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COSCO Shipping rides the BRI wave to success

2019-06-11 10:17:36 China Daily

A the development of China''s economy and the nation''s ongoing efforts in opening up, COSCO Shipping is not content with its own development.

Dry bulk carriers are yellow, container ships are green, oil tankers are painted red, blue ones are multipurpose vessels, and those bearing pink spots are passengers liners.

No, these are not puzzles or a fantasy game. Rather, these are the color codes that come up on a giant screen at the China COSCO Shipping Corp Ltd headquarters on the east side of the Bund in Shanghai, which enables efficient tracking of the company's huge fleet.

COSCO Shipping, which has the largest shipping capacity in the world and the third largest number of container vessels, used to be two independent companies with huge deficits three years ago. All of that changed after the two entities were merged in 2016.

Since then, the company has seen steady progress and growth in its operations, which Xu Lirong, the chairman of COSCO Shipping, attributes to the group's industrial restructure optimization.

Right after its establishment in 2016, COSCO Shipping created an industry cluster development strategy, which is based on shipping, logistics, shipping finance, equipment manufacturing, shipping services, social services, internet and related business with the aid of the internet.

In addition, the group deepened restructuring in its 19 key areas including its headquarters, container shipping, shipping finance, energy transportation, bulk cargo, terminals, logistics, heavy industry, overseas divisions and networks.

"The restructuring has elevated COSCO Shipping's efficiency and boosted the group's further development," said Xu.

The shipping industry is highly correlated with the development of international economy and trade. "Currently, more than 85 percent of the world's trade is completed by shipping," said Xu.

Amid the development of China's economy and the nation's ongoing efforts in opening up, COSCO Shipping is not content with its own development.

In July 2018, COSCO Shipping made another giant stride by acquiring Hong Kong-based Orient Overseas Container Line, the shipping unit of Orient Overseas International Line, jointly with Shanghai International Port Group, for $6.3 billion.