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Sinotrans bond sale to raise US$328.2 million to build working capital
SINOTRANS Ltd, the Hong Kong-listed unit of China's mainland state-owned shipping group Sinotrans & CSC group, aims to build working capital through a bond sale to raise CNY2 billion (US$328.2 million).
It will issue three-year, fixed rate bonds in Shanghai this week with sales completed within a few days, according to an exchange filing. This aims to create funds, reduce pressure "in maintaining cash flows and support stable operations," said a company statement.
The logistics arm, operating intra-Asia and domestic container shipping, launched its bond sales as the first tranche of its CNY40 billion bond programme, approved by shareholders more than six months ago.
London's Lloyd's List said Sinotrans increased its profit 9.2 per cent year on year to CNY711.1 million, adding that the company aims to purchase assets from its parent company Sinontrans & CSC and in turn become its logistics arm.
Maersk CEO: Cost cutting saves money and shields company in rate war
AP MOLLER Maersk Group CEO Nils Andersen sees cost cutting, combined with economies of scale, as the best road to profitability as well as a shield against rivals tempted to launch rate wars.
"We are absolutely cost competitive, and in some areas we are in a cost leading position," Mr Andersen told London's Containerisation International.
"It is less tempting for the other players to try to take market share from us, based on price. That is why we have been so focused on creating a strong, competitive cost position," said Mr Andersen, former CEO of Carlsberg.
"Six or seven years ago, we were behind the industry in terms of cost and margins. First, we steadily closed the gap with the StreamLine in 2008, and then there were all the costs we took out in 2009," Mr Andersen said.
"If you don't continue to find efficiencies and improve your cost position, then sooner or later you will be squeezed out of business, because that is the reality of the world we live in," he said.
Asked if cost cutting runs the risk of eliminating flexibility and thus the ability to respond to better markets, he said: "To be too optimistic on market growth is very dangerous. If you keep planning for growth and calibrating the size of your organisation and fleet to a growth that may not come, then you will not be able to make money.
Asked about the P3 mega-alliance that operationally unites Maersk with MSC and CMA CGM, he said: "It has obvious advantages to customers in terms of a better and stronger network. It brings cost savings to the three participants, and in addition will probably reduce the need for tonnage a little bit."
"It is also a reduction in the capital required, an improved cost position and a better proposition to the customer. So I hope it will be a long-term project and that is also the way it is intended and agreed," Mr Andersen said
It will issue three-year, fixed rate bonds in Shanghai this week with sales completed within a few days, according to an exchange filing. This aims to create funds, reduce pressure "in maintaining cash flows and support stable operations," said a company statement.
The logistics arm, operating intra-Asia and domestic container shipping, launched its bond sales as the first tranche of its CNY40 billion bond programme, approved by shareholders more than six months ago.
London's Lloyd's List said Sinotrans increased its profit 9.2 per cent year on year to CNY711.1 million, adding that the company aims to purchase assets from its parent company Sinontrans & CSC and in turn become its logistics arm.
Maersk CEO: Cost cutting saves money and shields company in rate war
AP MOLLER Maersk Group CEO Nils Andersen sees cost cutting, combined with economies of scale, as the best road to profitability as well as a shield against rivals tempted to launch rate wars.
"We are absolutely cost competitive, and in some areas we are in a cost leading position," Mr Andersen told London's Containerisation International.
"It is less tempting for the other players to try to take market share from us, based on price. That is why we have been so focused on creating a strong, competitive cost position," said Mr Andersen, former CEO of Carlsberg.
"Six or seven years ago, we were behind the industry in terms of cost and margins. First, we steadily closed the gap with the StreamLine in 2008, and then there were all the costs we took out in 2009," Mr Andersen said.
"If you don't continue to find efficiencies and improve your cost position, then sooner or later you will be squeezed out of business, because that is the reality of the world we live in," he said.
Asked if cost cutting runs the risk of eliminating flexibility and thus the ability to respond to better markets, he said: "To be too optimistic on market growth is very dangerous. If you keep planning for growth and calibrating the size of your organisation and fleet to a growth that may not come, then you will not be able to make money.
Asked about the P3 mega-alliance that operationally unites Maersk with MSC and CMA CGM, he said: "It has obvious advantages to customers in terms of a better and stronger network. It brings cost savings to the three participants, and in addition will probably reduce the need for tonnage a little bit."
"It is also a reduction in the capital required, an improved cost position and a better proposition to the customer. So I hope it will be a long-term project and that is also the way it is intended and agreed," Mr Andersen said
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