China introduces new state logistics giant

The State Asset Supervision and Administrative Commission (SASAC) and China Chengtong Holdings Group each hold 38.9% of the shares in 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 established group, merges the China Railway Material Group and four units of the 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 managed company regulated by SASAC, and one more step for China to continuously reform its state-owned enterprises.

Li Hongfeng, former president of China Chengtong Holdings Group has been appointed chairman of China Logistics Group, while Liao Jiasheng, former President of China Railway Material Group has been appointed General Manager.

The establishment of the new logistics group is an integration for state actors in the logistics industry, and a major measure and practical action to promote China’s high-quality developments logistics industry.

The China Logistics Group currently has over 600 branches, Cover 30 provinces, Cities and districts inland and on five continents, with clear competitive advantages on the international logistics market.

For the 14thNS Five year period, The China Logistics Group will act as an integrated logistics solution provider and global supply chain organizer.

The starting shot for the new logistics group comes at a time when global supplies are under unprecedented stress due to the Covid-19 pandemic. Both large global shipping companies and port terminal operators focus their investments on the areas of logistics and supply chain.

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