COSCO SHIPPING Holdings Announces 2017 Annual Results Achieving Significant Improvement after Restructuring

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(Image Courtesy: www.cosco-usa.com)

COSCO Shipping Holdings announced its financial results for the twelve months ended December 31, 2017. According to the company, it actively seized opportunities brought about by the market pick-up and focused on growth by making relentless efforts to enhance its efficiency and promote innovation. The company achieved greater synergies by taking advantage of a number of internal and external positive factors to further deepen reform.

During the period, the company returned to profitability and made significant improvement in operation efficiency. Net profit attributable to the shareholders of the company reached RMB 2.66 billion (USD 317.26 million).

COSCO Shipping Lines, a wholly-owned subsidiary of the company, and COSCO Shipping Ports, a non-wholly owned subsidiary, achieved better operating results in 2017. COSCO Shipping Lines recorded higher business volume and freight rates with its shipping volume increasing by 23.7 per cent year-on-year to 20,913,746 TEUs.

Meanwhile, the total terminal throughput of COSCO Shipping Ports reached 100,202,185 TEUs, of which the total terminal throughput in overseas regions was 18,840,664 TEUs, representing a remarkable growth of 38.7 per cent year-on-year, a press release issued by the company stated.

As an important member of the OCEAN Alliance, COSCO SHIPPING Lines said that it is committed to higher frequency, larger scale, broader coverage and higher efficiency. In view of the changes in the landscape of global trade and economy, it made efforts to strengthen its business on the eastern and western major routes, enhanced its shipping capacity in emerging and regional markets and further optimised the layout of its shipping routes.

At the same time, it continued to enhance the global standard customer service process, strengthen its digitalized customer service capability and improve the convenience and efficiency of its services.

Its terminal network covers the top five coastal port clusters in China as well as Hong Kong, Taiwan, Southeast Asia, Europe, the Mediterranean, the Middle East and other regions in the world. In 2017, COSCO SHIPPING Ports operated 35 ports across the world and 179 container berths with a total annual capacity of 102,720,000 TEUs. It had a total of 86 berths in operation for bulk cargoes with a total annual capacity of 262,670,000 tons.

In 2017, COSCO SHIPPING Holdings made positive progress in the construction of the logistics channels along the Belt and Road. By consolidating its global shipping route networks, the Company not only enhanced its service frequency and efficiency along the 21st Century Maritime Silk Road, but also connected the shipping routes along the 21st Century Maritime Silk Road with other important emerging regional markets such as America, West Africa, Caribbean and North Europe to form a more comprehensive and balanced globalized network layout.

About 180 container vessels with a total capacity of 1,150,000 TEUs were deployed along the Belt and Road, accounting for approximately 62% of the Company’s total container shipping capacity. Besides, it had more than 150 sea-rail container transportation routes in operation, covering more than 100 major ports and hinterland stations across 27 provinces, autonomous regions and centrally administered municipalities.

Looking ahead to 2018, the world economy will maintain a good momentum for recovery and China will continue to deepen its economy transformation and high quality development. With steady progress in carrying out the Belt and Road Initiative, new cooperation results and opportunities are emerging.

While, due to intensifying competition in the world trade, the policy adjustments in major economies and the uncertainties derived therefrom, the risk of the spread of trade protectionism is increasing. In addition, there is oversupply in some shipping routes and concern over the concentrated new vessel delivery in the first half of the year.

All of these will bring uncertainties to the container shipping market. However, with in-depth consolidation of the container shipping industry, the overall operation in the market will focus more on enhancing customer service quality and improving service products, rendering competitions in the market more rational, the Company added.

Sea News, April 6