Sinotrans to store, ship oil for Sinochem
China's Sinotrans Group Corp. said it will begin providing global oil shipping and logistics services to Sinochem Corp.
LOS ANGELES, May 1 -- China's Sinotrans Group Corp. said it will begin providing global oil shipping and logistics services to Sinochem Corp.
Under an agreement signed Apr. 18, Sinotrans said it will provide Sinochem with oil transportation by sea, air, rail, and road as well as storage services, all aimed at increasing efficiency and lowering costs.
The Sinotrans statement, which did not stipulate the amounts the firm will transport, follows an Apr. 17 oil products shipping contract between China National Petroleum Corp. and Nanjing Oil Shipping Group, a subsidiary of China Chang Jiang National Shipping Group.
Under that contract, Nanjing will transport 600,000 tonnes of oil products in 2007, using 30,000-40,000 dwt tankers. Nanjing currently has nine product tankers and will increase its capacity through a further 24 vessels to be constructed by 2010.
The transport agreements are consistent with Chinese government policy, which promotes use of domestic shipping firms to curb foreign currency outlays and to assume a tighter grip of the country's energy supply chain.
Contact Eric Watkins at email@example.com.