billion) and the group is targeting a revenue of CNY80-100 billion in 2010.
According to a statement to investors, parent company the Sinotrans Group said that an understanding had been reached with CSC on a merger and reorganisation plan.
A merger of CSC and Sinotrans would form the second largest shipping organisation in China after Cosco. However, Sinotrans is required to first seek approval from the Central Government's State Council State Assets Committee for the proposed merger, reports UK Transport Intelligence.
CSC's large shipping division focuses on the international trade in oil, containers and bulk. It also offers logistics services related to its shipping operations. It has a strong presence in the Yangtze River Delta, which is regarded as especially important, given the Chinese government's policy to develop the economy of the area.
Sinotrans revenue from its main businesses in 2007 totalled CNY57.66 billion (US$8.44 billion) and the group is targeting a revenue of CNY80-100 billion in 2010.