Reklam
Reklam
Reklam
Reklam
Reklam
Reklam
Reklam

Korea EximBank to Form "Eco-ship Fund" for Shipping Industry

Korea EximBank will create an "Eco-ship Fund" worth 1 trillion won as a way to support the domestic shipping industry in their ship commissioning. Under the scheme, the state-run bank will put up 25 percent of the fund while institutional investors such as pension funds or insurance companies chipping in the remaining 75 percent to purchase a ship for lease to shipping companies. 

Korea EximBank to Form "Eco-ship Fund" for Shipping Industry
22 July 2014 - 10:38

Korea EximBank to Form "Eco-ship Fund" for Shipping Industry
Korea EximBank will create an "Eco-ship Fund" worth 1 trillion won as a way to support the domestic shipping industry in their ship commissioning. Under the scheme, the state-run bank will put up 25 percent of the fund while institutional investors such as pension funds or insurance companies chipping in the remaining 75 percent to purchase a ship for lease to shipping companies. After a certain period of time has elapsed, they collect part of the investment by selling the used ship.
According to shipping industry sources on July 20, Korea EximBank has recently prepared the plan and will begin the scheme by November this year after putting out public notices in September.
Comparing to other industrial sectors, the shipping industry is subject to much more severe boom-and-bust business cycle. The reason major shippers such as Hanjin Shipping and Hyundai Merchant Marine saw their financial standing worsen following the 2008 global financial crisis has to do with the difficulty of predicting the business cycle. Under a financial hardship, it is not easy for them to compete effectively with nimble competitors in the world that keep introducing eco-ships in their fleet. Eco-ships save about 20 percent of fuel than conventional ships.
The eco-ship fund is expected to help the shipping companies financially as the risk goes principally to the investors. In addition to the 25-percent fund investment, Korea EximBank will provide guarantees so that the shippers could accept the offer without worrying about the risks. An EximBank official said, "The scheme will benefit mid-sized shippers like Sinokor Marchant Marine and Polaris Shipping as well as large ones such as Hanjin Shipping and Hyundai Merchant Marine. Given most new ship orders commissioned by domestic shipping companies go to mid-sized shipbuilders, it would also impact the shipbuilding industry positively."

This news 6894 hits received.

COMMENTS

  • 0 Comment