Expect Asia’s top containerline to make plenty of bold moves in the market in the coming 12 months now that financing has been fixed on a mammoth scale. China Cosco Shipping Corporation (Coscocs), the new container shipping conglomerate formed by the merger of Cosco Container Lines and China Shipping Container Lines, has signed a RMB120bn ($18bn) strategic cooperation agreement with the intention to finance more than 50 vessels as well as look at overseas acquisitions.
According to the agreement, China Exim Bank will provide financing to support the group’s mergers and acquisition costs, overseas investment and fleet optimisation. The financing scheme will also support China’s domestic shipbuilding industry to promote industrial restructuring and upgrading.
“The doldrums in the international shipping market has brought pressure to us, but it also provides opportunities for us to acquire overseas assets to complete our global network,” said Xu Lirong, chairman of China Cosco Shipping.
Coscocs is the world’s fourth largest containerline with a 7.5% global market share and a fleet of 1.56m teu including ships on order, according to Alphaliner.
Source: Splash 24/7
Source: Splash 24/7