A Qingdao-based player is hoping to fund its expansion programme with a planned listing for later this year.

Chinese container line Shandong International Transportation Corp (SITC) is set to embark on a fleet-expansion programme as part of a $500m initial public offering (IPO), sources close to the company say.

The Qingdao-based owner aims to position itself as one of Asia’s leading logistics players following the Hong Kong listing, which it hopes will take place before the end of the year.

As well as expanding its fleet, an insider tells TradeWinds that SITC will also use the cash to buy more containers, boost its land-based logistics capabilities and improve general finances.

"SITC believes that it shielded itself from the effects of the recession by concentrating on what it knows best — the Asian market," he said.

"It will not be looking at becoming more global. But it will enhance its position in China by improving its facilities at Qingdao, where it operates from a huge logistics park."

The source confirms Citigroup Inc, HSBC Holdings PLC and China International Capital Corp (CICC) are the underwriters for the planned IPO.

However, he adds that negotiations between the parties are still ongoing. "The underwriters and SITC have yet to decide what will go into the vehicle."

SITC currently owns 15 containerships, according to its website. However, it controls a further 40 through long-term charters. It operates 49 routes across China, Japan, South Korea and Southeast Asia.

It claims to be the biggest privately owned line operator in China. It was recently given a green light to set up an office in Taiwan by the Taipei government. This will enable SITC to operate independently in the country without relying on local agents.