Miracle Lake: First Indigenous Cruise Ship
- BUSAN, South Korea – South Korea is set to launch it's first domestically built cruise ferry, the "Panstar Miracle," on the busan-Osaka route, coinciding with the upcoming Osaka...
- The Panstar Miracle,a 22,000-ton vessel,was completed four years after its design was finalized in June 2021.
- The project received crucial policy financing after the shipbuilder, identified as a presidential shipbuilding company, faced financial difficulties, including manpower shortages and rising material costs, leading to a...
South Korea Launches Frist Domestically Built Cruise Ferry Ahead of Osaka Expo
Table of Contents
- South Korea Launches Frist Domestically Built Cruise Ferry Ahead of Osaka Expo
- ‘Miracle’ Sets Sail After financial Backing
- Policy Financing Played Crucial Role
- Export-Import Bank Provided Key Guarantee
- bank to Expand Support for Mid-Sized Shipbuilders
- South Korea’s New Cruise Ferry: The Panstar Miracle
- what is the Panstar Miracle?
- When was the Panstar miracle built?
- What are the features of the Panstar miracle?
- Who Financed the Panstar Miracle project?
- What Role Did the Export-Import Bank of Korea Play?
- What is a Refund Guarantee (RG)?
- Why is the Export-Import Bank Expanding Support?
- What are the plans for future support,according to the Export-Import Bank?
- Key Facts About the Panstar Miracle
BUSAN, South Korea – South Korea is set to launch it’s first domestically built cruise ferry, the “Panstar Miracle,” on the busan-Osaka route, coinciding with the upcoming Osaka Expo in Japan. The project, which involved policy financing for a mid-sized shipbuilder undergoing restructuring, marks a significant milestone for the nation’s shipping and tourism industries.
‘Miracle’ Sets Sail After financial Backing
The Panstar Miracle,a 22,000-ton vessel,was completed four years after its design was finalized in June 2021. The ship represents a landmark achievement as the first cruise ferry constructed with domestic capital and technology. The vessel can accommodate up to 355 passengers in 102 rooms and features amenities including outdoor swimming pools, jogging tracks, gardens, and casino gaming areas.
Policy Financing Played Crucial Role
The project received crucial policy financing after the shipbuilder, identified as a presidential shipbuilding company, faced financial difficulties, including manpower shortages and rising material costs, leading to a workout (corporate restructuring) starting in October 2023.
Export-Import Bank Provided Key Guarantee
The Export-Import Bank of Korea, the main creditor bank, played a vital role by issuing a $37 million refund guarantee (RG) to facilitate the construction of the Panstar Miracle. The bank also dispatched a management team to ensure the timely delivery of the vessel.
A refund guarantee protects the ordering company by ensuring reimbursement of advance payments if the shipbuilder fails to deliver the vessel. These guarantees are often a prerequisite for shipbuilding contracts, as they provide financial security for the ordering companies.A lack of RG availability can hinder a shipbuilder’s ability to secure orders.
bank to Expand Support for Mid-Sized Shipbuilders
The Export-Import Bank of Korea, which had previously limited its RG issuances following the presidential shipbuilding case, plans to expand its support to other mid-sized shipbuilders. Previously, the Korea Progress Bank was the primary issuer of RGs for mid-sized companies. the Export-Import bank’s increased involvement aims to bolster the rebounding shipbuilding industry, despite challenges such as U.S. tariff measures.
“We will begin credit rating assessments as soon as the mid-sized shipbuilders’ settlement results are available and review new RG issuances for shipbuilders with improved financial structures.”
Senior Official,Export-Import Bank of Korea
The bank’s decision to increase support reflects a commitment to strengthening the domestic shipbuilding industry and fostering growth in related sectors.
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South Korea’s New Cruise Ferry: The Panstar Miracle
This article provides an overview of the launch of South Korea’s first domestically built cruise ferry, the ”Panstar Miracle,” highlighting key aspects of its construction and the financial support provided.
what is the Panstar Miracle?
the Panstar Miracle is South Korea’s first domestically built cruise ferry. It’s a 22,000-ton vessel designed to operate on the Busan-Osaka route, coinciding with the Osaka Expo in Japan.
When was the Panstar miracle built?
The design for the Panstar Miracle was finalized in June 2021. It took four years to complete the construction of the ferry.
What are the features of the Panstar miracle?
The Panstar Miracle can accommodate up to 355 passengers in 102 rooms. It boasts amenities such as:
- Outdoor swimming pools
- Jogging tracks
- Gardens
- Casino gaming areas
Who Financed the Panstar Miracle project?
The project received crucial policy financing. The shipbuilder, a presidential shipbuilding company, faced financial difficulties, including manpower shortages and rising material costs, leading to corporate restructuring starting in October 2023. The Export-Import Bank of Korea, the main creditor bank, provided a key guarantee.
What Role Did the Export-Import Bank of Korea Play?
The Export-Import Bank of Korea (Exim Bank) played a vital role in the construction of the Panstar Miracle by:
- Issuing a $37 million refund guarantee (RG)
- Dispatching a management team to ensure timely delivery
These efforts were crucial in supporting the financially challenged shipbuilder.
What is a Refund Guarantee (RG)?
A refund guarantee protects the ordering company by ensuring reimbursement of advance payments if the shipbuilder fails to deliver the vessel. These guarantees are often a prerequisite for shipbuilding contracts, providing financial security for ordering companies. Without RG availability,a shipbuilder’s ability to secure orders can be substantially hindered.
Why is the Export-Import Bank Expanding Support?
The Export-Import Bank of Korea plans to expand its support to mid-sized shipbuilders. Previously, the Korea Progress Bank was the primary issuer of RGs for mid-sized companies. The Exim Bank’s increased involvement aims to support the rebounding shipbuilding industry.
What are the plans for future support,according to the Export-Import Bank?
according to a Senior Official from the Export-Import Bank of korea,the bank will begin credit rating assessments as soon as the mid-sized shipbuilders’ settlement results are available and review new RG issuances for shipbuilders with improved financial structures. This increased support reflects a commitment to strengthening the domestic shipbuilding industry.
Key Facts About the Panstar Miracle
The following table summarizes some of the key information about the Panstar Miracle cruise ferry:
| Feature | Details |
|---|---|
| Name | Panstar Miracle |
| Type | Cruise Ferry |
| Route | busan-Osaka |
| Tonnage | 22,000 tons |
| Capacity | 355 Passengers, 102 rooms |
| Amenities | Swimming pools, jogging tracks, gardens, casino |