Free shipping industry is expected to relax foreign investment

It is reported that the shipping sector policy is expected to make a major breakthrough in the relaxation of foreign investment access. With the approval of the Shanghai Free Trade Pilot Zone, the implementation details of the Free Trade Zone have become the focus of the market.

It is learnt that the Shanghai Free Trade Zone opening measures reported proposals include the relaxation of the ratio of foreign-invested shares of Chinese-foreign joint ventures and Sino-foreign cooperative international shipping companies; the non-five-star vessels allowed to be owned or controlled by Chinese-funded companies shall first try foreign trade import and export containers first. Coastal squatting business between domestic coastal ports and Shanghai Port; allowing the establishment of wholly foreign-owned international ship management companies, etc.

"These measures were previously not open," said Yan Weigang, general manager of Shanghai Shenglong Shipping Co. It is understood that shipping containers in domestic coastal ports is a domestic trade business. Prior to this, foreign ships flying Panamanian flags and other flags were not allowed to engage in such operations, even if these ships were actually Chinese-owned companies.

Because, according to the “Regulations on the Administration of Foreign Investment in International Shipping Industry” promulgated in 2004, the establishment of a foreign-funded international ship transportation company needs to be established in the form of a Chinese-foreign joint venture or a Chinese-foreign cooperative enterprise, and the foreign investor’s contribution ratio must not exceed 49%. This means that even if the previous foreign investment reached the upper limit of 49%, it could not achieve absolute control of the company. In addition, due to qualification restrictions, foreign ships cannot carry out domestic coastal transportation operations. But now, the above restrictions are expected to be broken one by one.

“What surprises me most is to allow the establishment of wholly foreign-owned international ship management companies in the opening measures. This means that the shipping industry in the FTA will be further opened to foreign capital,” Yan Weigang said.

The Shanghai Port Group, which owns the terminal assets of Phase I, Phase II and Phase III of Yangshan Port, has recently become the darling of the capital market, and its share price has doubled within half a month. Zhang Xin, director of the company’s directorate, told reporters that from the perspective of Shanghai’s development of an international shipping center, the contents mentioned in the draft submitted for review have made breakthroughs and adjustments to some of the original restrictive policies, and overall it would be beneficial to Shanghai’s ports. development of.