Four shipping lines have received 1.8bn yuan ($293.3m) in subsidies by China, the companies have confirmed. The purpose of the funding is to encourage them to upgrade their fleets and scrap old vessels.
In the end of last year, China made an announcement that shipping lines would receive subsidies to replace old vessels with new, greener ones generating orders for Chinese shipbuilders.
On Tuesday China Cosco confirmed it had received the amount of 1.3bn yuan, through China Ocean Shipping Group, as a compensation for demolishing and upgrading old ships. The amount of 182.9m yuan was received by Cosco Shipping for fleet upgrades.
China Shipping Development Co. (CSDC) confirmed on Monday 215m yuan in subsidies by the China's finance ministry for scrapping 15 vessels. The amount awarded to China Shipping Container Lines (CSCL) for scraping five vessels is 40m yuan.
In the beginning of September, the Chinese government announced a plan for industry revitalising which will run through 2020. It involves reforms in the tax and regulatory sectors along with fleet modernising and developing the ports of Dalian and Shanghai.