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Two joint-venture companies–Shaanxi Coal & Chongqing Port Logistics Co Ltd and Chongqing Port & Shaanxi Coal E-Commerce Co Ltd–were unveiled at Chongqing's Wudu Hotel on June 28.

The two companies were co-funded by the Chongqing Port Logistics Group and Shaanxi Coal and Chemical Industry Group with an investment of 300 million yuan ($44.2 million) to build the western Chinese coal trade market and Chongqing's commodities market.

Chongqing will re-evaluate circulation channels and orders for staple commodities, such as steel, coal and iron ore in the western regions of China. A multi-level commodities trading system will also be designed to cut logistics cost.

Sun Wanfa, president of the Chongqing Port Logistics Group, said that Chongqing is equipped to build its commodities market, as the city has become a logistics transport hub and logistics cost for commodities from China's northwestern regions to Chongqing will be cut by one-third when the Lanzhou-Chongqing Railway becomes operational.

At present, Chongqing and the middle and lower reaches of Yangtze River region have a coal demand of about eight million tons. The commodities market will help Chongqing to attract logistics businesses and investments in the western regions and build the center of Yangtze River freight.

Shaanxi Coal & Chongqing Port Logistics Co Ltd and Chongqing Port & Shaanxi Coal E-Commerce Co Ltd are unveiled at Chongqing's Wudu Hotel on June 28. [Photo/liangjiang.gov.cn]

Edited by Zachary Dye