Sinotrans president Zhang Jianwei told a conference held in Hong Kong that Sinotrans is aiming to become one of the top three express providers in mainland China by 2010, Xinhua reported.

But reviewing first half results, Mr Zhang admitted a profit loss in the express sector because Sinotrans had incurred extra costs of opening 200 new offices while having to transfer control of joint venture operations to its former partner UPS.

Sinotrans interim results showed during the first half of this year, its profit attributable to shareholders went 23 per cent up year on year to CNY395 million (US$52 million) from CNY321 million while revenue rose to CNY17.7 billion from CNY14.8 billion.

Mr Zhang said Sinotrans plans 450 branches across the country. Though unsure when domestic express business would start to make profit, he expected to break by 2010.

He said the company will focus on short sea shipping in the future and reduce capacity on long-haul shipping or consider a strategic co-operation on this sector.

Zhao Huxiang, chairman of parent company Sinotrans Group, said the company's domestic express business keeps doubling, and he believes the global express sector will grow 20 per cent or more in the next few years.

Mr Zhao added that the shipping sector can turn loss into profit in three to five years.