China Shipping Development Co and Shenergy Co yesterday launched a joint venture shipping company for coal transport.
Both sides will jointly inject 240 million yuan (US$35 million) in the joint venture, Shanghai Jiahe Shipping Co. China Shipping will own 51 percent and Shenergy will take the rest.
Each side will assign three members to form the board of directors of the new venture, and Shenergy will appoint the president while China Shipping will choose the vice president.
The venture hopes to secure 100,000 deadweight tons of capacity by the end of this year and to further expand in the coming years depending on market conditions. It is expected to meet up to 80 percent of the transport demand of Shenergy's power plants in four years.
Shenergy is the listed unit of Shenergy Group, the Shanghai-based state-owned enterprise which specializes in electricity and fuel output.
China Shipping Group Co has a transport capacity of 20 million dwt and it carried around 400 million tons of cargo last year.
