(Yicai Global) Dec. 6 -- China has created the country’s only state-owned enterprise in integrated logistics, following cabinet approval.

China Logistics was formed today by merging China Railway Material Group and the four logistics businesses of China Chengtong Holdings Group.

The State-owned Assets Supervision and Administration Commission and Beijing-based Chengtong each own 38.91 percent of the new company. China Eastern Airlines has a 10 percent stake, China COSCO Shipping 7.3 percent, and China Merchants Group 4.9 percent.

China Railway Material and Chengtong have laid a firm foundation for the new firm in terms of storage, logistics and industrial resources, Li Jin, principal researcher at China Entrepreneur Research Center, told Yicai Global. The integration will enable collaboration and improve resource allocation, Li added.

China Logistics’ network spans China and five continents, and covers an area of 24.26 million square meters, including 4.95 million sqm of warehousing and 3.56 million sqm of yarding. It also has 120 dedicated railroad lines and 42 futures delivery warehouses, with nearly three million fully-equipped road freight vehicles.

As a result of a series of corporate consolidations, the number of state-owned enterprises in China has fallen from 196 in 2003 to 97 now.

Editor: Peter Thomas