Modernization of 35 Aging Coastal Passenger Ships and Construction of Over 10 Eco-Friendly Vessels by 2025

Ministry of Oceans and Fisheries Establishes '2nd Coastal Passenger Ship Modernization Plan (2021~2025)'

Average Age of Coastal Passenger Ships Reduced to Under 10 Years

(Photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] The government has decided to reduce the average age of coastal passenger ships to within 10 years by 2025 through modernization of aging coastal passenger ships and construction of eco-friendly vessels.

On the 16th, the Ministry of Oceans and Fisheries announced that it had established the "2nd Coastal Passenger Ship Modernization Plan (2021~2025)" containing these details.

Following the Sewol ferry disaster in 2014, the Ministry of Oceans and Fisheries sought to alleviate public concerns about the safety and poor quality of coastal passenger ship services, and to create conditions for domestic construction of coastal passenger ships to promote the replacement and renewal of aging vessels. In 2015, the "Shipping Act" was amended to provide a basis for establishing a mid- to long-term plan for passenger ship modernization. Subsequently, in 2016, the "1st Coastal Passenger Ship Modernization Plan (2016~2020)" was established. Through this, the average age of coastal passenger ships was reduced from 14.5 years (as of 2014) to 11.2 years (as of 2020), and large ferries and ultra-high-speed vessels were constructed domestically to secure the shipbuilding capacity of Korean shipyards. Additionally, achievements included improving accessibility to coastal passenger services by introducing online reservation systems and mobile ticketing.

However, due to limited funding, the number of supported ship constructions was small, and small-scale coastal passenger ship operators still preferred to introduce aging second-hand foreign vessels due to financial constraints. The online reservation rate was only 6.5% (as of 2019).

In consideration of past achievements and limitations, the Ministry of Oceans and Fisheries has established the 2nd Coastal Passenger Ship Modernization Plan (2021~2025) outlining directions for improving coastal passenger ship facilities and services over the next five years. This plan envisions "providing safe and comfortable eco-friendly coastal shipping services" and includes 12 tasks for ship modernization, construction base modernization, and service modernization.

First, to modernize ships, the Ministry plans to restructure support projects such as the Coastal Ship Modernization Fund and interest subsidy programs to ensure continuous replacement and new construction of aging passenger ships, aiming to reduce the average age of coastal passenger ships to under 10 years. The fund will significantly reduce operators' burdens through participation by the Korea Development Bank (covering 40% of total ship price) and private financing (20%) guaranteed by the Korea Ocean Business Corporation, while the 2.5% interest subsidy will expand support through priority recommendation systems for small operators. Additionally, the government will support the development and proactive application of eco-friendly fuel-powered vessels, which are difficult for the private sector to attempt. Customized support measures such as subsidies to promote eco-friendly vessel conversion will also be pursued.

To secure domestic passenger ship construction technology, the plan includes developing various standard hull forms for ferries and ultra-high-speed vessels as part of construction base modernization. For roll-on/roll-off ships, which often face accident risks due to unclear separation of cargo (vehicles, etc.) and passenger boarding and disembarking, standard hull forms will be developed to separate cargo and passenger boarding for enhanced safety. Considering the limited volume of coastal passenger ship construction, the Ministry plans to strengthen cooperation with small and medium shipyards to secure stable orders and accumulate technology.

Alongside this, as part of service modernization, the Ministry will designate partially subsidized routes and deploy administrative vessels capable of irregular operation to secure maritime transportation rights for residents of isolated island areas where passenger ships do not call, actively cooperating with local governments. Furthermore, the Ministry will gradually implement wireless internet installation on passenger ships and provide safety equipment location services via QR codes, while installing keypads at ticket counters to alleviate passengers' concerns about personal information leakage such as phone numbers during on-site ticket sales.

Through these efforts, the Ministry expects to achieve by 2025: an average age of coastal passenger ships under 10 years; modernization of more than 35 aging coastal passenger ships; construction of more than 10 eco-friendly coastal vessels; and a customer satisfaction rating of over 92 points.

Kim Jun-seok, Director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, said, "Coastal passenger ships are the only means of transportation for island residents and an important tourism means for the general public. We will prioritize the public nature and popularity of coastal passenger ships and further strengthen safety and services."

This content was produced with the assistance of AI translation services.