Wikipedia

COSCO

This article is about the former company. For the company after the merger, seeCOSCO Shipping.
Not to be confused withCostco,Cusco,Cisco,orCosco (disambiguation).

China Ocean Shipping Company(abbreviated asCOSCO) was a former shipping corporation from 1961 to 2016, owned by theState Councilof China. The company merged withChina Shipping Group Companyto formChina COSCO Shipping Corporationin January 2016.

China Ocean Shipping Company
Native name
Trung Quốc viễn dương vận chuyển công ty hữu hạn
FormerlyChina Ocean Shipping (Group) Corporation
Company typeSubsidiary;state-owned
IndustryTransportation
FoundedApril 27, 1961;63 years ago(1961-04-27)
Defunct2016
Fatebecame a subsidiary
SuccessorChina COSCO Shipping
Headquarters
Xicheng, Beijing
,
China
Area served
Worldwide
ServicesFreight forwarding
Shipbuilding
Ship repairing
Terminal operations
Websitecosco (archived)
COSCO Vancouver
COSCO 40 foot container
Semi-submersibleheavy lift vesselXiang Rui Kou
President of COSCO Group Capt. Wei Jiafu (left) meets with Deputy Foreign Minister of Greece, Dimitris Kourkoulas (right), 2012.

COSCO was founded in 1961 as a state-ownedshippingandlogisticsservices supplier company.[1]

COSCO headquarters is in Ocean Plaza in theXicheng DistrictinBeijing.[2][3]It owns 1114 ships, including 365 dry bulk vessels, a container fleet with a capacity of 1,580,000twenty-foot equivalent units(TEU), and a tanker fleet of 120 vessels.[4]The fleet calls at over a thousand ports worldwide.[5]It ranks among the largest in both number ofcontainerships and aggregate container volume in the world.[6]In 2012, it was among China's top 15 brands.[7]

It was the largest dry bulk carrier in China and one of the largest dry bulk shipping operators worldwide. In addition, the Group is the largest liner carrier in China.[8]

COSCO division COSCO Shipping Port Company manages the company's port operations.[9]: 68 

History

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China Ocean Shipping Company (1961–1993)

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China Ocean Shipping Company, or COSCO in short, was founded in 1961 as a Chinesegovernment agency.In the same year, a subsidiary was formed in Guangzhou, Guangdong Province. The Guangzhou subsidiary purchased a British vessel and renamed it asGuanghua(Chinese:Quang hoa).Guanghuamade its maiden voyage to Jakarta for the People's Republic of China in April 1961.[10]

After the USresumed diplomatic relations with Chinain the 1970s, China Ocean Shipping Company signed an agreement with American companyLykes Brothers Steamship Companyin 1979. The agreement opens the commercial sea routes between the United States and the People's Republic of China.[11]In the same year, COSCO became the Chinese side representative to collaborate withInternational Telephone and Telegraphon repairing the communication facilities in the coastal cities of China.[12]

In 1981, COSCO won a contract from the Pakistani Government owned National Tanker Company of Pakistan, for crude oil transport.[13]

In 1991 COSCO was asked by the USFederal Maritime Commission(FMC) to submit information regarding Chinese Government restricting U.S.-flag carriers on doing business in China. COSCO asked FMC to drop its probe instead.[14]FMC also investigated COSCO for its pricing behavior in 1997, but stated there was not enough evidence to launch a formal probe on alleged under-pricing its service to eliminate competitor.[15]

In August 1993, COSCO's shipYinhe,was anchored off the coast ofOman.US government alleged that the ship carried material exported to Iran, which could be used to make chemical weapons. COSCO claimed that the ship only contained "paper goods, hardware and machine parts".[16]In what became known as theYinheincident,United States military vessels and aircraft followed theYinhe,disrupting its normal travel route.[17]: 69 The United States unilaterally disabled theYinhe's civilian GPS, causing it lose direction and anchor on the high seas for twenty-four days until it agreed to inspection.[18][19]TheYinheexperienced shortages of water and fuel.[17]: 69–70 The inspection, which occurred in Saudi Arabia did not find any improper chemicals[20]and on September 4, representatives of the Chinese, Saudi and United States governments jointly signed a certification that the ship's cargo did not contain materials related to chemical weapons.[21]: 54 

China Ocean Shipping (Group) Company (1993–2015)

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The company became aholding companyand renamed as China Ocean Shipping (Group) Company in 1993.[22][non-primary source needed]Two other government owned companies, China Marine Bunker Supply Company (Chimbuscoin short) and China Road Transport Company, which engaged in oil tanker and road transport businesses respectively, became the subsidiaries of the group in 1988 and 1992[23]respectively. China Road Transport Company was renamed into COSCO Logistics in 2001 (now part of COSCO Shipping Logistics). As of 2003, COSCO Logistics engaged in shipping agency, freight forwarding, third party logistics and supporting services.[23][non-primary source needed]While Chimbusco became a joint venture withPetroChinasince 2003.[24]

COSCO has a Hong Kong division which the division acquired a HK-listed companyShun Shing Holdings[a]in February 1997.[25]Hong Kong was a British colony until June 30, 1997, and has been aspecial administrative region of Chinawith a separate jurisdiction system since July 1. Another subsidiary of COSCO HK at that time,[25]COSCO Pacific,[b]was a HK-listed company since 1994. COSCO Pacific has a joint venture withHongkong International TerminalsLimited, which operates a terminal inKwai Tsing Container Terminals,Hong Kong since 1991.[26]COSCO Pacific acquired 49% stake of COSCO Logistics from the parent company in 2003. COSCO retained the remaining 51%.[23]COSCO Pacific also owned 20% stake of Hong Kong-basedChong Hing Bankfrom 1997[27]to 2007. In 2007 the stake was sold to the parent company, COSCO HK.[28][29]

In 1995, another subsidiary, COSCO Corporation (Singapore) Limited,[c]became a listed company in Singapore Exchange.[30]The company was a component ofStraits Times Indexuntil 2010.[31]

COSCO acquired aShanghai-listed company in 1997 as a vehicle ofbackdoor listing.It becameCOSCO Development,[d]which engaged in real estate. The direct parent company of COSCO Development was sold in 2005, thus COSCO Development was no longer part of the COSCO Group.[32]Also in 2005, COSCO Group acquired a company from COSCO Development.[33]That company was the operator ofBoao Forum for Asia.[22][non-primary source needed]

In 1997,Dianne FeinsteinandBarbara Boxer,United States senators from California, had asked theClinton administrationto investigate COSCO's leasing ona former naval basein Long Beach. The site was developed into a container port terminal, Pacific Container Terminal.[34]

In 2002, another subsidiary,COSCO Shipping Co., Ltd.,[e]became a listed company in Shanghai.

In 2004, COSCO formed a joint venture with fellowCentral GovernmentownedAnsteel Group(AngangGroup).[35]

In 2005, the flagship subsidiary of COSCO,China COSCO Holdings,became a listed company.[36]TheA shareof China COSCO Holdings was listed in Shanghai since 2007.[37]

After the post-2008 financial crisiscollapse of global shipping, COSCO began gradually acquiring the Greek port ofPiraeus.[9]: 68 Under COSCO, Piraeus has become a busy port, rising from traffic of 400,000 containers in 2008 to nearly five million containers in 2018.[9]: 68 Most European trade with China occurs via Greek ships, including through Piraeus.[9]: 68 

During the2022 Russian invasion of Ukraine,most shipping companies halted all container shipping to Russia, except for basic food products, medicine and humanitarian aid. The exception is COSCO which continues to ship to Russia, and was the largest shipping company to do so.[38]

Mergers

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In 2005, a smaller Central Government owned company, China Ocean Shipping Tally (known asChina Tallyin short), was merged into COSCO Group.[39]

In 2008, China COSCO Holdings was part ofFinancial Times Global 500for the first time.[40]

By 2015, after more than 5 decades, COSCO Group expanded into one of the major shipping company of the country. It also had a few listed subsidiaries: COSCO Pacific,COSCO International Holdings,China COSCO Holdings,China International Marine Containers,etc.,. Real estate developer,Sino-Ocean Group,was an associate company of COSCO until 2010.

In December 2015, COSCO Group merged with fellow Chinese Government ownedChina Shipping Group[41]to form China COSCO Shipping. COSCO Group was retained as an intermediateholding company.

In December 2017, COSCO Group (China Ocean Shipping (Group) Company) was re-incorporated from "An industrial enterprise owned by the whole people" to simply alimited company.The name of the company, also changed to China Ocean Shipping Company, Limited (Chinese:Trung Quốc viễn dương vận chuyển công ty hữu hạn).[42]

Subsidiaries

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COSCO contains several listed companies and has more than 300[citation needed]subsidiarieslocally and abroad, providing services infreight forwarding,ship building,ship repair, terminal operation, container manufacturing, trade, financing,real estate,andinformation technology.[43]

On the eve of 2015 merger, COSCO Group has a fewlisted companies:[44]

Moreover,China International Marine Containersis an associate company of the group, which COSCO indirectly owned 22.77% shares of that listed company as of December 2015.[48]The stake was owned by COSCO Pacific until 2013.[49]

As of 2000, COSCO also owned 30% stake ofChina Cargo Airlines.[50]

COSCO also had an unlisted business unit in Hong Kong, which was known as COSCO (Hong Kong) Group Limited. COSCO (H.K.) Group was the direct parent company of COSCO Pacific (valid until December 2004[51][52]) andCOSCO International.[46]COSCO (H.K.) Group bought the 20% stake ofChong Hing Bankand the entire stake of Shun Shing Construction fromCOSCO Pacific[28][29]andCOSCO International[53]respectively in 2007.

Accidents

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2009 Norway oil spill

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Main article:Full City oil spill

On 31 July 2009, thePanama-flaggedbulk carrier,Full City,operated by COSCO Group's HK division,[54]experienced engine failure and ran aground nearLangesund,Telemark,Norway,during a storm, spilling 200 tons ofheavy bunker fuel oilin an ecologically and environmentally sensitive wildlife area.[55]

See also

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Footnotes

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  1. ^After the acquisition, the listed company was known as COSCO International. As of 2020, is known asCOSCO Shipping International(Hong Kong)
  2. ^As of 2020, the company is known asCOSCO Shipping Ports
  3. ^As of 2020, the company is known asCOSCO Shipping International (Singapore)
  4. ^COSCO DevelopmentandCOSCO Shipping Developmentare not the same company. As of 2020, the listed company that formerly known as COSCO Development, is known asShanghai Wanye Enterprisesand no longer a real estate company
  5. ^COSCO Shipping Co., Ltd. and China COSCO Shipping are not the same company. China COSCO Shipping is the ultimate parent company of the group. After the 2015 merger, COSCO Shipping Co., Ltd. was renamedCOSCO Shipping Specialized CarriersCo., Ltd.

References

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general
  • Kasic, Christopher (2012). Hill, Karen (ed.). "China Ocean Shipping (Group) Company".International Directory of Company History.128.Gale.
specific
  1. ^"China Ocean Shipping Group Co".Bloomberg.Retrieved14 March2013.
  2. ^"Contact UsArchived2010-01-30 at theWayback Machine."COSCO.
  3. ^"DonationArchived2011-07-27 at theWayback Machine".COSCO. May 21, 2008.
  4. ^"China Cosco Shipping Group Profile".Retrieved4 August2017.
  5. ^COSCO GroupArchived2008-05-29 at theWayback Machine
  6. ^"Alphaliner TOP 100".January 2019.
  7. ^Dooley, Howard J. (Spring–Summer 2012). "The Great Leap Outward: China's Maritime Renaissance".The Journal of East Asian Affairs.26(1). Institute for National Security Strategy: 57.JSTOR23257908.
  8. ^"China Ocean Shipping (Group) Company Company Profile".Yahoo Business.Retrieved18 March2013.
  9. ^abcdCurtis, Simon; Klaus, Ian (2024).The Belt and Road City: Geopolitics, Urbanization, and China's Search for a New International Order.New Haven and London:Yale University Press.ISBN9780300266900.
  10. ^Từ “Quang hoa luân” đến “Trung xa Hà Lan luân”.people.cn(in Chinese (China)).Xinhua News Agency.April 28, 2014.RetrievedDecember 13,2020.
  11. ^"U.S. and China Open Ports to 2-Way Trade Under Private Accord".The New York Times.February 24, 1979.RetrievedDecember 19,2020.
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  13. ^"Pakistan-China Oil Deal".The New York Times.AP. July 9, 1981.RetrievedDecember 19,2020.
  14. ^"COSCO HITS FMC INVESTIGATION OF CHINA'S MARITIME PRACTICES".joc.May 20, 1991.RetrievedDecember 19,2010.
  15. ^"COSCO UNDER A MICROSCOPE".joc.June 22, 1997.RetrievedDecember 19,2010.
  16. ^"China Says Cargo Ship Will Anchor Off Oman".The New York Times.Reuters. August 15, 1993.RetrievedDecember 19,2020.
  17. ^abCheng, Joseph Y.S.; Ngok, King-Lun (2004)."The 2001" Spy "Plane Incident Revisited: the Chinese Perspective".Journal of Chinese Political Science.9(1): 63–83.doi:10.1007/BF02876957.S2CID153665643.
  18. ^Zhao, Suisheng (2023).The Dragon Roars Back: Transformational Leaders and Dynamics of Chinese Foreign Policy.Stanford University Press.p. 63.doi:10.1515/9781503634152.ISBN978-1-5036-3415-2.
  19. ^"The Big Dipper: China's Rival to GPS Becomes an Investment Star".Week In China.2020-07-03.Retrieved2023-06-30.
  20. ^Zhao, Suisheng (2023).The Dragon Roars Back: Transformational Leaders and Dynamics of Chinese Foreign Policy.Stanford University Press.p. 63.doi:10.1515/9781503634152.ISBN978-1-5036-3415-2.
  21. ^He, Kai (2016).China's Crisis Behavior: Political Survival and Foreign Policy after the Cold War.Cambridge:Cambridge University Press.ISBN978-1-107-14198-8.
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  24. ^"PetroChina inks Chimbusco stake".tradewindsnews.March 11, 2003.RetrievedDecember 19,2020.
  25. ^ab"Shun Shing set for takeover as Cosco nets 61pc".South China Morning Post.Hong Kong. February 28, 1997.RetrievedDecember 19,2020.
  26. ^"Milestones".Hongkong International Terminals. 2020.Retrieved14 December2020.
  27. ^"Cosco Pacific Buys 20% Of Liu Chong Hing Bank".The Wall Street Journal.July 16, 1997.RetrievedDecember 19,2020.
  28. ^ab"Cosco Pacific to sell 20pc stake in Chong Hing".South China Morning Post.Hong Kong. August 25, 2007.RetrievedDecember 19,2020.
  29. ^abAnnual Report 2008(PDF)(Report). Chong Hing Bank. 2009.RetrievedDecember 19,2020.
  30. ^Đối mặt kinh tế toàn cầu hóa trung xa đánh ra sáng tạo bài.Guangming Daily(in Chinese (China)). October 26, 1998.RetrievedDecember 19,2020.
  31. ^"Cosco Corp replaced by CaptiaMalls Asia on Straits Times Index".seatrade-maritime.March 15, 2010.RetrievedDecember 19,2020.
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  33. ^Trung xa phát triển hướng trung xa tập đoàn chuyển nhượng tài sản.Shanghai Securities News(in Chinese (China)). June 13, 2005.RetrievedDecember 19,2020– via Sohu.
  34. ^"Senators Ask for Inquiry on Leasing of California Base to Chinese".The New York Times.Reuters. March 13, 1997.RetrievedDecember 19,2020.
  35. ^Trung xa an cương liên thủ thành lập vận tải đường thuỷ công ty khai thác hậu cần sản nghiệp lĩnh vực.Nanfang Daily(in Chinese (China)). March 3, 2004.RetrievedDecember 19,2020– viaSinanews portal.
  36. ^"Candidates buoyed by successful run of IPOs".South China Morning Post.Hong Kong. August 8, 2005.RetrievedDecember 19,2020.
  37. ^Tsang, Denise (30 June 2007)."Shipping giant's A-share IPO raises 15b yuan".South China Morning Post.Hong Kong.RetrievedDecember 19,2020.
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  39. ^Về Trung Quốc viễn dương vận chuyển ( tập đoàn ) tổng công ty cùng Trung Quốc ngoại luân lý hóa tổng công ty trọng tổ thông báo(Press release) (in Chinese (China)). Xí nghiệp cải cách cục of the SASAC of the State Council. March 7, 2005. Archived fromthe originalon January 31, 2023.RetrievedDecember 19,2020.
  40. ^Quốc rượu Mao Đài thượng bảng toàn cầu thị giá trị trước 500 cường.Quý Châu đô thị báo(in Chinese (China)). July 29, 2008.RetrievedDecember 19,2020– via Sina news portal.
  41. ^"China shipping groups merger plan erases S$1.27b in market value, Cosco Corp Singapore hit".The Straits Times.Singapore. Bloomberg. December 14, 2015.RetrievedDecember 12,2020.
  42. ^Về cổ phần khống chế cổ đông sửa chế thay tên cập tương quan công thương đăng ký hạng mục công việc thay đổi thông cáo(PDF)(Press release) (in Chinese (China)). COSCO Shipping Holdings. December 13, 2017.RetrievedDecember 12,2020– via hkexnews.hk.
  43. ^"Fleet".COSCO Group. Archived fromthe originalon 29 March 2010.Retrieved4 April2010.
  44. ^Trung xa trung hải xác nhập phương án đem thực mau ra sân khấu tập trung vận chuyển đem thành chỉnh hợp trọng điểm.China Securities Journal(in Chinese (China)). 11 December 2015.Retrieved20 December2020– via people.cn.
  45. ^"Report of the Directors"(PDF).2015 Annual Report (Report). COSCO Pacific. 2016. p. 96.Retrieved20 December2020.
  46. ^ab"Directors' Report"(PDF).2015 Annual Report (Report). COSCO International. 2016. p. 114.Retrieved20 December2020.
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  48. ^"Changes in Share Capital and Information on Shareholders"(PDF).2015 Annual Report (Report). China International Marine Containers. 2016. p. 113.Retrieved20 December2020– via euroland.
  49. ^Trung xa Thái Bình Dương tất bán trung tập tập đoàn 21.8% cổ quyền bộ hiện 95 trăm triệu cảng nguyên.yicai(in Chinese (China)). 21 May 2013.Retrieved20 December2020.
  50. ^"Taiwan Airline to Invest in a China Eastern Unit".The New York Times.September 8, 2000.RetrievedDecember 19,2020.
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  52. ^2005 Annual Report(PDF)(Report). COSCO Pacific. 2006.Retrieved20 December2020.
  53. ^2007 Annual Report(PDF)(Report). COSCO International. 2008. p. 9.Retrieved14 December2020.
  54. ^"Cosco HK is named as owner behind 'Full City'".tradewindsnews.20 August 2009.Retrieved20 December2020.
  55. ^Wojciech Moskwa (3 August 2009)."Norway police charge ship captain after fuel spill".Reuters.Retrieved16 May2010.
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