China will form a new state-owned logistics group aiming to be a global supply chain developer, improving the nation’s international trade links.
State media CCTV reported on 6 December that the new company was formed through a merger of China Railway Materials, China National Materials Storage and Transportation Group, Huamao International Freight Limited Company Shenzhen Branch, China Logistics, and China National Packaging Corporation.
Strategic investors include China Eastern Airlines, COSCO Shipping, and China Merchants Group, who will respectively hold shares of 10%, 7.3%, and 4.9%.
China’s State-owned Assets Supervision and Administration Commission (SASAC) and China Chengtong Holdings Group will evenly split the remaining shares. Chengtong Holding is centrally managed by SASAC, giving the state asset regulator control over all the remaining shares.
The new state-owned logistics giant currently covers 30 Chinese provinces, has a presence in five continents, and operates 3 million vehicles, CCTV said.
China is the latest in a recent spate of global investments in integrated supply chains: earlier in December PSA International Pte Ltd (PSA) announced it will acquire Philadelphia-based BDP International to improve end-to-end management of supply chains.