I. Overview VI. Social performance  
II. Statements of the general manager VII. Economic performance  
III. Long-term prospects and strategies VIII. Report of third-party auditing advices  
IV. Framework and management system IX. A comparison of terms used in report and GRI guidelines  
V. Safety and environmental performances    

I. Overview

 

Company profile (as of Dec. 31, 2005)

Overview of the report

 
Brief introduction to COSCON

COSCO Container Lines Co., Ltd, abbreviated as COSCON (hereinafter referred to as the Company), is the key company specializing in container transport under COSCO Container Lines and was born from the merger of COSCO Container Division with COSCO Shanghai, registered in Pudong Shanghai on Nov. 11, 1997 when former Vice Premier of the State Council, Mr. Wu Bangguo, commenced the opening of the Company on January 27, 1998.
 
Mr. Wu Bangguo commenced the opening of the Company on January 27, 1998
Historical evolution
COSCO Shanghai Subsidiary was officially established on April 1, 1964 and was renamed Shanghai Ocean Shipping Company (abbreviated as Shanghai Shipping) on May 1, 1979. The headquarters of COSCO Container Division was established in Beijing in July 1993 when COSCO implemented the strategies of “centralized operation and decentralized management” on its container vessels. COSCO Container Lines Co., Ltd was born from the merger of COSCO Container Division with COSCO Shanghai in Shanghai , China on January 27, 1998. The business of liner service and logistics were restructured by COSCO in December 2001 and thus cargo shipment of COSCO was involved into COSCON, into which the overseas container business of COSCO was brought in November 2003. COSCON was listed on Hong Kong Exchanges as one of the most important assets of COCOS (HK.1919) on June 30, 2005.
 
The Company was listed on Hong Kong Exchanges as one of the most important assets of COCOS on June 30, 2005.

Changes of the fleet and carrying capacity

1964-1997: structure of the fleet expanded from 8 medium and small-sized general cargo carriers to 135 vessels of various types and functions, including 22 general cargo carriers, bulk ships and multi-purposed vessels in total, and 111 semi-TEU vessels, TEU vessels and Ro-Ro ships in total. The carrying capacity of the Company therefore increased from 62 thousand DWT to 3.456 million.

1978-2005: fleet of container transport expanded from seven semi-TEU vessels and three Ro-Ro ships to 124 modern container ships of various types. The TEU-carrying capacity therefore increased from 931 TEUs to 320 thousand.

So far, the Company possesses 124 container carriers with a carrying capacity of up to 320 thousand TEUs. The Company operates over 60 international shipping routes, connecting more than 100 harbors in the world and forming the east-to-west main lines centered on China , the U.S. and Europe, the secondary lines supported by Japan , Australia and South East Asia, and branch lines in China , South East Asia and Europe . More than 1,000 agencies and sub-branches have been established in main countries and regions across the world. A network of 280 sales and service has been set up in main cities of China . The Company fully adopts entrusted management over the vessels and signed the Agreement on Entrusted Management of Vessels and the Agreement on Leasing Seamen with vessel management agencies. It carries out regulation inspection and examination on the fulfillment of the Agreements, safety management, technological status, etc. and conducts annual assessment on the safety management performed by the vessel management agencies, so as to urge the trustors to comply with the international conventions, rules, regulations of the harbors and the state laws and to meet the requirements of management of the company.

The Company widely introduces the most advanced information technology into navigation, freight charge and management, successfully applying IRIS-2 which improves the network of major operation, standardization of information and OEM, realizing some e-commercial business such as cargo tracking online, e-shipping space and far-ranging print of B/L and providing our clients with characterized services of high added value. Always market-oriented and in favor of the satisfaction of the clients, our Company advocates the valuable ideas of Good Global Honesty, Prominent Achievements, Dedication to the Society and Realization of Mutual Benefit under the pressure of intensive market competition, and the Company has also built up excellent sea routes such as Sino-Australia, North-western Europe, etc. and brand name services such as One-stop Service, HDS Service, etc. by applying the latest international service ideas and methods to improve the service quality, which has won widely-spread reputations among consigners and all walks of life. Some services have been studied and copied by many competitors of the industry. For years, the Company has won such laurels as “Shipping Line of the Year”, “ Schedule Reliability awards”, “Best Star” and “Customer Service” decided on by institutes of authority home and abroad such as Freight Transport Buyer Asia (FTB Asia) and Cargonews Asia.

 

 
The Company was awarded by Freight Transport Buyer Asia (FTB Asia) as “ Best Shipping Line - China Trade ”.
 
COSCO Container Lines, October 2006