DSIC Signs a Strategic LOI for Livestock Carrier

The Sino-Australia Livestock Trade Strategy Symposium was held in Beijing on May 31, where there gathered the industrial elites and representatives from over 20 units, such as Australian prairies, China Animal Husbandry Group, China Trade Shipping Co., Ltd., CSIC, Shanghai Changhang Shipping Co., Ltd.( Changhang Shipping), and Dalian Hesheng Holding Group( Hesheng Group), etc. DSIC leaders Liu Zheng and Yin Xuelin presented the symposium.

At the conference, an objective analysis and explicit explanation has been made on the current livestock trade and Australian beef cattle market status, and how to build a complete industry chain of Australian cattle laboring, fostering, trading, shipping, inspecting, butchering and marketing under new terrain as well, where DSIC Chairman and Party Secretary Liu Zheng made a speech on how to build the first class product of ship for customers and structure the livestock supply system jointly, and also signed a Strategic Letter of Intent for the livestock carrier with Changhang Shipping and Hesheng Group on behalf of DSIC.

In recent years, along with the further implementation of Sino-Australia FTA (Free Trade Agreement) and conclusion of Agreement on the Australian Beef Cattle Import, the Australian beef cattle will have taken an important share in the domestic market in a rather long period afterwards. There are only approximately 35 specialized ships engaged in carriage of Australian livestock globally, among which there are over 20 ones to be controlled by a few foreign ship owners in minority, even for the rest, Chinese people can hardly be seen to set foot in. Changhang Shipping and Hesheng Group have worked together to convert 2 livestock carriers each with 6400 �O pen area in DSIC Shipping, scheduled for delivery in this September and December respectively while intending to add 2 more conversion projects of livestock carriers each with 10000 �O pen area. Furthermore, they are planning to build 2 livestock carriers each with 16000 �O pen area so as to achieve an annual shipping capacity of 300000 beef cattle.

The symposium is intended to explore the Sino-Australian livestock trade pattern and solve the problems on proper selection of bovine origin, ocean shipping, and butchering and processing under the strict inspection & quarantine procedures. The signing of this strategic LOI is of great significance, which has provided DSIC with the favorable conditions in taking full advantage and getting firm hold of conversion and newbuilding in the livestock carrier market under the new normal of shipbuilding economy, and also vigorously propped up the cooperative enterprises to build up a fleet of livestock carriers with the highest operation efficiency, the optimal benefit of industrial chain and the most powerful market standing between China and Australia.