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The Country Aims to Enter the Top 8 Shipbuilders in the Global Maritime Sector, Generating Employment and Stimulating the Economy
The bankruptcy of Hanjin left the sector in turmoil and has led to a series of measures from the South Korean government to prevent the scenario from occurring with other companies in the country. Thus, a plan was announced that aims to order 200 ships in the next three years, intending to revitalize both the shipping and shipbuilding industries. The mega-order is part of the South Korean restructuring plan for its shipping and shipbuilding industries, led by the Minister of Oceans and Fisheries. It will consist of 140 bulk carriers and 60 container ships—among mega-ships with 20,000 and 14,000 TEUs.
“After the bankruptcy of Hanjin Shipping, the sales of the South Korean shipping industry suffered a drop of 10 trillion won, and the deep-sea container tonnage was reduced by half,” admits South Korean Minister of Oceans Kim Young-choon, adding: “We have prepared a comprehensive set of measures to support the maritime transport and shipbuilding industries, which are facing a prolonged recession, intense competition, and environmental regulations.”
New Units Will Propel HMM Up the Rankings
It should be noted that the largest South Korean container shipping company, Hyundai Merchant Marine Co. (HMM), currently has a fleet with a capacity of 340,000 TEUs (owned and chartered), making it the 12th largest operator in the world (counting ONE as a single operator). The Minister of Oceans admits that the deliveries of container ships for HMM will all be completed by 2020, raising the company’s capacity to about 1 million TEUs, which will place it in the global top 8.
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South Korea Also Wants to Revitalize the Shipbuilding Industry
The South Korean shipbuilding industry has also faced recent losses, and the local government aims to reverse the situation. In addition to these orders, the Minister of Oceans plans a series of mergers and partnerships among smaller shipyards to increase their competitiveness. It is also, on another note, looking for a new ‘owner’ for Daewoo Shipbuilding & Marine Engineering Co., which has recorded heavy losses recently.
Source: Cargo Magazine (Portugal)
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