COSCO sells stakes in Shanghai Eastern Logistics

China Ocean Shipping (Group) Co, known as COSCO, and China Cargo Airlines Ltd plan to sell a combined 30.7 percent of stock rights in Shanghai Eastern Logistics Co Ltd, according to two statements filed with the Shanghai United Assets and Equity Exchange. The move marks COSCO's withdrawal from the joint venture, the China Securities Journal reported on Monday.

Only some major domestic airlines — such as Air China Ltd and China Southern Airlines Co Ltd — are allowed to buy the stock rights now being sold in Shanghai Eastern Logistics. China Eastern Airlines gave up its preemptive rights.

Shanghai Eastern Logistics — a company owned by China Eastern Airlines, COSCO and China Cargo Airlines — was founded in August 2004.

The logistics company, which has total assets of 1.2 billion yuan ($190.72 million), is based in the Shanghai Pudong International Airport and has cargo facilities in the Pudong and Hongqiao cargo terminals.