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China extends scrapping subsidies through 2017 to cut tonnnage
BEIJING has extended by two years a subsidy programme that encourages shipping companies to scrap old vessels in a bid to support reduce overcapacity plaguing the market.
Subsidies, started in 2013 and due to end this year, give shipping lines US$241.67 per gross ton to replace old vessels with newer ones.
They helped state-backed Cosco group to post a higher 2014 profit instead of a loss that would have been recorded had it not been for the subsidies.
"The shipbuilding and shipping industries are facing a very difficult downturn, the scheme's extension reflects their needs," said Zhang Shogun, executive vice-chairman of the Chinese Shipowners' Association.
The subsidy extension was announced in a joint statement by the Ministry of Transport, the Ministry of Finance and the National Development and Reform Commission (NDRC).
Subsidies, started in 2013 and due to end this year, give shipping lines US$241.67 per gross ton to replace old vessels with newer ones.
They helped state-backed Cosco group to post a higher 2014 profit instead of a loss that would have been recorded had it not been for the subsidies.
"The shipbuilding and shipping industries are facing a very difficult downturn, the scheme's extension reflects their needs," said Zhang Shogun, executive vice-chairman of the Chinese Shipowners' Association.
The subsidy extension was announced in a joint statement by the Ministry of Transport, the Ministry of Finance and the National Development and Reform Commission (NDRC).
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