China Shipping Container Lines will be renamed Cosco Shipping Development as the carrier transforms from a liner operator to an integrated financial services platform with a leasing business under the newly merged China Cosco Shipping.
The name change is consistent with the company’s future strategic positioning, business characteristics, and identity as a group member of China COSCO Shipping Corporation Limited, the Hong Kong-listed company said in a filing to the exchange.
Its activities under the financial services platform will include vessel leasing, container leasing, and non-shipping leasing as the core business with shipping financing also offered.
COSCO Shipping Development will however still continue to be listed on the Hong Kong Exchange, even with the complete change in its business focus. “Save for the change of stock short name to be announced by the company, the trading arrangements for the H shares of the company on the Stock Exchange of Hong Kong will not be affected,” the filing noted.
Under the new China Cosco Shipping, the container transport business of CSCL is being shifted to China COSCO Shipping that will see the combined fleets amount to 1.58 million TEUs, places it in fourth place among the world’s leading container carriers.
The newly formed company aims to become the third-largest global container line by boosting its fleet by at least 50,000 twenty-foot containers to more than 2 million TEUs by the end of 2018. China Cosco Shipping recently signed up with the Ocean Alliance, joining CMA CGM, Evergreen Line and OOCL to offer more than 40 global services connecting markets in Asia, Europe and the U.S. The company is looking to seize market shares from its European rivals by upsizing its fleet and expanding outside its core Asia, Africa, China and Southeast Asia coverage specialties into the oversupplied Asia-Europe and trans-Pacific trades.