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CHINA CHANGJIANG NATIONAL SHIPPING(GROUP)CORPORATION(CSC)

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Under administration of State-owned Assets Supervision and Administration Commission of State Council, China Changjiang National Shipping (Group) Corp. (hereinafter referred to as CSC), one of first 57 pilot groups separately listed in plan, is the largest backbone shipping group in Chinese inland river.

I. Development Course

Predecessor of CSC, aged more than 130 years today, can be traced to government-supervised and merchant-managed Changjiang shipping enterprise, which was founded in the late years of Qing Dynasty. Shipping Administration Bureau of Changjinag Region was founded in 1950, when the enterprise began to have the current name.

In 1984, administration system of Changjiang shipping was reformed, and Changjiang Ship Corporation under Ministry of Communications was founded, whose name was changed into China Changjiang Ship Corporation in 1991. In Mar. 1993, China Changjiang Shipping Group was founded with China Changjiang Ship Corporation as core. In 1996, name of the core enterprise was changed into China Changjiagn National Shipping (Group) Corporation.

II. Scale of Group

Up to the end of 2005, CSC has owned assets of 22.2 billion yuan, and the employees have reached 60 thousand. Currently, CSC owns 18 wholly-owned subsidiaries and 1 oversea subsidiary; also, it holds share of one subsidiary. The subsidiaries disperse in the 6 provinces and 2 metroplolises along the Changjiang River, namely Jiangsu, Anhui, Jiangxi, Hubei, Hunan, Sichuan, Shanghai and Chongqing, as well as 2 special economic regions, namely Shenzhen and Zhuhai. Additionally, CSC has established subsidiaries, joint-venture companies and institutions stationed abroad at the key ports of rivers and seas and in America, German, Singapore and Hongkong, etc.

 

III. Main businesses

In accordance with the requirement of orientation of key enterpsies directly under central government put forward by State-owned Assets Supervision and Administration Commission, marine transport forms the core business of CSC; also, CSC is engaged in ship building and repairing, logistics as well as related supporting service.

As far as marine transport is concerned, CSC owns and controls nearly 2,800 ships  including various transport ships and auxiliary ships, with cargo deadweight ton of 5.20 million, TEU (twenty-foot equivalent unit) of 5040 and car positions of 4,000. Mainly, it provides bulk transport service, such as coal, ore, building materials, nonmetal ore and steel, etc, oil tanker service, container transport service and specialized transport service, such as liquefied gas, roll-on/roll-off, bulk cement and asphaltum. The shipping line covers the main routes and main branches of the Changjiang River and radiates across coastal sea, near sea and ocean. Global ocean-going oil transport line and ocean-going bulk transport line have been explored. Currently, maritime transport accounts for 60% above of Group’s total transport business. Based on the Changjiang River and characterized by direct river-sea transport and sea-river combined transport, the outward-oriented development pattern has been initially formed, connecting coastal area with ocean as well as operating across regions and countries.

As far as ship industry is concerned, CSC has 7 large-sized or medium-sized shipyards, competent of building various 50000-ton-below ships, most of which are exported to Europe and America; CSC has become an important base for exporting and earning foreign exchange in Chinese ship industry. The annual ship building capacity reaches 500 thousand gross tons. The annual production value accounts for 20% above of the total production value made by all the ship building enterprises along the Changjiang River. Except ship building, these shipyards also are engaged in manufacturing other products, such as electromechanical products, harbor machinery and steel structure, etc. As far as tour business is concerned, CSC owns 29 foreign-related and domestic cruises, 18 of which are foreign-related luxurious cruises ranging from three stars to five stars. The foreign-related cruises receive more than 100 thousand tourists per year, which accounts for nearly 1/3 of the total amount of tourists received by the cruises on the Changjiang River. It is the largest tour enterprise on the Changjiang River and the third largest tour enterprise in China, which has undertaken the task of receiving and guarding leaders of CPC and the Government as well as foreign state head and foreign political leaders several times. As far as fuel sale is concerned, the annual sale volume, under the cooperation with Sinopec, exceeds 1.3 million tons, which accounts for 60% above of fuel sale volume on the Changjiang River.

Additionally, CSC is also engaged in diversified businesses, such as real estates development, vehicle sale, hotel, foreign economic and technical cooperation, imports and exports as well as Internet network development, etc.

IV. Status and effects 

During the past several decades, CSC has undertaken transport of raw materials and products for along-Changjiang and coastal large-sized steel enterprises, such as Shanghai Baosteel Group Corporation, Jiangsu Shagang Group, Nanjing Iron & Steel United Co., Ltd., Maanshan Iron & Steel Co., Ltd., Wuhan Iron and Steel (Group) Corp. and Chongqing Iron and Steel Group, etc., electrical power enterprises, such as Shanghai Power Plant, China Huaneng Group, Jianbi Power Plant and Yueyang Power Plant, etc., along-Changjiang petrochemical industry enterprises under Sinopec and building material enterprises, such as China Anhui CONCH Group, Jiangxi Yadong Cement Co., Ltd. and Huaxin Cement Co., Ltd. etc. Following the business philosophy of “honest, high quality and win-win interaction”, CSC, with safe, high-quality and effective service, supports the development of industry related to lifeblood of the national economy, creates outstanding economic benefit and social benefit and makes indispensable contribution to along-Changjiang economy development and social progress. The annual cargo transport capacity of CSC reaches 120 million tons. Transport volume on the Changjiang River accounts for nearly 25% of the total volume on Changjiang water system; rotation volume of freight transport accounts for 50% above; transport volume of key materials, such as ore, accounts for 80% above, and transport volume of crude oil accounts for 100%. Meanwhile, CSC has played a role of main force in martial logistics, fighting against flood and important national reception. CSC is awarded with the title of “National Team on the Changjiang River” and “National Guest Fleet”.

V. Long-run Development

In accordance with the guidelines of CPC’s Third Plenary Session of its Sixteenth Central Committee and new requirement upon reforming system of supervising and managing state-owned assets, CSC energetically schemes its long-term development and prepare “the 11th five-year” development plan. During the 11th five years, CSC will step to implement the target of 3 key transformations, namely transformation to ocean shipping and sea-river combined transport enterprise, transformation to integrated logistics enterprise and transformation to modern enterprise with diversified ownership. By the end of the 11th five years, the key economic objectives shall increase by 50% compared to that of the end of the 10th fiver years, including business income, owned and controlled assets as well as gross profit; we will endeavor to quadruple the objectives. As far as the core business is concerned, the vision is “first place in inland water transport; leading position in maritime logistics”. CSC will endeavor to become internationally-recognized shipping enterprise with prominent core competitiveness, outstanding R&D advantage and excellent brand image. 

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