SHI CEO Park Dae-young attended the Congratulatory Culture’s Night of International Maritime Summit held at a hotel in Mumbai, India, on April 14./ Photographed by Ha Man-joo

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By Ha Man-joo, India correspondent, AsiaToday - Korean shipbuilding industry has seen glimpses of hope to solve its crisis in India.

According to the Indian government and the industry officials on Sunday, Samsung Heavy Industries (SHI) is close to winning a liquefied natural gas (LNG) carrier order from India’s state-owned Gas Authority of India Limited (GAIL).

In addition, Korean small shipbuilding industry is seeking ways to achieve new orders and expand its market in India through Interbank Export Loan that India’s largest lender State Bank of India (SBI) and the Export-Import Bank of Korea (Korea Eximbank) are in talks for.

Kim Young-suk (middle), Minister of Oceans and Fisheries,attended the opening ceremony of 3-day International Maritime Summit held atMumbai Convention Center in Maharashtra, India, on April 14. (From left) India’sPM Narendra Modi, State Minister Devendra Fadnavis, Minister Kim Young-suk, Ministerof State for Road and Transport & Highways, Shipping P. Radhakrishnan, and InternationalMaritime Organization (IMO) Secretary-General Im Ki-taek./ Photographed by HaMan-joo

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SHI signed a memorandum of understanding (MOU) with Indian shipbuilder Cochin Shipyard to provide technology support at Mumbai Convention Center in Maharashtra on April 14. The MOU is set to bring SHI USD 435.5 million for chartering and building 6 to 9 LNG carriers.

SHI CEO Park Dae-young met with AsiaToday at a hotel in Mumbai, and said, “Nothing has been confirmed yet. However, we expect that the Indian government will provide support since state-owned Cochin has decided to build vessels. If the bidding is confirmed, orders for at least six vessels will be secured. Among six ships, four of them will be built in Korea and two of them will be made by Cochin with technological support of SHI.”

orea’s maritimeauthorities officials attended special partner country session of Korea atInternational Maritime Summit held at Mumbai Convention Center in Maharshtra,India, on April 14./ Photographed by Ha Man-joo

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SHI CEO Park attended ‘LNG 18’ exhibition that opened in Perth, Australia, on April 12, and then arrived to Mumbai on April 13. Then he signed the MOU with Cochin on the 14th, and flew to other country in the evening after meeting with Indian government and shipbuilding industry officials.

Korea’s small and medium shipbuilders are also speeding up their movement to enter the Indian market. Kim Chul-nyun, CEO of Sungdong Shipbuilding & Marine Engineering, said, “We have met shipbuilding industry officials in India. The current situation of the market is not good it may be hard to win new orders for now. However, we will be able to win new orders if the market situation improves and if we continue to maintain a comprehensive. In the case of India, there will be demand of 50,000 to 300,000-ton tankships and 70,000 to 180,000-ton bulk carriers. In this case, the financial problems that may arise could be solved through Interbank Export Loan between Korea Eximbank and India’s State Bank of India.” 

Kim Chul-nyun, CEO of Sungdong Shipbuilding & Marine Engineering, attended the Congratulatory Culture’s Night of International Maritime Summit held at a hotel in Mumbai, Maharashtra, on April 14./ Photographed by Ha Man-joo

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Kim Sung-chul, corporate improvement division head at Korea Eximbank, said, “We are discussing with the Indian side over the Interbank Export Loan issue. This loan agreement is about supporting ship chartering, new ship building as well as Korean companies’ Indian market expansion. In order to investigate demand, we are meeting large shipbuilders such as Reliance and Shipping Corporation of India (SCI). If Korea’s small shipbuilders enter into the Indian market in a cluster form with partners, it will give a new successful business model.”

Kim Sung-chul,corporate improvement division head at Korea Eximbank, attended the CongratulatoryCulture’s Night of International Maritime Summit held at a hotel in Mumbai,Maharashtra, on April 14./ Photographed by Ha Man-joo

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An Interbank Export Loan is the system that Korea Eximbank set up the credit line with local banks in other countries, and local banks raise funds from Korea Eximbank on more favorable terms and grant loans to local companies which have business relations with Korean companies.