The world economy has been significantly decelerating in the past few years and the Chinese economy is experiencing the “new normal”, stagnation continues in the container shipping market. To counter this challenge and capitalize on the trends toward bigger ships, alliance-based operation, and industry integration; capture the "one belt, one road" strategic opportunities; achieve synergies; and boost overall competitiveness, the companies decided to restructure now. The restructured COSCO will focus on the four strategic dimensions (anti-periodicity, profitability, globalization, and at-scale growth) to continue creating value.＞ 2、What made COSCON and CSCL suitable partners? What will be the benefits for both?
As leading players in China's shipping industry, China COSCO and China Shipping and their subsidiaries have years of collaboration and exchange experience. Given the macro climate, the shipping sector is undergoing adjustment and transformation, and regional and emerging markets are increasingly important. Ongoing development will require tapping the synergies between companies in business clusters and growing into a global company that meets market needs.＞ 3、What benefits will restructuring and integration bring to our clients?
After the restructuring and integration, China COSCO will become the fourth largest containership fleet in terms of capacity with container shipping chain as its core services, and the second largest port operator globally in terms of total throughput. We will have greater network coverage, capacity, and internal control so they will be able to provide customers with higher-quality services and meet more rigorous service standards.＞ 4、Will the number of new shipping routes and service offerings increase after the restructuring and integration? When will that happen?
We will combine the route networks of COSCON and CSCL to bring clients optimal product offerings. At this stage, we are still planning routes and products, which we look forward to announcing when planning is done.＞ 5、During the restructuring and integration, who will be my contact—COSCON or CSCL? Will my sales and customer service representatives change?
Before completion of the restructuring and integration, clients should continue to work with their current points of contact at COSCON and CSCL and their related businesses. We shall make our best effort to maintain continuity of customer-facing staff, ensure a smooth transition, and avoid fluctuations in our customer service.＞ 6、When will COSCON and CSCL finalize the restructuring and integration plan ?
In order to achieve a smooth transition, we are making well-thought plans on It system integration, system capacity upgrades, employees training, business difference analysis etc. Meanwhile, we will actively communicate with customers, and take this restructuring and integration as a chance to further improve our customer service.＞ 7、Who will address my questions and concerns? How can I obtain the latest information?
We will post the key information on restructuring and integration on our company website as soon as possible. Please feel free to contact your sales manager with any questions, or email us at email@example.com.