Cosco Shipping Energy Transportation is consolidating its parent company’s chemical product supply chain assets to enhance its position in the global chemical logistics market.
The newly established Dalian Cosco Shipping Energy Transportation Supply Chain Company will merge Cosco Shipping’s transportation, warehousing, and logistics assets for LPG and chemical products.
“The asset consolidation will enhance the company’s service capabilities in the chemical and energy logistics sectors and optimize overall business performance,” Cosco Shipping Energy Transportation stated in a recent announcement.
The new company plans to enter into share acquisition and asset purchase agreements with Shanghai Cosco Shipping and Cosco Shipping Dalian Investment to secure a 70% equity stake in Shenzhen Cosco Longpeng LPG Shipping, which operates six LPG vessels.
Additionally, it will acquire an 87% stake in Hainan Zhaogang Shipping, which specializes in LPG shipping; a 15% equity interest in Dalian Xizhongdao Zhonglian Port Company; two LPG vessels; and a 100% stake in both Shanghai Cosco Shipping and Cosco Shipping Chemical Carrier, as well as Cosco Shipping (Hong Kong).
With these acquisitions, the company will operate a fleet of 14 LPG carriers, including two currently under construction, along with 10 chemical tankers.
