Minsheng Shipping Co., Ltd., is a subsidiary of Minsheng Industrial (Group) Co., Ltd. (the Group or the company). The Group has more than 30 subsidiaries and branches in major cities and ports in coastal China and alongside the Yangtze River. The shareholders of Minsheng are the Group, Minsheng Int’l Container Transport Co., Ltd and Minsheng Int’l Cargo Agent Co., Ltd. The key shareholders of the Group are Mr. Lu Guoji and Mr. Lu Xiaozhong.

The total project cost is estimated to be the RMB equivalent of $36.7 million. The proposed IFC investment is an A loan of up to $22.0 million.

20.75 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.75
Equity	5.0

* These investment figures are indicative

Minsheng is located in Chongqing Municipality and it serves the river shipping market along the Yangtze River. The Yangtze river corridor is well established as the principal artery linking the interior of China with the coast. With Shanghai, China’s biggest port located at one end of the river and Chongqing, one of the country’s biggest and fastest growing cities, located towards the uppermost navigable reaches, water transport along the Yangtze can service large cargo volumes (at low cost and limited pollution) and play an increasing role in the development of the Western economy. In all, the Yangtze river has more than 2,800 km of navigable channel and well over a dozen ports that are capable of handling containers.

By supporting private shipping services, the project seeks to improve efficiencies in the shipping industry in China and facilitate growth in trade following China’s accession to the WTO. Also, by supporting trade to and from inland ports along the Yangtze river, IFC will contribute to the development of a competitive and efficient regional economy in Western China. In addition to providing financing, IFC will add value based on its experience in environmental and social practices. IFC’s role in the project is highlighted below: - Through this project, IFC will support a private shipping company in a sector which is dominated by larger state-owned enterprises. - Due to the long-term nature of the project's assets, it is critical to secure stable long-term funding which is difficult to obtain in the local market. IFC's long-term loan will help meet this requirement. - IFC’s involvement in the project will enhance the ability of Minsheng to expand its fleet capacity, improve its efficiency, enhance its corporate governance procedures and upgrade quality of services delivered to customers, many of whom are located in China’s interior.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental and social information submitted by the project sponsor and a consultant to IFC. The following potential environment, health and safety and social impacts of the projects were analyzed: conformance with international and PRC standards and requirements for river shipping operations, design standards for new vessels, environmental performance of operation and maintenance of the vessels, dangerous cargo handling practices, shipboard waste handling and disposal, and occupational health, safety and training programs.
Location of environmental documents in locally affected community
Minsheng Shipping Co. Minsheng Building, 83 Xinhua Road, Chongqing 400011, China