Power giant China Huaneng Group plans to invest Rmb500m in setting up a shipping company that will operate on the middle and lower reaches of the Yangtze River, reported Caijing. Shanghai Rui Ning Shipping is set to operate two cargo ships with a combined capacity of 65,000 tons.
An industry expert from Citic Securities said that since ship prices have fallen more than 20 per cent due to the global economic downturn, the risks associated with forming a new shipping company had lowered. It was for this reason that Huaneng decided to set up a small company to test the water.