Chinese shipping conglomerates China Shipping Group (CSG) and China Merchants Group signed a strategic cooperation deal on port development, financing and shipping services on Wednesday, November 12th.

The move comes as the Chinese Government encourages predominantly state-owned shipping companies to join forces in recovering the sluggish industry.

Under the agreement, the companies plan to work together on reforms and innovation so as to boost their competitiveness.

According to CSG, the two companies have a good working relationship and deep friendship.

The agreement is expected to serve as a new starting point, in the “long-term, mutual beneficiary cooperation and joint development” CSG said.