An analysis from a U.S. think tank has indicated that cooperation between Korea and the United States in the shipbuilding sector can take various forms, including maintenance, repair, and overhaul (MRO) outsourcing and shipyard acquisitions.
Korea proposed the 'Make American Shipbuilding Great Again' (MASGA) project after reaching a tariff agreement with the United States on the 31st of last month. The MASGA, which means 'making the U.S. shipbuilding great again,' is a shipbuilding collaboration project worth tens of trillions of won. It may be discussed as a key agenda item at the upcoming Korea-U.S. summit on the 25th.
According to related industries on the 17th, the Center for Strategic and International Studies (CSIS) recently stated in its report titled 'Paths for Shipbuilding Cooperation between the U.S. and Northeast Asian Allies' that, based on comprehensive analysis from interviews conducted over the past year with industry and government officials in the U.S. and allied countries, four paths were identified as the most feasible options.
The report identified Korea and Japan as countries for U.S. shipbuilding cooperation, highlighting a more positive evaluation for Korea.
The cooperation measures suggested in the report include four items: ▲outsourcing of U.S. ship MRO ▲acquisition of U.S. shipyards by allied countries ▲joint production of warships between the U.S. and its allies ▲purchase of vessels built in allied shipyards.
The MRO cooperation was analyzed as providing practical benefits to the U.S. in terms of strengthening supply chains and strategically utilizing ports. The report noted that 'cooperation in MRO with Korea and Japan is not a new concept,' mentioning that Hanwha Ocean secured two MRO projects last year and that HD Hyundai signed a maintenance agreement (MSRA) with the U.S. Navy.
Regarding the acquisition of U.S. shipyards by allied countries, the report highly valued the advantage of transferring overseas shipbuilding technology and know-how to the U.S. It specifically introduced options such as acquiring military shipyards, refurbishing non-military shipyards after acquisition, government-owned, contractor-operated (GOCO) systems, and establishing joint ventures or consortiums between U.S. and foreign corporations.
The report stated, 'Through changes in management methods of U.S. shipyards, retraining of local personnel, transfer of advanced overseas technology, and influx of capital investment, productivity improvements can be expected.' It added, 'If a large foreign shipbuilding company is the parent company, it will enable bulk purchasing of general materials and components, leading to cost reduction benefits.'
Joint construction proposed an assembly method through modular construction. It also referred to a system where hulls are created overseas and weapon and propulsion systems are integrated at U.S. shipyards.
The report explained, 'Corporations from allied countries can participate as suppliers of parts and modules in the modular system in the U.S.,' adding that 'the personnel and materials utilized in this process can be sourced not only from within the U.S. but also from throughout allied countries.'
The last example involves the U.S. Navy purchasing vessels built at allied shipyards.
This includes options such as ▲construction by allied shipyards based on U.S. designs ▲joint design with allies and construction at allied shipyards ▲designing and constructing by allies. However, considering the current trend of U.S. protectionism, it is analyzed as the most challenging and least feasible.
CSIS suggested that 'the U.S. must find the optimal balance between relying on allied and partner countries to solve shipbuilding industry issues and investing in its own capabilities.'