New player for China-Australia trade?

The liner trades industry is rife with rumours that the Li Kelin-led Grand China Logistics (GCL) is planning a foray into the local market, using five CV1100-type 19-knot containerships on a rotation of Shanghai, Ningbo, Shenzhen, Hong Kong, Melbourne, Sydney, Brisbane (to be confirmed) and possibly beginning as soon as July.

The news comes at a delicate time for existing carriers, three groups of which (AAUS, NEAX and AANA) have just rolled over capacity-reduction arrangements implemented earlier this year.

The decisions – AAUS to maintain its one-string operation and NEAX and AANA to continue the temporary merger of their services – will take rationalisation through to mid-August when it is hoped peak season volumes will begin to kick in.

According to the GCL website, the Shanghai-registered group aims to provide an integrated logistics provider, including door-to-door services.

GCL was last year touted as the buyer of the troubled Shandong Yantai International Marine Services – better known as SYMS – introduced to the China-Australia trade by CP Ships in mid 2005 but withdrawn in the last quarter of 2007 after encountering financial difficulties.

GCL did not proceed with the SYMS purchase, instead simply taking over some of the company’s routes and chartered vessels.

Full report in Lloyd's List DCN's print edition this Thursday.

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