China COSCO Launches New Company and Creates Largest Oil Tanker Fleet
One of the largest shipping company by fleet size, China COSCO Shipping Co. has officially launched the COSCO Shipping Energy Transportation Co. and created the world’s largest oil tanker fleet in terms of ship number ans dead weight tonnage. A total of 105 oil tankers, with nine liquefied natural gas carriers and a dead weight tonnage of 17.04 million, the company has the biggest fleet of oil tankers and the largest transport capacity.
Asset value for the COSCO Shipping Energy Transportation account for 11 percent of the company’s total asset and the oil tanker fleet is 20 percent of the entire shipping capacity. COSCO Shipping chairman Xu Lirong stated that the creation of the new company is practical way of achieving a business scale and synergies especially in the sectors of energy shipping ans logistics to better compete with other established global rivals. The move is also part of the ongoing restructuring of State owned enterprises.
The new setup will strengthen the capabilities of the company in shipping oil, gas and other energy resources that will ensure energy security in China. COSCO Shipping Energy Transportation is also investing in 25 liquefied natural gas carriers and has more than 200 large domestic and overseas business partners in the oil and gas sectors such as Royal Dutch Shell Group and China National Offshore Oil Corp. the new steps that COSCO Shipping is taking will transform the business into a more diversified program that can take full advantage of the opportunities that will come from the Belt and Road Initiative and the development of the Yangtze River Economic Belt. Not only the company will improve the country’s ability in ensuring energy, economic and transportation security and will also play a key role in demonstrating the reform is the fundamental way for SOEs to prosper.