A satellite made by The Shanghai Academy of Spaceflight Technology

The Shanghai Academy of Spaceflight Technology plans to break into the commercial market with the launch of a satellite for tracking shipping in the first half of next year.

The academy's previous business has relied on the public sector and the military. But this satellite, being put into orbit on a Long March 4C rocket, is being funded by Beijing-based company China Head Aerospace Technology Company.

The two parties signed a strategic agreement during an aviation exhibition yesterday in Zhuhai, Guangdong Province.

The satellite will be able to code about 2 million messages from 60,000 ships a day.

It is also the first of a series of Automatic Identification System commercial satellites, called Delicacy, developed by the academy. AIS satellites supplement standard marine radar to provide unique identification, position, course, and speed information of vessels to help in tracking and avoiding collisions.

The series is to provide a cost-effective and short development life-cycle solution for commercial satellites.

The academy's commercial shift is in response to the State Council's moves to encourage private capital to invest in civil space infrastructure.