The State-owned Assets Supervision and Administration Commission (SASAC) and China Chengtong Holdings Group each hold 38.9% shares of the new company, the three strategic investors, China Eastern Airlines, Cosco Shipping and China Merchants Group, hold 10%, 7.3% and 4.9% of the shares, respectively.
The newly-formed group, merged from China Railway Material Group and four units of China Chengtong Holdings Group, including China Material Storage and Transport Company, CTS International Logistics Corporation, China Logistics Company and China Packaging Corporation, is a diversified centrally administered enterprise under the supervision of SASAC, and another move for China to continually reform the state-owned enterprises.
Li Hongfeng, former president of China Chengtong Holdings Group was named as the chairman of China Logistics Group, while Liao Jiasheng, former president of China Railway Material Group was appointed as the general manager.
The establishment of the new logistics group is an integration for state-owned logistics industry players, and a significant measure and practical action to promote high quality development of China’s logistics industry.
China Logistics Group currently has over 600 branches, covering 30 provinces, cities and districts domestically and five continents, having distinct competitive advantages in international logistics market.
For the 14th Five Year period, China Logistics Group will serve as an integrated logistics solution provider and a global supply chain organiser.
The launch of the new logistics group comes at a time when global supply are under unprecedented stress as result of the Covid-19 pandemic. Both major global shipping companies and port terminal operators are focusing investments on the logistics and supply chain sectors.
Copyright © 2022. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.