Chinese media has reported the founding of a state-owned logistics group which aims to strengthen supply chains amid pandemic disruption.
The new company, China Logistics Group, was formed through a merger with 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 merger follows global supply chain disruption which has constrained operations particularly at Chinese ports where just one Covid-19 case can result in business suspension.
Strategic investors and parent firms of China Eastern Airlines, COSCO Shipping and China Merchants Group will respectively hold share percentages of 10 per cent, 7.3 per cent and 4.9 per cent in the newly-formed group.
China’s State-owned Assets Supervision and Administration Commission (SASAC) and China Chengtong Holdings Group will evenly split the remaining shares. Chengtong Holding is centrally-managed by SASAC, giving the state asset regulator control over all the remaining shares.
China Logistics Group is reported to cover 30 Chinese provinces, has a presence in five continents and operates three million vehicles.