Incheon, South Korea – Plans for a large-scale ferry connecting Incheon and Baengnyeong Island have received a significant boost. The Ministry of Oceans and Fisheries (MOF) announced on April 21st the selection of two coastal shipping companies, Korea High Speed Ferry Co., Ltd. among them, as the beneficiaries of the first round of the 2025 ‘Coastal Vessel Modernization Fund’.
The Modernization Fund, managed by Sewol Ship Finance Co., Ltd. on behalf of the MOF, held a public application period from March 10th to 28th, attracting applications from the aforementioned two shipping companies. Following a thorough review, the fund’s investment deliberation committee convened on April 17th and finalized the selection of Korea High Speed Ferry and Kumho Shipping Co., Ltd. as the recipients of the financial support.
Established in 2016, the MOF’s Modernization Fund aims to facilitate the replacement of aging coastal passenger vessels with new, modern ships. In the previous year, the scope of the fund was expanded to include coastal cargo vessels, resulting in the selection of ten coastal shipping companies (nine for cargo vessels and one for a passenger vessel) through three rounds of public solicitation.
Korea High Speed Ferry applied for the Modernization Fund to introduce a large-scale passenger ferry to the Incheon-Baengnyeong route. The route has been without a car ferry service since the Harmony Flower (2,071 tons), which previously operated on this route, ceased operations in November 2022 due to reaching its statutory service life. Currently, the Korea Pride (1,600 tons) and Korea Princess (534 tons) are serving the route, but their smaller size restricts their ability to carry vehicles, causing significant inconvenience for residents and visitors.
In a proactive move to address this issue, the Incheon Metropolitan City, Ongjin County, and Korea High Speed Ferry signed a ‘New Construction and Operation Agreement for a Large Passenger Ferry on the Incheon-Baengnyeong Route’ on March 12th at Incheon City Hall. The agreement outlines the plan to construct a new high-speed car ferry with a capacity of 2,000 tons or more for the route. Korea High Speed Ferry has committed to commencing operations within 36 months, while the city and county have pledged to subsidize any operational deficits for a period of 20 years, ensuring the long-term viability of the service.
Kang Do-hyung, the Minister of Oceans and Fisheries, emphasized the significance of this selection, stating, “This selection is more than just supporting vessels; it is a crucial step in restoring maritime transportation networks in regions with accumulated transportation inconveniences, such as the Incheon-Baengnyeong route.” He further added, “The government will continue to take the lead in resolving transportation imbalances in island regions and will spare no effort in supporting safe and comfortable sea routes.”
The Incheon-Baengnyeong route is a vital transportation link for residents of Baengnyeong Island, the northernmost inhabited island in South Korea, located approximately 176 kilometers (109 miles) west of Incheon in the Yellow Sea. The island is known for its stunning natural landscapes, including Dumujin cliffs and Sagot Beach, and holds significant strategic importance. However, the journey to the mainland has often been challenging due to weather conditions and the limitations of the existing vessels.
The introduction of a larger car ferry is expected to significantly improve the quality of life for the islanders by providing a more reliable and comfortable mode of transportation. It will also boost tourism by allowing visitors to easily bring their vehicles to the island, facilitating exploration and supporting the local economy. The ability to transport larger quantities of goods will further contribute to the economic development of Baengnyeong Island.
The Coastal Vessel Modernization Fund plays a crucial role in enhancing the overall safety and efficiency of South Korea’s coastal shipping network. By supporting the replacement of outdated vessels with modern, environmentally friendly ships, the fund contributes to reducing maritime accidents and promoting sustainable maritime transportation. The expansion of the fund’s scope to include cargo vessels last year underscores the government’s commitment to strengthening the entire coastal shipping industry.
Industry experts and local residents have welcomed the news of the fund allocation, expressing optimism that the new ferry will finally address the long-standing transportation challenges faced by Baengnyeong Island. The collaborative efforts of the central government, local authorities, and the shipping company demonstrate a shared commitment to improving connectivity and fostering economic growth in the region. The successful implementation of this project is anticipated to serve as a model for future initiatives aimed at enhancing maritime transportation services to other remote island communities in South Korea. The development is also expected to spur related infrastructure improvements on both the mainland and the island to accommodate the larger vessel and increased traffic.
[Copyright (c) Global Economic Times. All Rights Reserved.]
