Cosco Shipping Specialized Carriers has joined forces with SAIC Anji Logistics and Shanghai International Port Group’s SIPG Logistics to create a car carrier company.
In a regulatory filing, the Shanghai-listed company said the registered capital for the joint venture is CNY650m ($96m).
Cosco will have 42.5% ownership, SPIG Logistics 37.5% and SAIC Anji — the shipping arm of Chinese automaker SAIC Motor — 20%.
The filing said the joint venture will “effectively integrate the strength of each company and further strengthen Chinese automobile export and supply chain”.
The name of the new tie-up was not disclosed, but it will kick off operations by acquiring or chartering vessels that are controlled by Cosco Shipping, which currently owns five pure car carriers that were built between 1998 and 2011.
The joint venture will also order newbuildings, acquire secondhand vessels and charter ships to meet demand.
A car carrier expert said the outfit will focus on international trade.
“The Chinese automobile market is growing very quickly. The market forecasts China’s car export volume may reach 3m by end of this year, which will be a new record level,” the expert said.
“During the first half of this year, the export volume has already exceeded 1.4m.”
The China Association of Automobile Manufacturers reported that China’s exports doubled to a record 2.02m units in 2021 despite chip shortages and the pandemic. And domestic carmakers are stepping up efforts to expand their export volume and global presence.
This is Cosco Shipping’s second cooperation deal with SAIC Anji.
In February 2021, they teamed up to focus on coastal car carrier trade, with SAIC Anji as the major shareholder with a 65% stake.
