HONG KONG CONTINUES AS SHIP FINANCE CENTER

by Paul Richardson

The emergence of mainland China as a future major economic force is providing the impetus for the development of the country’s commercial fleet. Locally-based shipowners, particularly in the booming southern and central regions, are increasingly utilizing Hong Kong subsidiaries, purposely set up to tap the potential of the major foreign finance houses, and as a means of by-passing any political restraints that might be in place, and which the Chinese believe, hinder future development.

Large Order Looms
In recent weeks, Hong Kong has played host to a number of South Korean shipbuilders who have been actively chasing a highly lucrative order for the construction of up to six 200,000 dwt capesize bulk carriers for one of China’s largest steel mills, Shougang.

To date, no firm contracts have been placed, but from Hong Kong the word is that the vessels will be shared between Hyundai Heavy Industries, Daewoo Heavy Industries and Samsung Heavy Industries. A seventh vessel is likely to be built at the Sasebo shipyard in Japan.

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