BEIJING has extended by two years a subsidy programme that encourages shipping companies to scrap old vessels in a bid to support reduce overcapacity plaguing the market.
Subsidies, started in 2013 and due to end this year, give shipping lines US$241.67 per gross ton to replace old vessels with newer ones.
They helped state-backed Cosco group to post a higher 2014 profit instead of a loss that would have been recorded had it not been for the subsidies.
"The shipbuilding and shipping industries are facing a very difficult downturn, the scheme's extension reflects their needs," said Zhang Shogun, executive vice-chairman of the Chinese Shipowners' Association.
The subsidy extension was announced in a joint statement by the Ministry of Transport, the Ministry of Finance and the National Development and Reform Commission (NDRC).
SHIP RECYCLING
25 June 2015 - 21:17
China extends scrapping subsidies through 2017 to cut tonnnage
BEIJING has extended by two years a subsidy programme that encourages shipping companies to scrap old vessels in a bid to support reduce overcapacity plaguing the market.
SHIP RECYCLING
25 June 2015 - 21:17
China extends scrapping subsidies through 2017 to cut tonnnage
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