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China Shipping’s Firms Get CNY319M Subsidy for Scrapping Old Ships

Time：2014-12-31 Browse：127 Author：RISINGSUN

The two listed units of China Shipping (Group) Co., the nation’s second largest shipping group, have received combined subsidies of 319 million yuan (US$52 million) from the government for scrapping old vessels.

China Shipping Development Co. (1138.HK), which operates oil tankers and dry-bulk ships, said in a statement Monday it has received subsidies worth 241 million yuan for scrapping old vessels.

Affiliate China Shipping Container Lines Co. (2866.HK) said in a separate statement that it received CNY77.7 million in subsidies for scrapping seven old vessels.

The cash incentive comes after the Chinese government in late 2013 unveiled details of a new subsidy program to encourage the nation’s ship operators to replace older cargo ships and tankers with new ones.