China Shipping Group eyes energy-transport JVs
14 August 2008
China Shipping Group, the country's second-largest shipping firm, is nearing separate joint venture agreements for energy transportation, the South China Morning Post reported. China Shipping Group will form a joint venture with oil refiner Sinopec to transport liquefied natural gas and has already signed a separate framework agreement with China National Coal Group Corp for a coal transportation venture. The latter deal involves the shipment of 10 million tons of thermal coal annually to hubs around China. The JV will also build coal hubs themselves, with three locations already slated for construction. China Shipping Group chairman Li Shaode declined to comment on how much the company would invest in the hubs. Problems with China's coal transportation infrastructure have been one reason for the country's large-scale coal shortages this year.