Freight forwarder Sinotrans could get a further injection of logistics-related assets from parent company Sinotrans and CSC by 2014 in a move that would shift all its logistics operations into the Hong Kong-listed subsidiary, reported the South China Morning Post.

Zhang Jianwei, executive director and president of H share Sinotrans, said Sinotrans had planned to inject a second batch of assets into the company before Sinotrans merged with CSC in March 2009.

The move was stopped by the State Council, pending a restructuring of the merged company, although Zhang said the proposal had been revived.

"The plan in two or three years is for Sinotrans Ltd to consolidate the logistics business from the entire group," he said, adding the move would contribute to the Hong Kong company's growth.

He did not detail the assets that could be injected.
Zhang said Sinotrans was also interested in acquiring logistics-related companies on the mainland and overseas. "But they will have to make sense with our core business. They will have to be profitable."

He said potential international targets would be smaller- or medium-sized logistics companies because taking over larger operations "would result in indigestion and that's not good".
In May, Sinotrans (HK) Logistics agreed to pay US$29.95 million for 35.3 per cent of InterBulk, a British company specialising in chemical and food logistics.

Following the acquisition, Sinotrans "will be integrating its international and domestic petrochemical logistics activities to build expertise in that field", Zhang said.