THE South Korean ferry operator, whose vessel capsized killing 300 people, said he was being squeezed by budget airline competition, so he increasingly relied on his cargo business.
Investigators have not determined the cause of the accident but media has reported that the ship was overloaded with cargo and it may have been poorly stowed, reported Reuters.
The ferry, with 476 passengers and crew and had a capacity for 956, sank on a regular run from Incheon to the holiday island of Jeju on April 16.
The Korean Register of Shipping, which tested and certified the vessel, said it should be loaded with no more than 1,070 tonnes of cargo and passengers combined.
It is not clear how much cargo it carried, but prosecutors say determining cargo weigh was a key part of their case. Financial records of the operator, Chonghaejin Marine Co, showed cargo had become an important part of revenue.
"Chonghaejin faced an uphill battle against budget carriers, which led to an shrinking number of ferry passengers," said Kim Gilsoo, a professor in shipping management at Korea Maritime University.
ACCIDENTS
05 May 2014 - 19:27
Doomed Korean ferry relied on cargo as budget air carriers took off
THE South Korean ferry operator, whose vessel capsized killing 300 people, said he was being squeezed by budget airline competition, so he increasingly relied on his cargo business.
ACCIDENTS
05 May 2014 - 19:27
Doomed Korean ferry relied on cargo as budget air carriers took off
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