China COSCO Shipping on Monday officially launched the consolidated COSCO Shipping Energy Transportation Co., creating one of the world’s largest tanker fleets.
China COSCO says the new fleet comprises of 105 vessels representing a total capacity of a little over 17 million DWT. The company is also investing heavily in the LNG transport sector, with nine LNG carriers and 25 planned.
The establishment of the new company is part of China’s on-going restructuring of State-owned enterprises and is a combination of former China Shipping Development Co. and COSCO Dalian Ocean Shipping Co. It comes as shipping markets across the globe struggle with overcapacity and low shipping rates.
In a statement about the launch, China COSCO Chairman Sun Jiakang said the establishment of the tanker giant is only the first step in its plan for building the energy transportation sector’s new market leader both at home in China and abroad.