South Korea to Assist in 200 Ship Orders

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The South Korean government has decided to assist its local shipping firms in placing orders for 200 ships by 2020, including 140 bulk carriers and 60 containerships.

Increase its fleets

On April 5, the South Korean government has expressed its plans to expand its shipping and shipbuilding industry based on a five-year program announced by Minister of Oceans and Fisheries Kim Young-choon.

Mr.Young-choon said, “The government plans to help local shipping companies through a ship purchase assistance program as part of efforts to lift the industry out of its slump. Under the plan, the government will help local shipping firms place orders for 200 ships by 2020, including 140 bulk carriers and 60 containerships, using investment and guarantees from the Korea Ocean Business Corp. that are set to be launched in July”.

Comprehensive measures in place

This move comes in the back drop of Hanjin Shipping where the sales of South Korea’s shipping industry were cut by over 10 trillion won, and the tonnage of the deep sea containers has been cut in half. The government putforth comprehensive measures to support the shipping and shipbuilding industries grappling with a protracted slump, intense competition and environmental regulations.

The vessel purchase plan is expected to raise Hyundai Merchant Marine’s (HMM) shipping capacity to 1 million TEUs by 2020 and includes plans to build ultra large container vessels, Yonhap said.

HMM CEO C.K. Yoo told shareholders, “Equipped with eco-friendly, mega smart containerships in the near future will create great cost-competitiveness and strengthen its sales power.”

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Source: Yonhap News