Splash247: Splash Wrap: Koreans bankroll America’s rusting docks

Shipbuilding has become a central part of trade diplomacy in the Trump era. As well as a customised gold putter, it was noticeable that the Korean president, Lee Jae Myung, also presented Donald Trump with a model of an ancient Korean battleship when the pair met up earlier this week in the White House for a trade summit. 

The Korean delegation earmarked $150bn for shipbuilding under the slogan ‘Make America Shipbuilding Great Again.’

The centrepiece is Hanwha Ocean’s development plans at Philly Shipyard, which the Korean president visited on Tuesday. Hanwha unveiled this week a $5bn expansion plan for Hanwha Philly Shipyard, as well as ordering 10 tankers to be built in Philadelphia, aiming to boost annual output at the American facility from less than two vessels to 20 within a decade. 

Samsung Heavy Industries announced this week it is pairing with Oregon-based Vigor Marine to modernise repair yards and expand naval MRO capacity on the US west coast, while HD Hyundai unveiled a $2bn joint investment fund with US private equity firm Cerberus to finance US naval and offshore newbuilds.

But the obstacles are formidable: outdated US facilities, a shortage of skilled workers, the Jones Act’s protectionist restrictions, and a supply chain not fit for modern mass production. Even Korean executives admit it could take years to train local workers and scale up output.

Finally, in this week’s roundup of Splash articles, if you haven’t read it yet, do check out this contribution from Ben Pinnington, the founder of Polaris Media, on how the world of search engines is changing, and with it, how your maritime business is discovered and perceived online.

“It used to be said, in marketing circles, you are who Google says you are. No more. We are entering a new realm where you are who AI search says you are,” the PR exec wrote in an intriguing opinion piece. 

If you’d like to get an audio take on this week’s shipbuilding/trade summit in Washington, check out the latest edition of the Splash Wrap podcast below.