[Sejong=Asia Economy Reporter Joo Sang-don] The Ministry of Oceans and Fisheries announced on the 29th that it has selected 13 companies, including POSCO and Hyundai Steel, as agreement partners for the '2020 Transition Transportation Subsidy Support Project' and will sign agreements on the 30th. This agreement signing ceremony will be conducted through document exchange in accordance with the strengthened social distancing guidelines due to COVID-19.
The Transition Transportation Support Project is a program that provides subsidies for part of the social benefits generated when switching to coastal shipping transportation, which emits less carbon dioxide than road transportation, in order to increase the proportion of eco-friendly transportation means such as coastal shipping.
To select agreement partners this year, the Ministry of Oceans and Fisheries held a public contest from the 3rd to the 17th of last month. After evaluation by the Transition Transportation Review Committee on the 19th, four consortia were finally selected. By industry, there are three cargo owners, one comprehensive logistics company, and nine shipping companies.
Through this agreement, four new routes are expected to be established. The volume to be converted to coastal shipping transportation among the total agreed volume is about 1.3 million tons. A subsidy will be provided within a limit of 3 billion KRW for this.
The Ministry of Oceans and Fisheries expects to contribute to reducing greenhouse gases in the logistics sector by cutting about 200,000 tons of carbon dioxide through this year's Transition Transportation Support Project. Additionally, with the reduction of road transportation, social costs exceeding approximately 60 billion KRW are also expected to be saved due to decreased road congestion, accidents, noise, and dust generation. From 2010 to 2019, the ministry achieved results by converting a total of 20.42 million tons of cargo to coastal shipping transportation through this project, reducing about 2.95 million tons of carbon dioxide and saving social costs exceeding 1 trillion KRW.
Kim Jun-seok, Director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, said, "With this agreement signing, we hope to lead the establishment of a low-carbon green transportation logistics system while stably securing cargo volume for coastal shipping companies and further strengthening the win-win relationship between shipping companies and cargo owners."
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