A. General introduction
II. Major subsidiaries and joint ventures
  1. Shipping industry
 
QINGDAO OCEAN SHIPPING COMPANY
Nature of company:
Investment proportion:
Staff:
Core business revenue:
Total assets:
state-owned enterprise
100%
4204employees
2.68 billion yuan
2.39 billion yuan

1.Core businesses:
international sea dry bulk cargo transportation

2.Capacity of products and services:
The company has 27 large Handysize, Panamax and Capesize vessels with 2.214 million tons of total carrying capacity. Playing an important role in COSCO’s dry bulk cargo transportation, the company has a command carrying capacity of 40 vessels/three million tons.

The company has been economical in fuel use since its establishment over 20 years ago and has decreased 18% of fuel use ratio, saved over 600 thousand tons of oil as targeted, and over 130,000 tons of oil year over year, making great contributions to the improvement of economic efficiency. In 1988, the company was awarded the Model Enterprise for Energy Saving in both Qingdao City and Shandong Province, and the National Grade-One Enterprise for Energy Saving by the Ministry of Communication. In 1991 the company was honored Model Enterprise for Energy Saving in Communication System by the Ministry of Communication, and National Advanced Enterprise for Energy Saving by the National Economy Committee & the National Planning Committee. In 1995 the company was rated as National Advanced Enterprise for Energy Saving in Eighth Five-Year Plan. In 2004, the company was awarded the National Excellent Quality Management Team by China Quality Association, All China Federation of Trade Unions, China Communist Youth League and China Association For Science and Technology, for the results of the energy saving technology improvement project titled Enhancing Ship Heavy-Quality Fuel Management and Technology Processing, Decreasing Fuel Residue. In 2005 the company was granted the 6th National Advanced Unit for Equipment Management and National Sample Enterprise for Energy Saving. Concentrating on the shipping industry, the company runs shipping business for large dry bulk cargo in the international dry bulk cargo sea shipping market. With powerful client development capability, the company has established long-term partnership with large clients at home and abroad and occupied certain market share in the iron ore shipping business on the routes of China-Australia and Far East - Brazil.

COSCO Group, October 2006