Chinese state-run shipping conglomerate Cosco is going to take control of Hainan Harbor and Shipping Holding as part of the government’s plan to restructure shipping and port assets in Hainan province.
Hainan Harbor and Shipping Holding is the operator of three ports in Hainan – the island in the far south of the world’s most populous nation – and also the controlling shareholder of Hainan Strait Shipping, a roro ship operator.
Hainan Harbor and Shipping Holding has received a restructuring plan from the Hainan government, under which the government decided to transfer 45% equity shares in Hainan Harbor and Shipping Holding to Cosco.
Following the completion of the deal, the government still owns 55% equity shares in the company but Cosco will become the operational controller of Hainan Harbor and Shipping Holding.
According to Hainan Strait Shipping, the potential share transfer deal is part of the government’s plan to integrate port and shipping assets in the province and promote the free trade zone development.
Hainan Strait Shipping currently operates a fleet of 18 passenger roro ships between destinations in the Hainan Strait.
An official deal for the share transfer has yet to be signed.