China creates new state-owned logistics group amid supply chain disruptions: CCTV

HONG KONG: China has a new state-owned logistics group on Monday December 6 state broadcaster CCTV reported on Monday to strengthen domestic and global supply chains amid widespread disruptions caused by the Pandemic.

China Logistics Group was aiming to become a global supply chain organiser by developing international trade links and freight services, as well as cross-border e-commerce, according to CCTV.

The new company was formed through a 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, according to CCTV.

The merger comes at a time when the pandemic disrupts global supply chains, particularly in Chinese ports, where even one positive COVID 19 case can result in operations being suspended.

The parent companies of China Eastern Airlines, COSCO Shipping and China Merchants Group will also be included in the newly formed group, which will hold share percentages of 10 per cent, 7.3 per cent and 4.9 per cent.

The remaining shares will be split evenly between China's State-owned Assets Supervision and Administration Commission and China Chengtong Holdings Group. The state asset regulators control all remaining shares is given by Chengtong Holding, which is managed centrally by SASAC.

CCTV said that the state-owned logistics giant currently covers 30 Chinese provinces, has a presence in five continents and operates 3 million vehicles.