China launches state-owned China Logistics Group to tackle global supply worries
The newly-formed CLG will include the parent firms of China Eastern Airlines, COSCO Shipping, and China Merchants Group as strategic investors.
China announced the launch of a new state-owned company - China Logistics Group (CLG) - state broadcaster CCTV reported on Monday, to strengthen domestic and global supply chains.
CLG has been formed through a merger of China Railway Materials, China National Materials Storage and Transportation Group, Huamao International Freight Limited Company Shenzhen Branch, China Logistics, and China National Packaging Corporation, CCTV said in its report.
The newly-formed CLG will also include the parent firms of China Eastern Airlines, COSCO Shipping, and China Merchants Group as strategic investors.
CLG currently covers 30 Chinese provinces, is present across five continents, and operates three million vehicles, the report said.
The group also has property rights on 24.26 million square metres of land, owns 120 designated railway lines, and has 42 futures delivery warehouses, according to this report by Global Times.
From a long-term perspective, the move is conducive to fostering China's logistics security and beefing up China's logistics sector globally, according to Li Hongchang, deputy director of the Chinese Transportation Economic Research Centre.