China Consortium Signs Sewol Salvage Deal

A consortium of companies led by China’s  state-run Shanghai Salvage Co. has officially signed a contract with the government of South Korea to raise the Sewol ferry which sank on April 16, 2014 off Jindo Island, killing 304 passengers and crew, South Korea’s Ministry of Oceans and Fisheries (MOF) said.

The contract was signed following two weeks of negotiations which started on July 15 after MOF had chosen the consortium as the preferred bidder, beating 27 other companies that applied for the tender.

The parties agreed on a KRW 85.1 billion (USD 73 million) contract value, payable in three phases. The first payment will be made after the completion of loss prevention and oil recovery procedures. The second tranche will be paid after the ferry is lifted and docked at the designated location, and the third installment will be made after the ferry is brought ashore for demolition.

The 6,825-ton ferry sank in 44 meters of water notorious for its strong currents and low underwater visibility. Shanghai Salvage will use two 10,000 ton cranes and around 200 workers to lift the ferry, including around 100 divers.

South Korea announced plans to salvage the sunken ferry back in April, following public protests that marked the first anniversary of the tragedy, and increasing demands from the families of the victims for the ferry to be raised.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2017 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

CWC World LNG & Gas Series: Americas Summit

Now in its 15th year, the CWC World LNG & Gas Series: Americas Summit is the longest running LNG event in the Americas region.

Bringing together the key players in the LNG & gas value chain in both the Americas region and globally, this is the perfect place to make new contacts, do deals and get essential updates on the market.

This year we return to Houston, TX once again on 20-23 June 2017 – the heart of the energy industry, making it easier than ever to access they key players in your business.

More info

read more >

Nor-Shipping 2017

Nor-Shipping is the leading maritime event week. Their top-quality exhibition, high-level conferences and prime networking opportunities…

read more >

2ND ANNUAL PORTS AND TERMINALS INSURANCE SEMINAR

DETAILED GUIDANCE ON HOW THE INSURANCE MARKET IS CHANGING, HOW RISKS ARE ASSESSED AND WHAT…

read more >

2ND ANNUAL ADVANCED CHARTERING MASTERCLASS

The Advanced Chartering Masterclass will focus on the particularly difficult issues in charterparty agreements and our experts will help you find solutions…

read more >