COSCO, SIPG take a 20% stake in Chinese logistics player SAIC Anji

December 19, 2024, by Naida Hakirevic Prevljak

Chinese state-owned transportation service conglomerate COSCO SHIPPING Group and terminal operator Shanghai International Port Group (SIPG) have invested in SAIC Anji Logistics, a logistics unit owned by Shanghai-based SAIC Motor Corp, each obtaining 10% of the company’s shares.

As explained, the move will deepen the strategic cooperation among the three companies in the field of global automotive supply chain and help Chinese auto brands accelerate their “going global” strategy.

COSCO and SIPG participated in the SAIC Anji Logistics capital raise initiative as strategic investors, each investing CNY 1 billion (about $137 million). SAIC Anji Logistics intends to use the funds to expand its international business, including investment in roll-on/roll-off (RoRo) fleets and supporting logistics services, to create a “door-to-door” international full-chain service system for “Chinese vehicles going global”.

China COSCO Shipping Group said that the transaction will help deepen the company’s cooperation with Anji Logistics in the field of automobile transportation and promote the deep integration and development of advanced manufacturing and ‘modern’ service industries.

Forming a strategic alliance with the leading companies in the automotive logistics industry is expected to provide ‘strong’ support for Shanghai Port to build “the world’s largest RoRo port”, further enhancing Shanghai’s position in the international shipping market, and adding new impetus to the construction of Shanghai International Shipping Center, SIPG noted.

SAIC Group said that as China’s first automobile company to go global in “a systematic, planned and organized manner”, the deepening of cooperation with China COSCO Shipping Group and Shanghai International Port Group will achieve optimal resource allocation and coordinated operation through strong alliances, further improve logistics efficiency, optimize operating costs, and enhance the global market competitiveness of SAIC brands.

To remind, in early 2024, SAIC named and commissioned the LNG dual-fuel car carrier SAIC Anji Sincerity. Constructed by CSSC Jiangnan Shipyard, the vessel, featuring 7,600 parking spaces, is built for SAIC Anji Logistics.

Saic Motor said that SAIC Anji Sincerity stands out as “the world’s largest” LNG dual-fuel RoRo ship currently in operation, setting new standards in the industry.

World’s largest LNG-powered car carrier named and delivered

Vessels

Anji Logistics is the first domestic logistics company to deploy ‘important’ RoRo ports along the coast and rivers. It has built a coastal and riverside “T”-shaped port logistics network in Shanghai, Dalian, Tianjin, Guangzhou, Nanjing, Wuhan, Chongqing, Taicang and other places, and has established a “friendly port” with the BLG Bremerhaven Port Car Terminal overseas.

At the same time, SAIC Anji Logistics has also established China’s largest self-operated fleet of automotive ships, comprising 32 vessels, including 11 river ships, nine domestic trade sea ships, and 12 foreign trade sea ships, with eight international routes to Southeast Asia, Mexico, South America West, Europe, and Australia-New Zealand.

SAIC Motor jointly opens ‘the largest‘ RoRo auto terminal in the Yangtze River basin

Coinciding with the abovementioned capital increase, a new RoRo terminal was opened at Taicang Port in East China’s Jiangsu province on December 12, 2024.

The Haitong Taicang Auto Terminal was jointly developed by SAIC Motor, SIPG, and Jiangsu Port Group.

The terminal covers 960,000 square meters, with a 708-meter shoreline. It is capable of simultaneously docking two 70,000-ton and one 3,000-ton RoRo ships and can park 32,000 cars at once. Its five auto service centers provide integrated port logistics services, including storage, inspection, maintenance, and charging.

Haitong Terminal, as SAIC Anji Logistics’ subsidiary, is expected to reach 3.5 million vehicles in 2024 in its annual throughput.

Shipping terminals are crucial hubs for global trade, key nodes in the global supply chain for complete vehicles, and vital gateways for Chinese vehicles to enter international markets.

As the largest RoRo auto terminal in the Yangtze River basin, with an annual throughput capacity of 1.3 million vehicles, the Haitong Taicang Auto Terminal will provide ocean-going vehicle logistics services for clients in the automotive industry, including SAIC Motor, and strive to open new channels for Chinese auto brands.