Hainan Strait Shipping reports business loss due to operation rule changes
Hainan Strait Shipping, one of the major passenger roro operators in the South China Sea, announced yesterday that the company expects a 14% decrease in net profit in 2013 as the operating mode in its business area has been changed
The Ministry of Transport has introduced a new policy to control all the roro capacities in the Qiongzhou Strait. The ministry has asked for equal usage rates of every roro vessel operating in the region which has decreased the usage rate of the company’s vessels.
Meanwhile, the company said new tax policies have increased its tax expenditure by RMB1m monthly.
Hainan Strait Shipping said it is trying to lower its operating risk brought by the new roro policy by expanding to other business areas.
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