China Shipping to enter South American market

China Shipping to enter South American market    Expansion-minded China Shipping Container Lines will enter the South American market for the first time in May, with a direct service connecting Asia and the East Coast of South America.
   The Shanghai-based carrier has signed a joint service agreement with CMA CGM and Maruba — two carriers already established in the trade — to operate a joint service connecting Asia, South Africa and the East Coast of South America, according to industry sources.
   The move into South America will be the latest step in the rapid expansion of the Chinese government-controlled shipping line. In 2004, China Shipping also entered the transatlantic with a westbound North Europe/U.S. service provided jointly with Norasia and Gold Star Line.
   Until now, China Shipping, founded in 1997, has focused mainly on building an east/west container service network, to which it has dedicated a growing fleet of containerships. China Shipping was one of the fastest-growing carriers in the transpacific in 2004. The Chinese carrier has also started two north/south services, from Asia to Australia and West Africa, respectively, in cooperation with other carriers. It also runs Chinese coastal services, its historical home market.
   But the Chinese carrier, now the world’s 10th-largest carrier in ship capacity, is increasingly following a policy of widening its network to become a global carrier. When it raised $1 billion from the Hong Kong stock market last year, China Shipping said it expected to double its fleet to about 434,000 TEUs by 2007.