The Wall Street Journal (WSJ) reported on the 12th (local time) that it will take a long time to realize the revival of the U.S. shipbuilding industry that Korea promised.
According to the WSJ, of the 12 U.S.-flagged vessels that Hanwha Group is building, two large LNG carriers that will transport U.S.-produced natural gas to Asia and Europe are expected to have almost all construction work carried out in Geoje, Korea.
At Hanwha Philly Shipyard in Philadelphia, U.S., which Hanwha Group acquired last year for $100 million (about 140 billion won), the LNG carriers are expected to undergo only checks and modifications to ensure compliance with U.S. laws and U.S. maritime safety standards.
The WSJ noted that Philly Shipyard has not yet acquired the capability to build complex large ships, and that building ocean-crossing vessels in the United States costs four to five times more than doing so in Korea or China.
Experts projected that when Hanwha Group builds the 10 medium-range tankers (MR tankers) it recently won at Philly Shipyard, the construction expense will reach $220 million (about 310 billion won). It is known that building them in China or Korea would be possible for about $47 million (about 6.7 billion won).
U.S. shipyards that currently produce commercial vessels are focused on small ships. Even that workload is maintained thanks to the "Jones Act" enacted in 1920, while at the few large shipyards remaining in the United States most work involves building and repairing U.S. Navy warships.
Vasilis Caratzas, CEO of the shipping consultancy "Caratzas Marine Advisors," said, "Pure capital infusion alone, even in the multibillion-dollar range, will not be enough to provide momentum for a sustainable renaissance of U.S. shipbuilding."