Asia/Pacific News
COSCO International Eyes Ship Leasing
COSCO International Holdings Limited [HKG:0517] (Cosco International) is considering entering the ship leasing market, South China Morning Post reports.
Cosco International, an offshoot of Chinese shipping giant China Ocean Shipping (Group) Company (COSCO) focused on marine fuel, paints, and ship trading, could lease newly ordered ships or vessels that were built but never delivered.
But the proposal is "still at the study stage," according to one source.
The company may expand its ship trading operation beyond the sale and purchase of COSCO vessels into the leasing of vessel to commodity firms and traders, and the parent company's existing charter activities, now done by several offices, could be brought together under the Cosco International umbrella.
The company is also scheduled to complete a marine paint factory in Qingdao, China by the end of March, which will produce up ot 67,500 tonnes of coatings a year, and to begin construction of a Shanghai facility making paint for shipping containers in October.
One source said the company is also interested in expanding its marine fuels business, possibly by acquiring COSCO's half stake in China Marine Bunker (PetroChina).
Cosco International Managing Director Xu Zhengjun says the group has been looking for acquisition targets to expand its purchasing and shipping businesses, according to an item posted on Businessweek.com.
