NYK AND COSCO IN $6.5-MILLION CAR SHIPPING VENTURE

NYK AND COSCO IN $6.5-MILLION CAR SHIPPING VENTURE    Nippon Yusen Kaisha, the large Japanese shipping group, and COSCO Shipping Co., Ltd., a stockmarket-listed subsidiary of Chinese shipping major COSCO, have formed a car transport joint venture in China with a capital of $6.5 million to take advantage of a predicted boom in volumes.
   NYKCOS Car Carrier Co., Ltd., headquartered in Guangzhou, “aims to meet the fast-growing demand for car transport by China’s automobile industry,” NYK said.
   It will combine the skills of NYK, the world’s largest car-carrier operator, with the business network operated throughout China by COSCO.
   COSCO Shipping Co., Ltd. is a subsidiary of Guangzhou Ocean Shipping Co., one of the regional arms of the vast COSCO group.
   COSCO said that the NYKCOS Car Carrier joint venture “would realize its maximization of profits and shareholder’s returns and lay a solid foundation for the long-term cooperation between COSCO and NYK.”
   With its activities starting in January, the venture will initially operate three or four small-sized pure car carriers in China’s coastal shipping, between North and South China, and one small-sized pure car carrier with a hauling capacity of about 1,000 cars deployed in China’s near-sea international trade.
   Commenting on the international service, NYK said that this service will be gradually expanded “in conjunction with the growth of demand for the international transport of automobiles in China, which is expected to get into full swing from around 2004.”
   NYK said that the purpose of the Sino-Japanese venture is to participate in the fast-expanding transport of finished cars in China, and lay the groundwork for the transport business of exporting and importing cars.
   COSCO will own 51 percent of the joint venture, and will provide its chairman. NYK will own the remaining 49 percent, and appoint its vice chairman. An initial staff of about 15 will be increased in parallel with the expansion of business.
   The car transport joint venture between COSCO and NYK follows an agreement announced in April of a logistics cooperation agreement between the two groups. The logistics collaboration between COSCO and NYK will deal with logistics service in and outside China, including in Japan, and cover staff training and other business aspects in the logistics field.