Over the past decade, the maximum size of container ships has increased almost twofold. There’re even 21,000–22,000 TEU ships on order. Larger vessels save operational cost but require large port facilities involving high infrastructure investment costs. The Korean government is attempting to assist the shipping companies and port infrastructure development by working with state policy lender.
The South Korean government will carry out a research on the return on investment at ports through the investment in ultra-large container ships, including the impact that these ships will have on ports and terminals.
This move is the after-effect of merger of two of South Korea’s biggest shipping lines, Hyundai Merchant Marine (HMM) and Hanjin Shipping owing to financial constraints. The alliances of large companies drive up operational costs and capital expenditure, while placing more pressures on dockworkers to turnaround ships.
Source: Port Tech
