Sinotrans to focus on logistics in the wake of its acquisition

Sinotrans & CSC Holdings Co, China's second-largest shipping company by fleet size, will focus on developing integrated logistics, energy transportation and port businesses after its acquisition by China Merchants Group, officials said on Tuesday.

China Merchants is a State-owned conglomerate based in Hong Kong, with business in transportation, finance and real estate. The acquisition, aimed at optimizing shipping and multimodal logistics resources, as well as enhancing the country's energy security, was approved by government regulators in December.

Li Jianhong, chairman of China Merchants, said the reorganization is a practical way to achieve business scale and synergies in particular in the sectors of logistics, energy and bulk shipping, property development, ports and marine and offshore engineering between the two companies to better compete with global rivals.