The Korea Development Bank has urged the country’s shipbuilders to explore the construction of cruise ships to ward off growing competition from China. In a report the bank, which provides re-fund guarantees for yards, has stressed that cruise ship newbuildings could be the new growth driver for Korean shipyards. It has warned that China’s rapid expansion of yards and technological capability could mean severe competition for large tankers and container ships in which Korean yards have an edge at present.
The report also points out that yards are flush with cash from the current shipbuilding boom and have the resources to invest in R&D. Shipbuilding sources, however, told Fairplay that a “prudent” approach would be taken towards the cruise ship sector in which European yards have a clear lead. Hyundai, Samsung and Daewoo, have the capability as they have already built ferries. Samsung has even finalised a design for 85,000gt cruise ships. At present offshore construction is seen as a more lucrative diversification option because of the high value of floating structures.
The report also points out that yards are flush with cash from the current shipbuilding boom and have the resources to invest in R&D. Shipbuilding sources, however, told Fairplay that a “prudent” approach would be taken towards the cruise ship sector in which European yards have a clear lead. Hyundai, Samsung and Daewoo, have the capability as they have already built ferries. Samsung has even finalised a design for 85,000gt cruise ships. At present offshore construction is seen as a more lucrative diversification option because of the high value of floating structures.