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Cosco books $225m subsidy from ship scrapping

China Cosco has benefitted from the ongoing China government drive to boost ship scrapping, announcing that it received a subsidy of RMB1.38bn ($224.8m) for the decommissioning and upgrading of vessels.

Vincent Wee, Hong Kong and South East Asia Correspondent

October 1, 2014

1 Min Read
Kalyakan - stock.adobe.com

The subsidy was recognized as non-operating income and will be included in the profit and loss of the company for the year ending 31 December 2014 to compensate the losses suffered by the company due to the advanced disassembling of the vessels, China Cosco said in a stock market announcement.

Cosco added that it expected the subsidy to have a positive impact on the operating results of the company for the year.

China Shipping Development Co (CSDC) and China Shipping Container Lines (CSCL), subsidiaries of China Shipping Group, have also received subsidies worth a combined RMB255m from ship scrapping activities between 1 January 2013 to 30 April 2014.

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About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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