Bloomberg citing Mr Li Shaode Chairman of China Shipping as saying that China Shipping Co the nation second largest container line is looking for acquisitions in areas including shipbuilding and port operations as the industry struggles with overcapacity and slowing economic growth.
He said that the company has formed a team that will seek opportunities to take over companies throughout the industrial chain for shipping. He added that “We will see if it’s the best time for deals given the current situation for the shipping industry.”
Mr Li said he expects the container shipping market will have more opportunities this year than oil tankers and dry bulk. The company’s container shipping unit plans to raise prices starting from April 1 following increases imposed by rivals.
He said that “We will focus on large oil tankers and container ships. Dry bulk carriers won’t see great opportunities in two to three years. He added that China Shipping has long term contracts of 10 to 15 years for its dry bulk vessels and also long term contracts for oil tankers.”
Mr Li said the company also doesn’t rule out the possibility of expanding its shipbuilding business. Such a move would depend on the market, adding that the order book for his company shipbuilding unit in Yangzhou is full until the end of 2013.
Mr Li also said that China Shipping had called on the Chinese government for supportive measures for the industry including policy changes that would allow shipping lines to pay taxes based on tonnage of shipping, instead of the current corporate income tax rate.
He said that Vale SA, the world second largest mining company, approached China Shipping about cooperation on the so-called Valemax very large ore carriers through its China agency and brokers. China Shipping turned down cooperating until Vale has Chinese approval for the ships.
He said that the company has formed a team that will seek opportunities to take over companies throughout the industrial chain for shipping. He added that “We will see if it’s the best time for deals given the current situation for the shipping industry.”
Mr Li said he expects the container shipping market will have more opportunities this year than oil tankers and dry bulk. The company’s container shipping unit plans to raise prices starting from April 1 following increases imposed by rivals.
He said that “We will focus on large oil tankers and container ships. Dry bulk carriers won’t see great opportunities in two to three years. He added that China Shipping has long term contracts of 10 to 15 years for its dry bulk vessels and also long term contracts for oil tankers.”
Mr Li said the company also doesn’t rule out the possibility of expanding its shipbuilding business. Such a move would depend on the market, adding that the order book for his company shipbuilding unit in Yangzhou is full until the end of 2013.
Mr Li also said that China Shipping had called on the Chinese government for supportive measures for the industry including policy changes that would allow shipping lines to pay taxes based on tonnage of shipping, instead of the current corporate income tax rate.
He said that Vale SA, the world second largest mining company, approached China Shipping about cooperation on the so-called Valemax very large ore carriers through its China agency and brokers. China Shipping turned down cooperating until Vale has Chinese approval for the ships.