New Cosco subsidiary gives Chinese free-trade port a boost

Yangpu Port By Alison Koo 31 July 2026 Cosco Shipping is showing its support for the Hainan free-trade port by setting up a subsidiary on China’s southernmost island. Incorporated with capital of CNY300m ($44.4m), Hainan Cosco Shipping Container Shipping, will focus on vessel leasing, ownership, and operation. Cosco, which has already invested in Hainan’s Yangpu Port, has pledged to expand leasing as part of its wider strategic plans. The Chinese government has designated Hainan as the country’s premier free-trade port, with the aim of creating an international shipping and logistics centre. International shipping lines are being encouraged to open offices on Hainan Yangpu is connected to 59 domestic and international shipping routes and has reached 3m teu in annual container throughput. Last October, Cosco relaunched a Far East-South America West Coast service to include a Yangpu call. Previously, Yangpu’s connections were to the Chinese mainland and South-east Asia. Including Yangpu in a South America service was widely seen as enhancing the port’s status, especially when seafood such as tilapia from Hainan could be directly shipped to Peru and Chile. As a state-owned enterprise, Cosco Shipping is expected to both support, and benefit, from the promotion of the free-trade zone, which offers reduced corporate tax, zero or reduced tariffs on many imported equipment and materials, more liberal cross-border capital and shipping rules, and simplified customs procedures, especially for international trade and shipping. Hainan’s free-trade regulations are also expected to make it easier for companies to raise financing and carry out cross-border leasing. Currently, leveraging Yangpu’s deepwater berths, Cosco is steadily advancing port expansion projects, successively commissioning the first phase of the port expansion. After the second phase of the port expansion, Yangpu’s annual handling capacity will steadily reach 5m teu, enabling it to handle larger box ships.