On November 15, Dalian COSCO Shipping Energy Supply Chain Co. Ltd. was inaugurated. At the ceremony, Dalian Municipal Government, Changxing Island Administrative Committee, and related business partners, signed investment or business cooperation agreements with the new company respectively around LPG fleet development and hydrogen-based new energy business.
In mid-October this year, COSCO SHIPPING Energy Transportation issued a latest notice announcing that it would acquire the equity and assets of a number of affiliated companies through its wholly-owned subsidiary, to further integrate the chemical logistics supply chain of its controlling shareholder, COSCO Shipping Group. The transaction, totaling approximately RMB 1.261 billion, marks COSCO SHIPPING Energy Transportation’s strategic expansion in the transportation of hazardous chemicals and liquefied petroleum gas (LPG).
The assets and equity involved in this acquisition include chemical and liquefied gas transportation companies and vessels, indicating that COSCO SHIPPING Energy Transportation is gradually expanding its business structure from traditional oil and gas transportation to chemical transportation and hazardous chemical storage.
Through merger, acquisition and integration, COSCO SHIPPING Energy Transportation will add 4 controlling subsidiaries, i.e. Shenzhen Coscolpg SHIPPING, Hainan Zhaogang Shipping, China Shipping Chemical Carrier and COSCO SHIPPING (Hong Kong), further expanding its business scope in the energy and chemicals logistics market.
As the indirect controlling shareholder of COSCO SHIPPING Energy Transportation, COSCO SHIPPING Group has been deeply involved in the field of hazardous chemicals and LPG transportation for a long time, and owns 14 LPG carriers (including 2 under construction) and 10 chemical tankers (including 3 time-chartered). After the completion of this transaction, COSCO SHIPPING Energy Transportation will make full use of the resources and experience of COSCO SHIPPING Group and enhance economies of scale and synergy by integrating the chemical transportation supply chain resources within the group.
Dalian COSCO Shipping Energy Supply Chain Co., Ltd. is mainly engaged in the transportation of LPG and other gaseous chemicals as well as the comprehensive logistics of hydrogen-based green energy.
The company will be committed to building the “first in China and leading in the world” LPG transportation fleet, with the mission of “building a hydrogen-based green energy land and sea channel in Northeast China”, and building a comprehensive logistics integrated supply chain of chemical and new energy covering the whole chain of land transportation, warehousing, terminals and marine transportation in Dalian Changxing Island (Xizhong Island), and strive to enhance the resilience and safety level of the industrial chain and supply chain, so as to build an industrial “supply chain” and create a “win-win chain” of cooperation.
The integration of COSCO SHIPPING Energy Transportation is not only an optimization of the internal resources of the controlling shareholder COSCO SHIPPING Group, but also marks an important step for the company to participate in the international competition in the hazardous chemicals logistics market. As the restructuring trend of foreign chemical logistics companies becomes more and more obvious, COSCO SHIPPING Energy Transportation has not only strengthened its dominant position in the domestic market through mergers and acquisitions, but also laid a solid foundation for its expansion in the global market.