SOUTH Korean ship owners have announced further fleet expansion plans given the improved financial situation and the buoyant shipping market.
The Korea Shipowners¡¯ Association said second-hand Capesize vessels and 2,000 TEU ships would be added to the fleet this year.
In the first ten weeks of this year, Hanjin Shipping has ordered three 6,500 TEU ships while Hyundai Merchant Marine has placed orders for four 8,600 TEU and five 4,700 TEU ships.
Other orders placed this year include STX Pan Ocean¡¯s two 45,800dwt product carriers and two pure car and truck carriers from Eukor.
Owners have also been boosted by the growing ship finance sector in Korea.
The ministry is about to set up two more ship finance companies led by dry bulk player Chang Myeong Shipping and Seyang Shipping respectively.
These will be in addition to the existing two groups that manage a number of lending institutions.
Samsung Corp and Hanjin Heavy Industries will be investing in the Chang Myeong venture.
The government expects annual lending for ship acquisitions to exceed $12Bn by 2011.