A new shipping company, China COSCO Shipping Corp, announced opening in the Lujiazui area of China (Shanghai) Pilot Free Trade Zone of the Pudong New District on Feb 18, Pudong Times reported, noting that it is a merger of the China Ocean Shipping Group and China Shipping Group, the country's two biggest shippers.

The merger is a part of the central government's effort to consolidate State-owned undertakings to better leverage their advantages and resources globally.

The new entity will employ 118,000 staff and manage 46 container ports and 190 berths around the world, making it the world's largest oil tanker fleet and the 4th largest container fleet, with an estimated annual throughput capacity of 90 million 20-foot equivalent units (TEUs).

Its chairman, Xu Lirong, says they will handle logistics, industrial equipment manufacturing, financial services, investment, and operations related to China's "Internet Plus" program as well as various forms of transportation, warehousing, shipping insurance, offshore engineering, and hotel management.

This giant operation is expected to help increase Pudong's global reach in shipping, which can in turn make Shanghai an international shipping center. Pudong already has at least 6,000 shipping-related companies.