History
In January 2016, the Chinese State Council approved the merger of COSCO and China Shipping, forming COSCO Shipping.[9] The merger – which occurred during a downturn in the marine transportation industry – sought to achieve economies of scale.[10][11] The merger was also part of a Chinese government strategy to restructure its state-owned shipping sector.[12]
Shortly after, the subsidiary COSCO Shipping Holdings partnered with Shanghai International Port Group to acquire the majority stake of Orient Overseas (International) from Tung Chee-hwa-Chee-chen families.[13][14] The deal was completed in August 2018. Orient Overseas (International) is the parent company of OOCL. This will make it one of the world's largest container shipping company with a fleet of over 400 vessels.[15] In April 2016 the company agreed to buy 51% of Piraeus Port Authority,[16] which is listed on the Athens Stock Exchange (athex: PPA) and is a constituent of the FTSE/Athex Large Cap index. Its subsidiary Piraeus Container Terminal (PCT) has been operating two Piers at Piraeus Port since 2009.[16]
In January 2017, the company was awarded $26.1 billion by the China Development Bank to participate in the Belt and Road Initiative. The funding would run through 2021. COSCO has used the finances to invest in its ports and infrastructure projects.[17]
In May 2017, the company signed a deal with Kazakhstan's national railway company to take 24% stake in an inland port in the Khorgos Eastern Gate Special Economic Zone.[18] In December 2018, COSCO Shipping Ports secured a 35-year concession to operate and develop a newly built container terminal in Khalifa Port.[19] In November 2019, the company invested $660 million to upgrade the Piraeus container port, Greece's largest port.[20]
In May 2020, COSCO Shipping Ports, Dongfeng Commercial Vehicle, and China Mobile successfully transported a shipping container within Xiamen Ocean Gate Terminal using an AGV guided by 5G. The achievement demonstrated an application of 5G technology in developing a "smart port". At the event, the three companies announced a roadmap for large-scale implementation of 5G technology in ports.[21][22]
In July 2020, the company entered into an agreement with Alibaba and its affiliate, Ant Group, to jointly promote cooperation on the application of a shipping blockchain.[23]
COSCO Shipping and its predecessor COSCO, has a Hong Kong division, COSCO Shipping (Hong Kong) Limited, a private company formerly known as Cosco (Hong Kong) Group Limited. This acquired listed company COSCO Shipping International (at that time, Shun Shing Holdings) as a vehicle of backdoor listing in 1997 and bought the real estate businesses, such as Shun Shing Construction and an office building, from COSCO Shipping International in the 2000s.[24][25]
In 1997, Cosco (HK) Group purchased a 20% stake in Lai Sun Hotels.[26] After the 1997 Asian financial crisis, Lai Sun Development, the parent company of Lai Sun Hotels, scrapped the IPO of Lai Sun Hotels and sold all the assets of Lai Sun Hotels instead. [27]
In 2023 the Bulgarian agent of COSCO Shipping lines, Three Stars Ltd, was accused in the local media of racketeering and violating antitrust laws.[28]
The company was a shareholder in the Chinese real estate developer, Sino-Ocean Group. The stake was sold in 2010.[29] It was reported that the SASAC of the State Council has ordered Government owned companies to sell real estate development unit if it is not their main businesses.[30]
U.S. sanctions
In September, 2019, the US Treasury Department sanctioned the tanker subsidiary of COSCO Shipping, COSCO Shipping Tanker (Dalian) Seaman & Ship Management, and COSCO Shipping Tanker (Dalian), for breaching the United States sanctions against Iran. However, the parent company of the aforementioned companies were not sanctioned.[31] The US lifted the sanctions against COSCO Shipping in January 2020.[32]
In January 2025, COSCO was added to a United States Department of Defense list of companies that allegedly work with the People's Liberation Army.[33]
