China Shipping (Group) Company (abbr. China Shipping) was established on July 1, 1997, whose headquarter was located in Shanghai.

China Shipping is one of the key state-owned enterprises under the direct administration of the Central Government and is a super-large shipping conglomerate that mainly operates shipping across different regions, fields, countries and ownership.

The main service of China Shipping is container, tanker, freight, passenger transport, car carrier and special transportation; it will offer LNG service at once. Its related services are terminal operation, integrated logistics, shipping agency, universal airfreight, ship building, the crew management, container manufacture, supply and trading, finance and investment, and information technology.

China Shipping has all kinds of ships of more than 470, 24 million tons carrying capacity and 500 thousand containers; every year it can carries goods more than 400 million tons and 10 million containers which supplies support and guarantee for state energy and import and export trade.

China Shipping sticks to scientific development and the establishment of one-hundred-year Chinese ocean; it persists in enlarging shipping as a main industry and the strategy of developing related industries; the twelfth five-year plan of China Shipping is to be a state-owned backbone enterprise with a relatively high international competitiveness and a word-class level of shipping enterprise.

The Development and Evolution of China Shipping (Group) Company

On July 1, 1997, China Shipping (Group) Company (hereinafter referred to as the Group) was established, whose headquarter is located in Shanghai, based on the five enterprises under the direct administration of Ministry of Communications including Shanghai Shipping (Group) Company, Guangzhou Maritime Transport (Group) Co., Ltd., Dalian Maritime (Group) Company, China Marine and Seamen Service Corporation and Zhongjiao Marine Co., Ltd.

After the establishment of this group, it persists in scientific development, holds historic opportunity, reforms, innovation, and advancing with the times to realize great-leap-forward development.

I. Implementing reform and innovation actively

When it was established, its total asset was 25.1 billion Yuan; its asset-liability ratio was 59.92%; total revenue was 6.7 billion Yuan; total capacity was 7.5 million tons; traffic volume was 144 million tons; deficit was 190 million Yuan. According to international and domestic shipping market, it made a developmental strategy which was to emphasize on coastal regions, explore sea service, focus on one field and explore multi-field market. Under the direction of this strategy the group was reformed and recognized to achieve professional reorganization.

Within one year and a half it established many professional companies including container transport, shipping, tanker transport, freight, passenger transport, international trade, forwarder, industry and investment to basically achieve professional reorganization with benefits as the center, reasonable structure, and a complementary advantages management pattern.

II. Persisting in enlarging and enhancing shipping mainly

On August 28, 1997 China Shipping Container Lines Co., Ltd. was established (hereinafter referred to as CSCL). With a thin foundation it developed container transport through rebuilding ships, hiring ships and building ships on a large scale against cycles. In 2004 CSCL H-share went public in Hong Kong, and in 2007 in Shanghai A-share. Recently the group has more than150 ships and 500 thousand containers whose total volume is above 10 million TEU.

It developed its main shipping services including tanker transport, freight, special transport, passenger transport and automobile roll-on-roll-off shipping. The domestic traffic volume of oil tanker fleet takes up more than 80% of domestic offshore oil traffic volume; dry bulk cargo is the biggest coastal dry bulk fleet in China; passenger liner fleet predominate the Bohai Bay passenger transport market all the time.

III. Developing the related industry on land harmoniously

With the development of its transport industry, CSCL emphasizes on the harmonious development of industry on land, has built many professional companies on many professional fields including ship repair, logistics and dock, etc. At present it has a bigger dock industry which has shares in 12 Chinese docks with a container throughput of 13.7 million containers per year and joint venture docks in Los Angeles and Seattle. It pays great attention to ship building industry. In 1998 China Shipping Industry Co., LTD (CIC) was established, which then predominates Chinese ship building industry all the time. In 2007 it built the biggest repairing floating dock named China Shipping Mount Ermei, which was located in ship building base of China Shipping Changxin. On December 28, 2008 the first dry bulk cargo, China Shipping Changyun 1,was built totally by Jiangsu ship building base of China Shipping Industry which marked the a historic step of ship building in China and resulted in the milestone that it built a ship with 1 million tons carrying capacity in 2010.

IV. Implementing the strategy of going global, establishing and perfecting global business network

The Hong Kong holding was established on March 6, 1998 which was an important step to go oversea. With the development of oversea service especially container global shipping line, the European Holding, North America Holding, Southeast Asia Holding and West Asia Holding were established successively in 1999. Its oversea network includes 86 countries and regions in five continents with more than 90 companies and representatives, and more than 300 marketing network, which, therefore, has high global operation ability.

V. Achieving a greater overall strength and profit ability

As of the end of 2010 its total assets was 143 billion which increased by 470%; its asset-liability ratio was 42% which decreased by 18%; earnings grew by more than 10 times. In 2004 it was titled as The Model of State-owned Enterprise Reform by the Propaganda Department of the Central Committee of the CPC and State-owned Assets Supervision and Administration Commission. In 2007 it was awarded Outstanding Achievement Enterprise Title during 2004-2006 by State-owned Assets Supervision and Administration Commission. In 2010 it was titled as the Management Progress Award during the 2007-2009 appraisal by State-owned Assets Supervision and Administration Commission. In April 2010 it was listed in the 15 state-owned enterprises by State-owned Assets Supervision and Administration Commission and the Propaganda Department of the Central Committee of the CPC which would be reported especially, and the main media of central government reported the achievement of China Shipping economic development and transition in details.

VI. To achieve new Three Changes through Five Transformations

In the beginning of the twelfth five-year plan, China Shipping will persist in scientific development, the developmental goal of being world class, and implement the “five transformations” (including the transformation of development mode, industrial structure, management mode, team construction and competitive mode) to achieve three changes, from shipping industrial winner to industry leader, from economic growth to economic development and from the only standard “speed” to comprehensively harmonious development. At last it will become one of the 30-50 large-scale international enterprises with high profits and international competitiveness.