CHINA Shipping Group (CSG), the nation's second-largest carrier, has announced that Xu Lirong is the new chairman following the retirement of 63-year-old Li Shaode, who has gone beyond the official 60-year-old retirement age for top executives at state-owned companies.

The move, initiated by the State Council and the Communist Party, had been anticipated for some time after Mr Xu moved from China Ocean Shipping to become the state giant's director and president in 2011, in effect making him second to Mr Li.

"Due to age, Li Shaode will no longer be CSG's chairman and party secretary; Xu Lirong will be CSG's chairman and party secretary," said a brief statement by the Communist Party's Central Organisation Department posted on the CSG website.

At the same time, it was announced that vice-president Zhang Guofa had been appointed director and president of the shipping company.

As per general practice, Mr Xu is expected to replace Mr Li as chairman of China Shipping Development and China Shipping Container Lines, the two CSG units listed in Shanghai and Hong Kong, when they hold the next board meetings, reported London's Lloyd's List.

Before joining CSG as director and president, Mr Xu served various senior positions within the Cosco group of companies. Those included general manager of Cosco Container Lines, deputy general manager of China Cosco Holding, and vice-president and party committee member of Cosco Group.

The 56-year-old began his career at sea in 1975 and later became a sea captain before working his way up in China's largest shipping group. He holds a master's degree in business administration from the Shanghai Maritime University and the Maastricht School of Management in the Netherlands.