Top Biz News

Generator signs JV deal to ship coal

By Chen Liying (Shanghai Daily)
Updated: 2007-03-03 14:21

China Shipping Group Co has signed an agreement with Shenhua Group Corp to reinforce cooperation in a joint shipping venture that will carry coal to Shenhua's power plants.

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Zhuhai New Century Marine Co, a 50-50 venture between China Shipping Development Co, a China Shipping subsidiary, andChina Shenhua EnergyCo, a Shenhua Group unit, will become the main supplier of coastal coal transport services to power plants within the Shenhua Group under the deal, China Shipping Development told theHong KongStock Exchange yesterday.

Zhuhai New Century is scheduled to attain shipping capacity of one million dead-weight tons by 2010 by building and purchasing new vessels, the company said in the statement.

In the near term, Zhuhai New Century will increase its capacity by 350,000 DWT, it said.

"The deal is designed to meet the growing coal transport demand of Shenhua Group and to develop China Shipping's business," China Shipping Development, the nation's biggest oil carrier, said in the statement.

China Shipping also agreed to support Shenhua Group in expanding its market for the import and export of coal and cooperate in the development of the Huang Hua Gang Port inHebeiProvince, according to the statement.

In another deal published on the Hong Kong bourse, China Shipping Container Lines Co, the container unit of China Shipping Group, signed a framework agreement to cooperate with China Railway Container Transportation Co, a state-owned concern engaged in railway container transport.

Both parties agreed to set up a strategic alliance and explore the feasibility of developing railway shipping.