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KOMIPO agrees to accept KP&I policy
Monday, August 21, 2017, 08:49:45 Paul Yoon
It is noteworthy that KOMIPO(Korea Midland Power Co., Ltd.), a KEPCO (Korea Electric Power Corp) associate, has agreed to accept Korea P&I (KP&I)’s security in future for concluding transport contract, charter party and ship finance in the way that the overseas outflow of national wealth with only overseas IG clubs entry previously accepted in long practice by excluding Korean P&I Club can be prevented.

KSA (Korea Shipowners’ Association), KOMIPO and KP&I have inked an MOU dated Aug. 17th, a tripartite agreement aimed at Win-Win collaboration between Korean flag shipping players and power supplier so that the government-announced five state tasks for shipping can be faithfully pursued in details.

Under the deal sealed in the day, three organizations have agreed to join hands to carry out the detailed works for building ‘Rich Economy of Win-Win Wealth with Even Economic Development across the Nation’ as well as for securing ‘National Environmental Protection and Safety Responsible for Our Lives’.

KSA and KOMIPO plan to introduce the Comprehensive Review System (CRS) for Freight Bidding Contracts so that the shipping projects’ viability can be evaluated. Also, KOMIPO has agreed to early settle dispatch/demurrage accounts both at loading and discharge ports as well as cooperate by intervening in disputes on dispatch and demurrage money with suppliers for early settlement. On the other hand, KOMIPO is set to provide positive support for Korean flag shipping players to use ship finance without fail.

KOMIPO and KP&I also have agreed that the outflow of foreign currencies should be prevented as well as KP&I policies should be used as valid for those ports exporting steaming coal and for shippers/receivers. As a result, it is likely that the unreasonable practice of calling for production of overseas P&I clubs’ certificates irrespective of KP&I certificates available will be stopped.

Considering a coal carrier costs a normal P&I premium of about $100,000.00 a year, eighteen coal carriers committed with KOMIPO on long-term COAs are expected to stop the overseas outflow of $1.80m in total a year from Korea if they switch their overseas P&I clubs to KP&I.

Besides, KSA and KOMIPO have further agreed that those vessels anchoring at Boryeong Port based in Korea should gradually use fuel oil of low sulphur contents at phases, cooperate to early install scrubber onboard reducing exhaust gas emission and avoid by all means problems disturbing supply of steaming coals to KOMIPO due to issues of sailing safety, piloting and tugging.

Meanwhile, Vice President Jang Seok-Ik of KOMIPO pledged, citing: “The cooperation between shipowners and shippers is considered as the most important factor to stably supply steaming coal for power generation. KOMIPO will do its utmost for win-win cooperation with shipowners.”

Attending the MOU signing ceremony in the day, Ryu Sun-Hyeong, a director of MOF (Ministry of Oceans and Fisheries) told KIMIPO: “We convey our thanks to KOMIPO for its best support and cooperation extended to Korean flag shipowners. We strongly hope that under the MOU, long-term employment should be further expanded for Korean flag shipowners while KOMIPO playing a leading role in establishing the reasonable freight level system for long-term transport contracts under CRS for Bidding Contracts.”
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