MS Shipping

completed

Based in Chongqing, the transportation hub in the south western region of China, Minsheng Shipping Co. Ltd. (Minsheng) is a wholly owned subsidiary of Minsheng Industrial Co. Ltd., a private transportation conglomerate. Minsheng is a leading ship operator along the Yangtze river, and also has a growing maritime container shipping business. Industrial development in western China is increasing the region's demand for container, roll on-roll off (Ro-Ro) and bulk shipping over the Yangtze river, one of the largest navigable rivers in the world. Minsheng operates nearly 100 vessels on the Yangtze River, comprised of tug boats, barges, container liners and Ro-Ro vessels. In 1993, Minsheng pioneered container liner services in the Yangtze River, and in 2000 the company acquired its first Ro-Ro vessel. By 2003, Minsheng accounted for 50% of total container volume and over 70% of total Ro-Ro vehicles shipped from Chongqing port. _x000B_Containers are the most cost efficient means of transporting goods on the Yangtze river and container volumes are expected to grow rapidly over the next few years. IFC's investment will support Minsheng's plans to optimize its river shipping ship structure, achieve efficiency gains and allow it to meet the growing demand for container and Ro-Ro vessels along the Yangtze river. _x000B_Minsheng also operates container lines from China to Japan and Taiwan, China. This maritime shipping operation, while part of Minsheng, is managed separately by the company's Shanghai Branch. This revised ERS is disclosed to clarify that the Yangtze River and maritime shipping operations are both part of Minsheng Shipping Co. Ltd., and are not separate subsidiaries of Minsheng Industrial Co. Ltd., as previously disclosed.