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State-owned China Logistics Group was launched yesterday by merging China Railway Material Group and four units of China Chengtong Holdings Group.
They are China Material Storage and Transport Co, CTS International Logistics Corp, China Logistics Co and China Packaging Corp.
And China Eastern Airlines, Cosco Shipping and China Merchants Group are onboard as strategic investors in the new China Logistics Group, holding stakes of 10%, 7.3% and 4.9%, respectively.
The state-owned Assets Supervision and Administration Commission (SASAC) and China Chengtong, a state-owned conglomerate, hold the remaining shares.
SASAC said that, with China Eastern, Cosco and China Merchants as shareholders, the new entity could “offer better strategies for its operations”.
Establishing China Logistics Group is part of the government’s streamlining of state-owned enterprises and developing the logistics industry.
It will offer a wide range of logistics services, including warehousing, distribution, packaging, multimodal transport, cross-border e-commerce, international trade and e-commerce.
At the launch in Beijing yesterday, SASAC director Hao Peng said: “China Logistics Group must adhere to the strategy of serving the country, focus on navigating domestic and international economic cycles and accelerate the construction of a nationwide comprehensive logistics data platform.
“The company should promote digitalisation, intelligent transformation and cross-border integration of traditional logistics businesses and help improve the stability and competitiveness of China’s supply chain.”