Shanghai Junzheng Logistics, or Gentco Logistics, will be keeping the "SC" on the hull of its chemical carriers, but the prefix will no longer stand for Sinochem.
With the formal completion of the $2bn takeover of former Sinochem International Logistics, there could be more of those hulls soon.
Coal and chemical refining billionaire Du Jiangtao visited Shanghai this week for his new company's opening ceremony at the InterContinental Shanghai Expo Hotel.
The event marked the end of a stormy two-year process, during which Du's Inner Mongolia Junzheng Energy & Chemical Group Co acquired the chemical carrier, container, and tank terminal assets and operations of state-owned Sinochem International Corp.
Besides using the Junzheng name in Chinese, the company will use the English quasi-translation Gentco Logistics for the entire suite of operations. The shipowning unit will be called SC Shipping Co in English.
Gentco Logistics will be headed by general manager Song Wei and deputy general manager Zhang Xin, who is also head of shipping at SC Shipping Co.
Song and Zhang held corresponding titles at Sinochem International Logistics.
'Safety and care'
Song said Junzheng will study the conditions for developing the company's container fleet, currently numbering about 25,000 tank containers and 1,000 gas containers.
"We have the plan to expand in both, but we can't say how soon," she said.
On the shipowning side, Zhang said the letters SC, in addition to preserving the continuity of the former Sinochem brand, will now stand for "safety and care".
The company controls about 85 chemical carriers of up to 40,000 dwt each, of which about 30 are chartered in. But under its new ownership, it intends to make investments immediately.
TradeWinds has previously reported that the reborn company is adding two more units to a two-ship order for 7,000-dwt domestic vessels at Wuchang Shipbuilding Industry in Wuhan.
However, now that the takeover and rebranding are complete, officials can reveal more about the newbuilding plans.
"We are planning to expand our business in general, and in shipping we plan to build six to eight small domestic chemical carriers and replace four to six internationally trading coated chemical carriers with larger ships with stainless-steel tanks," Zhang said.
The domestic vessels will be in the 3,000-dwt to 4,000-dwt range. The international ships to be disposed of are coated vessels of about 13,000 dwt, and their replacements would be J-19 class ships of 19,000 dwt built in Chinese yards.
The company is most likely to take the newbuilding route. First deliveries would probably be ready about 24 months after an order is placed, with sister vessels coming soon after.
"If we want to be quick, we could buy ships on the secondhand market, but for efficiency we would order a series of new design ships," Zhang said.
Few sales candidates
Other colleagues point out that after BW Group's sale of its chemical tanker fleet to Eastern Pacific Shipping in January, there are few suitable sales candidates of about 19,000 dwt.
Junzheng is considering a number of Chinese newbuilding yards, not least Jiangsu Hantong, which has built eight chemical parcel tankers of 38,000 dwt for Sinochem International Logistics.
"Hantong has proved they can build advanced chemical carriers, but we don't want to limit our choices," Zhang said.
Company officials acknowledged that the 13,000-dwt sales candidates will be facing a historically low market, but believe the renewal is necessary.
