Cosco Shipping Energy Transportation is to consolidate its parent company’s chemical product supply chain assets, strengthening its position in global chemical logistics market, according to SeatradeMaritime.
The newly set up Dalian Cosco Shipping Energy Transportation Supply Chain Company will merge together Cosco Shipping’s LPG and chemical products’ transportation, warehouse and logistics assets for integrated operation.
“The asset consolidation will improve the company’s service ability in chemical and energy logistics sectors and optimize the overall business performance,” said Cosco Shipping Energy Transportation.
The new company will sign share acquisition and assets purchase agreements with Shanghai Cosco Shipping and Cosco Shipping Dalian Investment to acquire:
A 70% equity stake in Shenzhen Cosco Longpeng LPG Shipping which operates six LPG vessels
A 87% stake in Hainan Zhaogang Shipping which is engaged in LPG shipping
15% equity in Dalian Xizhongdao Zhonglian Port Company focused on port service
Two LPG vessels
A 100% stake of Shanghai Cosco Shipping in Cosco Shipping Chemical Carrier and COSCO Shipping (Hong Kong).
Upon the completion of the acquisition, the company will have a fleet of 14 LPG carriers including two are under construction and 10 chemical tankers.