State Council issues guidelines to reform shipping industry

The State Council yesterday issued a set of guidelines on the development of the maritime and shipping industry in a landmark move that could lead to substantial reforms in the oversupplied and loss-making sector.

Named "guidelines on promoting a healthy development of the maritime industry", the 15-point policy is the first time the cabinet issued guidance dedicated to shipping, a sector long overlooked by policymakers.

"This is the first time that the State Council drew up policies for long-term, systematic development of the shipping industry, lifting the industry's status as of strategic importance for the country," He Jianzhong, vice-minister of transport, said in a news conference in Beijing.

The guidelines call for optimisation of the structure of mainland-owned fleets and urge increased competitiveness of mainland shipping companies, which only carry a quarter of total imports and exports, according to He.

Zhang Shouguo, vice chairman of China Shipowners' Association, said that he had been expecting the release of the policy for years.

"The release of the policy is a result of years of advocacy from the industry, and four to five years' of study by the Ministry of Transport," he said.