Cosco Shipping Energy Transportation (CSET) has vowed to establish the first VLCC pool in China after its board approved a proposal for a management entity in Hong Kong.

In an exchange filing, the Shanghai and Hong Kong-listed tanker arm of state conglomerate China Cosco Shipping said the pool entity would be set up by its subsidiary China Shipping Development (Hong Kong) to focus on charter and transport businesses.

According to the interim report of CSET, the company will be “working on the establishment of the first VLCC pool in China, facilitating the construction of the pool organisational structure, operating rules and information systems, and conducting internal simulations before introducing the pool to the market” during the second half of 2019.