China Participates in Maritime Transport of Finished Cars (Joint Venture for Car Transport Formed in China)
October 29, 2002
Nippon Yusen Kaisha (NYK Line) and COSCO Shipping Co., Ltd., the only listed company (Shanghai) under the wing of the COSCO Group of China, have agreed to establish a joint venture, NYKCOS Car Carrier Company, Ltd. The contract for the joint venture and its articles of incorporation were signed by NYK President Takao Kusakari and Captain Wei Jia Fu, Group President & CEO of the COSCO (Group) Company, during a ceremony held at the COSCO Group's head office in Beijing on October 27, 2002 in the presence of Mr. Hong Shan Xiang, Vice Minister, Ministry of Communications, PRC; Mr. Liu Gong Chen, Executive Deputy Director-General, Maritime Safety Administration, PRC; and Mr. Li Ke Jun, President, China Classification Society, PRC.
The new joint company aims to meet the fast-growing demand for car transport by China's automobile industry through the synergistic effects of the combination of the world's most extensive network of pure car carrier (PCC) services, established by NYK Line over the years, and the far-flung business network operated throughout China by the COSCO Group.
- Purposes
- To participate in the fast-expanding transport of finished cars in China
- To lay the groundwork for the promising transport business of export and import cars
- Outline of the New Company
Name :NYKCOS Car Carrier Company Limited Capital : US$6,500,000 Equity shares : NYK 49% and COSCO 51% Head office : City of Guangzhou, Guangdong Province, PRC Chairman : Yet to be named (from COSCO) Vice chairman : Yet to be named (from NYK Line) Business offices: the head office and others in major Chinese cities, such as Shanghai, Tianjin and Changchun Employees : An initial staff of about 15 will be increased in parallel with the expansion of business. - Outline of Service
Starting date :January 2003 Coastal shipping: Cargo booking for and operation of pure car carriers
(Three or four small-sized pure car carriers, each capable of hauling about 1,000 cars, will be assigned to operate a regular service between North and South China.)
International shipping: One small-sized pure car carrier with a hauling capacity of about 1,000 cars will be assigned to engage in nearseas service. This service will be gradually expanded in conjunction with the growth of demand for the international transport of automobiles in China, which is expected to get into full swing from around 2004.