A guideline on promoting the development of the shipping industry is being drafted by the National Development and Reform Commission (NDRC) and the Ministry of Transport (MOT) and will be submitted to the State Council for approval later this year, sources said.

The industry has posted huge losses for two consecutive years.

“The draft co-headed by the NDRC and the MOT looks to provide long-term solutions, including restructuring shipping capacity, setting up a special capital fund for phasing out old ships, cutting tax for shipping companies and their employees etc,” Song Dexing, director of water transport department under the Ministry of Transport was quoted as saying by the China Business News on Wednesday.

For example, the MOT will establish a team to study and analyze taxation of shipping companies and their employees before urging related departments to rollout tax cuts for them, added Song.