CHINA: Sinotrans, Korean Air to launch JV

Shanghai-listed Sinotrans Air Transportation Development announced recently that it plans to set up a joint venture with Korean Air, two other South Korean partners and the local Dongli Economic Investment Development Company to construct and operate an airfreight yard at Tianjin Airport. The joint venture will have a registered capital of US$14.9 million, with 20 […]


Shanghai-listed Sinotrans Air Transportation Development announced recently that it plans to set up a joint venture with Korean Air, two other South Korean partners and the local Dongli Economic Investment Development Company to construct and operate an airfreight yard at Tianjin Airport.

The joint venture will have a registered capital of US$14.9 million, with 20 per cent from Sinotrans Development, 47 per cent from Korean Air, 8 per cent from Dongli and 25 per cent from the other two Korean investors. Total investment in the joint venture will be nearly US$43.9 million. Korean Air has effective control of the joint venture despite having just a minority stake. It said it would exercise“management rights” and would assume“controlling powers” by appointing the joint venture’s two most important executives,the chief executive and chief financial officers.

Korean Air also was expected to supply most of the pilots flying the new Chinese cargo routes.

China’s logistics market is estimated to be growing at a rate of nearly 30 per cent each year and expected to continue expanding rapidly through 2020.