The China Navigation Company (CNCo) has announced that it will move its head office functions from Hong Kong to Singapore. The new head office will also accommodate specific functions for its liner trades subsidiary, Swire Shipping, currently located in Sydney, Australia.
The moves are expected to take place at the end of 2009 and are in response to changed market conditions and the need to consolidate overall management into a single location.
The number of staff directly impacted by this move will be slightly over 100, comprising approximately 40 in Hong Kong (with closure of the CNCo office there) and 60 in Sydney. Of these, around 20 will be offered positions in the new organisation in Singapore, while the remainder will be made redundant.
The new company in Singapore will employ approximately 120 people, including those currently working in the Swire Shipping and Swire Shipping Agencies office in that country. Staff in offices other than Hong Kong and Sydney will be generally unaffected by this change.
"In common with many other shipping companies, CNCo is facing serious challenges due to the current severe downturn in the shipping industry. At present, ships from many of our liner services call at Singapore where a large proportion of our business is also conducted. Therefore, it makes commercial sense to consolidate a number of functions that have previously been divided between Hong Kong and Sydney into Singapore," Mr. Richard Kendall, Managing Director of CNCo, said.
"With the shipping industry still in crisis, and with no clear prospects for sustained improvement, it has become imperative for us to drive efficiencies wherever possible in order to remain competitive.
"With this relocation, and the restructuring of our trades earlier in the year, CNCo … are optimistic about our long term prospects," Mr. Kendall added.
