Cosco Shipping, the Ministry of Transport Hainan Department, State-Owned Assets Supervision and Administration Commission Hainan Department, and The State Development and Investment Corporation, have signed Hainan Harbour and Shipping Holding share equity cooperation agreement, and Hainan port resources consolidation strategic cooperation agreement this weekend. A team was also formed for the asset restructuring.
Hainan Harbour and Shipping Holding is the provincial platform of Hainan for port and shipping assets management. Cosco Shipping and Hainan province will develop equity co-operation through the company.
Last week, Hainan Harbuor and Shipping Holding announced a restructuring plan under which Hainan government will transfer 45% in share equity to Cosco Shipping. Upon the competition of the deal, the government will still own 55% share equities in Hainan Harbour and Shipping Holding but Cosco Shipping will become the operational controller of the company.
The cooperation is an important move for Hainan and Cosco Shipping to support the development of free trade zone in Hainan.
Xu Lirong, chairman of Cosco Shipping said that Cosco Shipping will co-operate with Hainan to further improve local port service capability, increase investment in shipping routes and fleet development.