Monday, June 15, 2009
Korean Shipping Fund to Purchase 62 Vessels
Monday, 15 June 2009
The country’s shipping fund, which was designed to prevent vessels owned by shipping companies from being sold at their scrap value, will purchase 62 vessels from shipping firms. According to the Korea Asset Management Corporation (KAMCO) on June 12, 62 out of 72 ships that shipping firms had placed a purchase order for last week were selected to be bought. 10 ships were disqualified for their old age or lack of claim records after the construction of the ship.
Accordingly, KAMCO will negotiate with creditor financial companies to begin the purchase process. Some 3 to 4 trillion won will be injected to purchase 62 vessels. The government’s initial plan was to create a 4.3 trillion won shipping fund to buy a maximum of 80 ships. KAMCO and creditor financial companies will create a list of companies to select which ships to be purchased first.
KAMCO had already disclosed with Korea Shipowners Association that vessels less than 15 years old with low debt and has a long-term contract with the shipowners will be the first to be purchased. Accordingly, vessels with a small gap between the actual price and the purchasing price with an easy negotiating term will soon conclude purchasing contracts.
However, the negotiation could last longer as a big gap between the actual and purchasing cost occurs on the back of the plummeting freight costs of shipping firms since the economic crisis.
Source: Maeil Business
