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State Aid News

17 Feb 2023

Cyprus Rallies EU Partners to Get Shipping Sector Support

© Art N More / Adobe Stock

Cyprus is speaking to other European Union member states to shore up support for the shipping industry hit by sanctions on Russia, its shipping minister said on Friday.Cyprus has the third-largest shipping fleet in the EU after Malta and Greece. It has seen defections, or itself deflagged, about a fifth of its oil tanker fleet in recent months, connected one way or another to sanctions on Russia.The island's proposals include automatic extensions of so-called tonnage tax systems…

18 Jul 2022

S.Korea Gov't Calls on Strikers to End 'illegal' Siege of Daewoo Shipyard

Credit: IikaJzuchiN/Wikimedia Commons - CC BY-SA 4.0

The South Korean government on Monday called on striking workers at Daewoo Shipbuilding & Marine Engineering (DSME) to end their month-long siege of a dock at the company's biggest shipyard, which has paralyzed production and is delaying delivery of new vessels.Finance Minister Choo Kyung-ho called the occupation "outright illegal" and pledged a "stern response based on law and order."The shipyard near the city of Geoje, off the country's south coast, is one of the world's largest.

08 Dec 2021

TUI Reports Loss as Omicron Trumps Summer Recovery

© Mummert-und-Ibold / Adobe Stock

TUI reported an operating loss of over 2 billion euros ($2.26 billion) for its 2020-2021 financial year and said it may need to cut winter capacity as the Omicron coronavirus variant overshadows hopes of a rebound next summer.The world's largest holiday company has struggled since pandemic restrictions wreaked havoc on the tourism industry, leaving its hotels, airlines and cruises largely empty since March 2020.It expects travel bookings to return to pre-pandemic levels by summer 2022 but the Omicron variant has prevented it from giving an outlook for the current fiscal year running from Oct.

13 Aug 2020

AIDA Cruises Seeking German Government Aid

(Photo: AIDA Cruises)

Carnival Corp’s AIDA cruise operator is among a list of companies seeking state aid from the German government, the Business Insider website reported on Thursday.AIDA is seeking about half a billion euros ($591 million) in state aid, Business Insider said, citing a government list of companies requesting support, which also includes shipbuilder MV Werften and steel producer Georgsmarienhuette.The finance ministry declined to comment.AIDA is examining whether financing schemes offered by the government are suitable for the company, a spokesman said, adding he was not aware of any considerations

25 Jun 2020

Ferry Operators Start to See the Light at the End of the Tunnel

Photo: Interferry

Interferry CEO Mike Corrigan reflects on the crushing impact of COVID-19…but suggests that the gradual easing of travel restrictions offers a turning point on the road to recovery.Last year the ferry industry was riding the crest of a wave. In an end-of-year review, I went so far as to express my belief that the industry had rarely if ever been in such good health. Throughout the developed world, most operators were reporting year-on-year traffic growth and many had set new records for passenger and vehicle volumes.

22 Aug 2019

Croatia Gives State Guarantee to Keep Shipyard Afloat

AdobeStock/  © Burnel 11

The Croatian government said on Thursday it would guarantee loans of up to 150 million kuna ($23 million) to keep one of the country's biggest shipyards afloat and give it time to find a strategic long-term partner.The 3.Maj shipyard in the northern Adriatic port of Rijeka is owned by Croatia's biggest shipbuilding group Uljanik whose other shipyard in the port of Pula has already been placed into bankruptcy procedure.Under EU state aid rules, the government cannot provide financial…

11 Aug 2019

Europe Okays French Port Extension

The European Commission has cleared a French extension project for the Mediterranean port of Port-La-Nouvelle.The project involves the construction of dikes and a platform for the handling of heavy parcels, jointly financed by the Occitanie region, the department of Aude and the agglomeration of Greater Narbonne.The Commission has concluded that the financing of the dikes, amounting to approximately EUR158 million, does not constitute state aid because this infrastructure will not only benefit the economic activities of the port but will protect the entire coastline against hazards climate and tides. As for the wharf, it will initially…

04 Aug 2019

EU Okays Investment in Romanian Port

The European Commission has approved, under EU State aid rules, Romania's plans to grant EUR27.4 million investment aid to the Port of Galați, the largest sea-river port in the country.In April 2019, Romania notified the Commission of its plan to grant investment aid to the Port of Galați. The project consists of building a new multimodal platform with a capacity of 150,000 TEU/year in the area called Port Bazinul Nou.The total investment cost amounts to €89.9 million. It will be co-financed by the Romanian State, regional funds allocated via the Large Infrastructure Operational Program (LIOP) and private money coming from concessionaires of the platform…

12 Apr 2019

Nord/LB Sells Shipping Loans for USD2.9bln

German lender Norddeutsche Landesbank (Nord/LB) has completed the sale of a EUR 2.6 billion (USD2.9bln) shipping loan portfolio. The bank recently announced its withdrawal from shipping.A US hedge fund Cerberus Capital Management took over the portfolio, which comprises of the 263-vessel book - known as "Big Ben" -  with a non-performing loan (NPL) portion of some 90%.The transaction was closed on 9 April, in accordance with the signing of the purchase agreement dated February 2019, the German bank said. The bidding process was launched in autumn 2018 as part of the bank’s transformation program.The parties agreed to maintain confidentiality about the terms of the transaction…

21 Mar 2019

Polish LNG Terminal Gets EU Grant

Poland’s LNG import terminal in Świnoujście will receive a EUR128mln grant from from the European Regional Development Fund and the Cohesion Fund to expand its regasification capacity.The European Commission said in a notification that it has approved plans to support the increase of the regasification capacity, and the development of additional functionalities of the LNG terminal in Poland.The plans were approved under EU State aid rules and would see the terminal capacity increase from 5 to 7.5 billion cubic metres per year.The Commission approved the aid for the construction of this LNG terminal in 2011. The increase in capacity was…

25 Feb 2019

EU Okays Danish Seafarer Support Scheme

The European Commission has approved under EU State aid rules extending a scheme supporting the maritime transport sector in Denmark, including the ones working in the offshore wind industry.Under the amended scheme, shipping companies registered in the Danish International Register of Shipping (DIS) and employing seafarers aboard certain specialised vessels providing off-shore activities, such as, for example, guard  vessels, vessels servicing off-shore installations and vessels for raising, repairing and dismantling windmills can benefit from an exemption from income taxes for their seafarers.According  to a press release from the European Commission…

21 Feb 2019

HMM CEO to Step Down

Chang Keun Yoo, president and CEO of South Korea container line Hyundai Merchant Marine (HMM)  has decided to resign from his position next month.Chang-Keun Yoo has been Chief Executive Officer and President of Hyundai Merchant Marine Co. Ltd since April 02, 2013 and serves as its Chairman of the Board. Yoo served as an Executive Vice President of Hyundai Merchant Marine Co. Ltd., and Head of HMM Europe Ltd.According to a report in WSJ, he has offered to resign after months of being under pressure from its top creditor to quit over failures in its turnaround. His successor has yet to be announced.Yoo thanked staff for support and requested them “to join forces with an incoming CEO and make a new leap forward for history” in the emailed farewell message…

17 Jan 2019

Troubled Shipbuilder Uljanik Draws Investor Interest

© lexlero / Adobe Stock

Croatia's largest shipbuilder Uljanik, which is trying to attract investors to stay afloat, extended a due diligence process until late next week after drawing the interest of potential strategic partners.Croatia's Economy Minister Darko Horvat said four potential investors were looking at Uljanik's business data and another company was also interested, but did not elaborate."I expect at least two serious offers for Uljanik at the end of this process which would then prevent its bankruptcy…

02 Nov 2018

EU Approves State Aid for Lithuania’s Klaipėda LNG Terminal

The European Commission said that the EC has approved under EU State aid rules the compensation granted by Lithuania to LITGAS for supplying a mandatory quantity of liquefied natural gas (LNG) to the LNG terminal in Klaipėda.In November 2013, the Commission approved under EU State aid rules an aid scheme to support the construction and operation of a liquefied natural gas (LNG) terminal at the Klaipėda seaportin Lithuania The LNG terminal has, since its construction, played a vital role in the diversification of gas supplies and security of supply in Lithuania.In June 2018, Lithuania notified the Commission of certain changes to the aid scheme approved in 2013 namely public service obligation of LITGAS and removal of purchasing obligation.To ensure security of supply…

14 Oct 2018

EU Extends Danish Tonnage Tax Scheme

The European Commission has approved under EU State aid rules the extension of the existing Danish tonnage tax scheme to additional types of vessels.This will encourage ship registration in Europe and contribute to the global competitiveness of the sector without unduly distorting competition.At the same time, Denmark will amend its existing scheme to ensure that it applies only to genuine maritime shipping activities by limiting revenues from non-core activities to an acceptable level.Commissioner Margrethe Vestager in charge of competition policy, said: "Denmark's revised tonnage tax scheme will help the shipping industry remain competitive on the global market. It will preserve jobs and promote high environmental standards in the maritime transport sector.

05 Oct 2018

European Shippers Call for Action Against Unfair Trade

European Shipowners and Maritime Technology Industry call for decisive actions against unfair trade practices and in favour of global playing field.The European Shipyards and Maritime Equipment Association SEA Europe and the European Community Shipowners’ Associations (ECSA) welcome the recent statement of EU Trade Commission Cecilia Malmström against unfair trade practices in the Far East.The trade associations representing respectively European shipbuilding and maritime equipment and European shipowners now call upon the European Commission and the EU Member States to take concrete and decisive actions against such practices and in favour of a true global level playing field for the European industry.Market-oriented conditions…

19 Feb 2018

Digitalisation of Ports is Fourth Industrial Revolution

The digitalisation of ports and terminal operations offers ways to realise a “fourth industrial revolution”, bringing with it safety, operational, and environmental benefits, delegates heard at the Port Equipment Manufacturers Association (PEMA) annual general meeting, which was held in the Spanish port city of Bilbao. Digitalisation themes that were explored during presentations included artificial intelligence, data management, cyber-physical systems, and interoperability between layers of IoT platforms – all of which are emerging as ways to improve container throughput at ports and terminals. Keynote speakers Lamia Kerdjoudj-Belkaid, secretary general of ports body FEPORT, and Capt.

18 Jan 2018

EU Ports Stress on Open Investment Environment

European Commission published a Proposal for a Regulation establishing a framework for screening of foreign direct investments into the European Union and a Communication entitled “Welcoming foreign direct Investment while Protecting Essential Interests” on 13 September 2017. The European Sea Ports Organisation (ESPO) welcomes the fact that the Commission proposal is stressing the importance of an open investment environment. The port sector is capital intensive. Over the last decades ports in Europe have benefitted from substantial investment from outside the European Union, both directly into assets and in some cases, into significant equity stakes in port owners.

20 Dec 2017

EC Okays Maltese Tonnage Tax Scheme

The European Commission has conditionally approved under EU State aid rules the Maltese tonnage tax scheme for a period of 10 years. The scheme will ensure a level playing field between Maltese and other European shipping companies, and will encourage ship registration in Europe. Commissioner Margrethe Vestager, in charge of competition policy, said "Tonnage tax systems are meant to promote the competitiveness of the EU shipping industry in a global market without unduly distorting competition. I am pleased that Malta committed to adapt its tonnage tax system to achieve this. Moreover, by encouraging the registration of ships in the EU, the scheme will enable the European shipping industry to keep up its high social and environmental standards”.

08 Jun 2017

Shipowners Welcome EU Maritime Transport Policy

European Transport Ministers have adopted conclusions on the priorities for the EU’s maritime transport policy until 2020, says a press statement. The conclusions endorse the content of the so-called “Valletta Declaration” adopted at the informal ministerial conference organised by the Maltese Presidency end of March. “With the current EU strategy for maritime transport policy 2009-2018 coming to an end in less than two years’ time, we are pleased that the Council is identifying what to prioritise next”, commented European Community Shipowners’ Associations (ECSA) Secretary General Patrick Verhoeven. “The conclusions adopted today set out the right priorities and challenges: competitiveness, simplification and digitalisation, decarbonisation and the reduction of air emissions”, he added.

18 May 2017

EU Softens Rules on Ports Investments

European Commission has exempted public support measures in a number of areas from prior Commission state aid control, said a press statement. This facilitates public investments in key infrastructure, namely ports and existing airports, but also public support for culture, multi-purpose sport arenas and the EU's outermost regions. EU State aid rules ensure that companies can compete on equal terms in the EU Single Market to the benefit of European consumers. The EU Treaty gives the Commission the task of enforcing those rules. Because fair competition is not just a question of what private companies do. We also have to look at what governments are doing – at how State-owned companies operate and at the subsidies that governments give.

28 Feb 2017

EU Shipping Needs Stronger Global Orientation -Study

Photo: Copenhagen Malmö Port

The EU has an overall competitive regime in place for fiscal and social measures as well as quality registers and a strong skills base. This combination supports the current status of the EU as an attractive location for shipping activities. To develop further growth in European shipping, the EU however needs to adapt this framework into a comprehensive, globally oriented shipping policy that aims to improve the EU’s competitiveness as a location for international shipping. That…

25 Jan 2017

Korean Government to Fund HMM Vessels

South Korean shipping unit will purchase Hyundai Merchant Marine (HMM) vessels for USD 515 million and lease them back to the container carrier at favorable charter rates as part of a state aid program. Korea Shipping Co., a new entity servicing troubled shippers will act as a shipping bank to buy vessels from shippers to lease them back to help them out of financial troubles, was launched on Tuesday on initial paid-in capital of 1 trillion won. HMM will become the first beneficiary of the Korean government rescue schemes for shipping through the Korea Shipping Co. HMM also under state bank management is being groomed to take the place of Hanjin Shipping. “We are coordinating the funding plan upon specific support request from HMM.

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