South Korea: Hanjin Yeongdo Dockyard Wins Bid to Build Two Logistic Support Vessels

Hanjin Yeongdo Dockyard has finally won a bid for the first time in three years. On July 6, the company announced that it won a bid to build two logistic support vessels from Defense Acquisition Program Administration and signed an LOI to build four 4,700TEU container carriers at US 250 million dollars with shipping firms in Asia.

In fact, it has taken almost three years for Hanjin Yeongdo Dockyard to a bid since 2008. The company has won a bid to build both merchant ships and special purpose vessels.

On June 27, in addition, it eventually called off the strike which has lasted for six months. In other words, Hanjin Yeongdo Dockyard is now ready to bounce back and normalize its operation.

One shipping company said, “We have been cautious to place an order due to high shipbuilding price and labor strike. After hearing the news that the strike has ended peacefully, we have decided to sign the agreement because Hanjin is excellent in terms technology and lead time.”

An official from Hanjin Heavy Industries & Construction (HHIC) said, “We are promoting our sales activities through the global sales network. We expect more good news.”

According to the industry sources, HHIC has actively participated in bidding with a goal of taking care of things at the end of the labor strike and normalizing Hanjin Yeongdo Dockyard. Considering Hanjin’s advanced technology in mid-sized container carriers and special purpose vessels and fast lead time, it appears that HHIC would be able to win more bids.

Besides the contracts Hanjin has recently won, the Korean shipbuilder is thinking of starting new business to minimize the off-business period of Yeongdo Dockyard.

Meanwhile, the container carrier and logistic support vessel Hanjin Yeongdo Dockyard has recently signed refer to the state-of-the-art, eco-design ship (up to 20 knots, 251m in length, 37m in width and 20m in height) and Landing Craft Utility (LCU) for the support on naval operations and logistic supply respectively.

[mappress]

Source: HHIC, July 12, 2011.