On June 9, COSCO SHIPPING signed an equity transfer agreement with Shanghai Tongsheng Investment (Group) Co., Ltd. (hereinafter referred to as “Tongsheng Investment” or “Tongsheng Group”). According to the agreement, Tongsheng Investment will transfer to COSCO SHIPPING its shares worth RMB 3.476 billion in the Shanghai International Port (Group) Co., Ltd. After the transfer, COSCO SHIPPING will hold a 15% stake in Shanghai International Port. Mr. Ying Yong, Deputy Secretary of the CPC Shanghai Municipal Committee and Mayor of Shanghai, Mr. Zhou Bo, a member of the Standing Committee of the CPC Shanghai Municipal Committee and Executive Vice Mayor of Shanghai, and COSCO SHIPPING leadership including Chairman of the Board Capt. Xu Lirong, Chief Financial Officer Sun Yueyin, and Vice President Ye Weilong witnessed the signing of the agreement. Mr. Wan Min, Director of the Board and President of COSCO SHIPPING and Mr. Chen Xuyuan, Chairman of Shanghai International Port and Executive Director of Tongsheng Group signed the agreement on behalf of the two sides.
The conclusion of this agreement was meant to strengthen the strategic cooperation between COSCO SHIPPING and Shanghai International Port. In order to implement the Belt and Road Initiative and sharpen the competitiveness of its shipping and terminal businesses, COSCO SHIPPING has been committed to establishing strategic partnerships with outstanding port companies. The Port of Shanghai serves as a key node in river-ocean multimodal transport connecting the 21st Century Maritime Silk Road and the Yangtze River Economic Belt. After this deal is closed, COSCO SHIPPING will build capital links with Shanghai International Port. On the one hand, the Group will improve its terminal operation ability through resource and experience sharing. On the other hand, it will carry out comprehensive business cooperation with Shanghai International Port to achieve complementary advantages, reinforce their international competitiveness, and build safer, easier and more efficient logistics routes, which will ultimately facilitate China’s foreign trade and stabilize its economic growth. In addition, it provides a major opportunity for Shanghai to leverage domestic and overseas market resources and intensify interactive development both at home and abroad while boosting the institutional innovation of the China (Shanghai) Pilot Free Trade Zone and the building of the Shanghai international shipping center.