China Shipping Development, the dry bulk and tanker arm of China Shipping (Group), and Shenergy, the Shanghai-based energy company, have launched a joint venture shipping company for transporting coal, Shanghai Daily reported.

The two companies will jointly invest Rmb240m in the venture, with China Shipping taking a 51 per cent stake.

The new company is expected to have a capacity of 100,000 dwt by the end of 2010 and to further expand in future. Within four years, it is expected to meet up to 80 per cent of the transport requirements of Shenergy’s power plants.