China formally established a new state-owned logistics group on Monday (Dec 6), state broadcaster CCTV reported on Monday, to strengthen domestic and global supply chains amid widespread disruptions caused by the pandemic.
China Logistics Group aimed to become a “global supply chain organiser” by developing international trade links and freight services, as well as cross-border e-commerce, CCTV said.
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, CCTV said.
The newly-formed group will also include as strategic investors the parent firms of China Eastern Airlines, COSCO Shipping, and China Merchants Group, who will respectively hold share percentages of 10 per cent, 7.3 per cent, and 4.9 per cent.
The merger comes at a time when the pandemic continues to disrupt global supply chains, especially in Chinese ports, where even one positive COVID-19 case can result in operations being suspended.
The new state-owned logistics giant currently covers 30 Chinese provinces, has a presence in five continents, and operates 3 million vehicles, CCTV said.
Reuters (Reporting by Eduardo Baptista, Editing by Richard Pullin & Simon Cameron-Moore)
Source: www.channelnewsasia.com
