KOREA Ocean Business Corporation in Seoul has announced its intention to provide financial assistance for the acquisition of 20 new feeder vessels for the south Korea-Japan route, reports London's Loadstar.
These vessels will consist of 10 units with a capacity of 1,000 TEU and 10 units with a capacity of 700 TEU.
They will be made available through long-term bareboat charters to support South Korean feeder operators which are facing challenges in renewing their fleets due to the increasing costs of newbuildings.
Considering an estimated new building price of US$20 million per vessel, the overall project cost could reach up to $400 million.
However, KOBC may initially proceed with an order for four to eight vessels before expanding further.
'We recently conducted a survey that showed 10 local feeder operators need 700-1,000 TEU ships to maintain their dominance of the South Korea-Japan route,' said KOBC head Jung Seong-jo.
'Newbuilding prices are reaching a historic highs, making it challenging to secure competitive charter rates. We will devise a funding plan to attract senior debt, while the KOBC will contribute 60 per cent of the shipbuilding cost,' he said.
SeaNews Turkey
These vessels will consist of 10 units with a capacity of 1,000 TEU and 10 units with a capacity of 700 TEU.
They will be made available through long-term bareboat charters to support South Korean feeder operators which are facing challenges in renewing their fleets due to the increasing costs of newbuildings.
Considering an estimated new building price of US$20 million per vessel, the overall project cost could reach up to $400 million.
However, KOBC may initially proceed with an order for four to eight vessels before expanding further.
'We recently conducted a survey that showed 10 local feeder operators need 700-1,000 TEU ships to maintain their dominance of the South Korea-Japan route,' said KOBC head Jung Seong-jo.
'Newbuilding prices are reaching a historic highs, making it challenging to secure competitive charter rates. We will devise a funding plan to attract senior debt, while the KOBC will contribute 60 per cent of the shipbuilding cost,' he said.
SeaNews Turkey