CHINESE shipping giant China Cosco Holdings Company Limited increased its first half net profit 174.9 per cent to CNY3.45 billion (US$507.3 million) year on year, reversing a CNY4.6 billion loss in the same period last year.

The profit attributable to shareholders was drawn on CNY45.55 billion in revenue, an increase of 55.5 per cent over the same period last year, said the company in a statement to the Hong Kong stock exchange.

Of the first half, ending June 30, the company said: "Major economies were easing out of recession. International trade was increasing, leading to significant growth in maritime transportation and throughput at ports. These developments were favourable to the group's operations."

Total cargo volume reached 2.95 million TEU, up 25.3 per cent year on year. Container shipping revenue, excluding income from chartered vessels, reached CNY17.2 billion, up 95.5 per cent.

The statement said the company took a tough line with shippers in freight rate talks and levied surcharges while increasing the number of vessels, lowering their speeds as well as reinforcing cooperation with the CKYH Alliance in the inland regions in Europe and America.

The company also said it optimised its cost structure and focused on the balance of box sizes and box types and "perfected the integrated sea and railroad transportation network for the inland markets".

As of June 30, Cosco Holdings operated 150 containerships with a total capacity of 597,030 TEU, an increase of 7.7 per cent year on year, or up 6.4 per cent compared its fleet at the end of 2009.

The company said it took delivery of 11 new container vessels with a total capacity of 69,627 TEU and as of June 30 had 43 container vessels on order with a capacity of 345,206 TEU.

Its dry bulk business reached 140 million tons in the first half, up 8.2 per cent year on year, generating CNY16.75 billion in revenue, up 51 per cent year on year.

"The group aims to be the most competitive logistics services provider in China. In 1H 2010, revenue of the logistics business was CNY6.77 billion, an increase of 16 per cent year on year," said the statement.

The group's container terminals handled 22.43 million TEU, up 18.7 per cent year on year. The group aimed to strengthen the terminal business and actively to increase its controlling stake in terminals. It also expanded its terminal network, diversified its terminal investment portfolio and increased its enterprise value, "further consolidating its leading position in the global market".

In container leasing, the group continued to be the No 2 player in the world, accounting for 14 per cent of global market share. The average leasing rate in the first half was higher than the industry average, said the statement.
(Source:www.schednet.com)