Page 51 - Practical Design Ships and Floating Structures

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as a global operator and gradually transiting itself to an international logistics provider. To serve this
goal, the group will speed up its efforts to make out and conduct the strategy of modem logistics plan.
Followed by the adjustment of structure, COSCO Logistics Group is about to set up with the support
of transnational supply chain management companies, advanced information technology as well as
global logistics B2B service platform, being designed to provide with products or services capable of
resolving problems across the board and rapidly pushing forward the development of logistics business
in the end.

(3) To optimize the land-based activity
COSCO will continue to adjust its business structure, targeting land-based activity as one of its
important core of profits since this sector is now on the way of transiting from diversified pattern to a
more concentrated one. Priority will be given to real estate, industry, finance and those which are more
likely to gain heavy returns in profits. To set land-based business as example, COSCO will pay special
attention to selecting project which should be independent or reverse to the fluctuation tendency of
shipping industry with high potential of growth as well whenever we intend to get into a new game.
These areas including information, environmental protection, energy-saving, new materials etc. are
believed to have great complementary to ocean shipping business. In the short run, the expansion of
information network turns out to be the main task in line with the requirement of company's strategic
plan. In the course of running a new business, COSCO will gradually establish a set of systems which
can assess risk of an investment project and help create a new profit channel.

(4) To reinforce the construction of network
The essence of the times of knowledge economy is a sort of the economy based on network. As a
result, to reinforce the construction of network is sure to be not only the radical choice for COSCO
positively facing up to the times of knowledge economy, but also the key to upgrading the presence as
an international logistics provider. On the other hand, the task mentioned above is also the pressing
matter at the moment in a move to carry out and push forward the strategy of technology innovation.
COSCO is planning to optimize the layout of the current network, intensify the construction of
COSCO Network on the internet basis, implement the integration of established network, aiming at
building up a comprehensive network system capable of serving people both at home and aboard to
take advantage of services for better distributing shipping and logistics resource worldwide.
Looking ahead to the new century, COSCO will continue to abide by the rules and regulations issued
by International Maritime Organization (IMO) and SOLAS concerning the safety sailing and
environment protection drive at sea around the world. In fact, some shipping arms of COSCO Group
have already successllly achieved the certificates of International Safety Management Codes (ISM)
and IS09002 for quality service assurance, becoming one of the professional shipping companies with
high levels of management.