China has formally established a new state-owned logistics group on 6 December, according to China Central Television (CCTV), a Chinese state-owned broadcaster, aiming to strengthen domestic and global supply chains.
CCTV reports that 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.
The new logistics group was created by the 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.
The newly-formed company 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%, 7.3%, and 4.9%. The remaining shares will be evenly splitted to China's State-owned Assets Supervision and Administration Commission (SASAC) and China Chengtong Holdings Group.
Chengtong Holding is centrally-managed by SASAC, giving the state asset regulator control over all the remaining shares, according to the report.
The new state-owned logistics giant currently covers 30 Chinese provinces, has a presence in five continents, and operates 3 million vehicles, said CCTV.