China Shipping Development announced at HKEx that, with the aim to improve its professional management, rationalize the internal management, and enhance the efficiency, the board agreed to set up two wholly-owned subsidiaries to run dry bulk cargo and oil products shipping independently, and it will inject the original dry bulk and oil-related businesses and assets into two wholly-owned subsidiaries.

The first step is to complete the integration of the dry bulk assets. In the announcement, it is said that the integration of the dry bulk assets will be carried out as follow. First, it plans to set up a wholly-owned subsidiary "China Shipping Bulk Shipping Co., Ltd." in Nansha, Guangzhou. The company will become the only operating platform of dry bulk cargo business in China Shipping Group. After the establishment, the original staff, organization and management system of China Shipping Development in Guangzhou will be integrated into this company. Meanwhile, it will set up a wholly-owned subsidiary "China Shipping Bulk Shipping Shanghai Co., Ltd." In Shanghai.

Later, China Shipping Development will inject the equity of its dry bulk cargo joint venture and the dry bulk assets overseas into the newly established "China Shipping Bulk Shipping Co., Ltd.".

China Shipping Development is China\'s largest oil transportation enterprise, and shares a dominant position in the coastal coal transportation. The company\'s 2011 semi-annual report showed that, the oil transportation business achieved operating income of 3.294 billion RMB in the first half of the year, amounting to more than 50% of its total revenue. The coal transport achieved operating income of 1.916 billion RMB, and the iron ore and other dry bulk transport reached a total of 989 million RMB.