Cosco Bags USD 638mln Subsidy to Modernize Fleet

China COSCO Holdings Company Limited has won a government subsidy worth approximately RMB 3.963 billion (USD 638.7 million) through China Ocean Shipping, the controlling shareholder of the company, for the decommissioning and upgrading of vessels.

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 2015 to compensate the losses suffered by the company due to the advanced disassembling of the vessels,” Cosco said in a stock exchange filing.

The shipping company was very active in decommissioning of its older tonnage over the past two years.

In 2014, the company offloaded a total of 56 bulk carriers and container ships at 3.1 million dwt for scrapping, which resulted in government subsidies of RMB 1.4 billion.

The scrapping spree resumed this year as well, with over 40 vessels dismantled, including 17 in January and 8 in February.

The shipping company said it would have made a loss of RMB 1.38 billion in 2014 if it had not been provided with state subsidies and money raised from a share sale.

In line with the government support of fleet modernization efforts, China COSCO placed orders for a total of 117,960 teu of new tonnage.

World Maritime News Staff

Share this article

Follow World Maritime News

Posted on July 1, 2015 with tags .

In Depth>

Events>

<< Aug 2019 >>
MTWTFSS
29 30 31 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

World Gas Series: Morocco Summit

Bringing together key players in the gas value chain in Morocco, the World Gas Series:

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Shipping Transformation Asia

Shipping Transformation Asia will provide a platform for future-focused discussion in the shipping,…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >