en.Wedoany.com Reported - Cosco Shipping has established a container shipping subsidiary in Hainan to support the construction of the Hainan free-trade port.

The newly established Hainan Cosco Shipping Container Shipping company has a registered capital of 300 million yuan (US$44.4 million), with operations focused on ship leasing, ship ownership, and vessel operations.

As part of a broader strategic plan, Cosco Shipping has invested in Hainan's Yangpu Port and has committed to expanding its leasing business.

The Chinese government has designated Hainan as the country's most important free-trade port, aiming to develop it into an international shipping and logistics hub, while encouraging international shipping companies to establish offices in Hainan.

Yangpu Port is currently connected to 59 domestic and international shipping routes, with an annual container throughput of 3 million TEUs. In October last year, Cosco Shipping reopened the Far East-South America West Coast service and included Yangpu Port as a port of call.

Previously, Yangpu Port's connections were primarily with mainland China and Southeast Asia. The inclusion of Yangpu in the South America route is widely seen as a move to elevate the port's status, allowing Hainan's tilapia and other seafood products to be shipped directly to Peru and Chile.

As a state-owned enterprise, Cosco Shipping is expected to both support and benefit from the promotion of the free-trade zone. The zone offers corporate income tax reductions, zero or reduced tariffs on many imported equipment and materials, more relaxed cross-border capital and shipping rules, and streamlined customs procedures, particularly for international trade and shipping.

Hainan's free-trade regulations are also expected to make it easier for companies to raise capital and conduct cross-border leasing.

Currently, Cosco Shipping is steadily advancing port expansion projects at Yangpu Port utilizing its deep-water berths, with the first phase of expansion gradually coming into operation. Upon completion of the second phase, Yangpu Port's annual throughput capacity will reach 5 million TEUs, enabling it to handle larger container vessels.