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23 - The internationalisation of COSCO and its investment in New Zealand

Published online by Cambridge University Press:  05 August 2013

By
Yan Shi ,
Christina Stringer  and
Gloria Lan Ge
Edited by
Prem Ramburuth ,
Christina Stringer  and
Manuel Serapio
Prem Ramburuth
Affiliation:
University of New South Wales, Sydney
Christina Stringer
Affiliation:
University of Auckland
Manuel Serapio
Affiliation:
University of Colorado, Denver
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Summary

The China Ocean Shipping (Group) Company (COSCO) is one of the world’s largest shipping companies and the fifth largest container carrier (Alphaliner 2013). In 2012, COSCO ranked 384th on the Fortune Global 500 company listing, with US$28.7 billion in annual revenue (CNN Money 2012). COSCO was one of the first major Chinese companies to invest in New Zealand, and is regarded as a successful Chinese investment pioneer in New Zealand. This has major implications for other Chinese companies considering investing in New Zealand. Since the free-trade agreement (FTA) between New Zealand and China came into effect in 2008, there has been significant growth in trade. Exports from New Zealand to China have increased by 152 per cent, and today China is New Zealand’s second largest bilateral trading partner. Recognising the economic importance of China to New Zealand, in 2012 the New Zealand government announced priority goals of doubling trade between the two countries by 2015, as well as increasing bilateral investment (NZTE & MFAT 2012).

COSCO’s development

COSCO owns or controls over a thousand companies globally, with shipping and logistics being the company’s two main business activities. In 2012, COSCO operated over 800 modern merchant vessels with a capacity of 50 million deadweight tonnes (DWT). In addition to shipping and logistics services, COSCO has expanded its global value chain to include ship-repairing and port-management services. From a small shipping company to a key operator in the global shipping market, COSCO’s development can be divided into four distinctive stages:

Type
Chapter
Information
Dynamics of International Business: Asia-Pacific Business Cases , pp. 225 - 235
Publisher: Cambridge University Press
Print publication year: 2013

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References

Alphaliner 2013, ‘Top 100 Operated Fleets’, viewed 3 January 2013, <>.
Business Monitor 2009, ‘Company profile – China Ocean Shipping (Group) Company (COSCO), viewed 12 January 2010, <>.
China Statistical Yearbook 2012, viewed 3 January 2013, <> (In Chinese).
CNN Money 2012, ‘Global 500 companies’, viewed 10 December 2012, <>.
COSCO Group 2008, Sustainable Development Report 2008, viewed 10 September 2009, <>.
COSCO Group 2010, Sustainable Development Report 2010, viewed 25 April 2012, <>.
COSCO Group 2011, ‘Part II: General information of COSCO Group’, viewed 20 February 2013, <>.
Groser, T 2011, ‘China FTA delivers economic benefits’, viewed 23 February 2013, <>.
Ports of Auckland 2008, Interconnect, December, viewed 23 February 2011, <>.
New Zealand Herald 2008, ‘COSCO looks forward to good year’,19 February, viewed 23 February 2011, <>.
New Zealand Trade and Enterprise (NZTE) & Ministry of Foreign Affairs and Trade (MFAT) 2012, Opening doors to China: New Zealand’s 2015 vision, viewed 27 December 2012, <>.
Shipping Online n.d., ‘CKYH join environmentalists as the Green Alliance’, viewed 4 January 2013, <>.
Statistics New Zealand 2012, website, viewed 20 February 2013, <>.
Wei, J 2008, ‘Globalization plays a vital function in COSCO development’, Viewed 22 February 2012, <> (translated from Chinese).
Wei, J 2010, ‘Promoting development by innovation to win the future of COSCO’, viewed 28 February 2012, <> (translated from Chinese).

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