Vessel operating companies in competition

Allied Summit Shipping Investment (ASI) registered with the Ministry of Maritime Affairs and Fisheries as a vessel operating company Oct 14. This is the second since the Korea Shipping Fund (KSF) launched last March.
ASI was established with the fund from domestic shipping companies such as Changha Shipping and Allied Summit Investment Ltd., consulting with the Ministry of Maritime Affairs and Fisheries since last August. To satisfy man power requirements, the company is recruiting domestic experts.
ASI plans to focus on procuring second?hand vessels from mid to small sized shipping companies rather than new vessels from large shipping companies, which the KSF concentrated on.
In the mean time, ASI is expected to put the vessel fund market under real competition. Especially, while the KSF has been trying to launch the first vessel fund, ASI also rushed into raising first vessel fund as well right after its registration.
An insider from MOMAF said, ?his is really good news for mid to small sized shipping companies that have rarely been exposed to vessel funds. The companies expect that ASI will provide vessel funds with favorable terms.? The mid to small shipping companies have been unable to access vessel funds in spite of having satisfactory shipping businesses.
Since the Vessel Fund Investment Law was enacted in May 2002, MOMAF has supported the law in terms of taxes and legal system. Through reshuffling the law in August 2003, overseas branches of vessel investment companies are now allowed, while limits and uses of loans have been relaxed and profits from the vessel fund will be improved through ministerial negotiations.