The Chinese government has unveiled a new subsidy programme aimed at modernising the country’s maritime fleet. The Ministry of Transport and the National Development and Reform Commission issued the “Implementation Rules for Subsidies for the Scrapping and Renewal of Old Operating Vessels in the Transportation Industry,” notice earlier this month, a move designed to encourage the replacement of outdated vessels with new, more efficient ones.

The subsidy programme, which will be in effect until December 31, 2028, is part of a broader strategy to promote large-scale equipment renewal by supporting the scrapping of old Chinese-flagged vessels and facilitating the construction of new ships, including those powered by clean and new energy sources.

Under the new rules, ship owners can apply for financial subsidies if they dismantle old vessels engaged in domestic coastal and inland waterway transportation. Specifically, vessels aged between 15 to 30 years, depending on the type, are eligible for the programme. To qualify, vessels must have valid inspection and registration certificates and must be scrapped during the programme’s implementation period.

In addition to scrapping subsidies, the programme offers support for the construction of vessels powered with alternative fuels and clean energy. Owners who replace old ships with new ones, or who build vessels with advanced energy technologies such as LNG, hydrogen, methanol or ammonia, can receive subsidies. The newly built vessels must meet specific operational and environmental criteria. For instance, if a shipowner replaces an old vessel with a new LNG-powered vessel, the subsidy amount is determined by the vessel’s type and tonnage. The calculation includes a base subsidy standard, adjusted by a type coefficient and an energy source coefficient.

The application process for these subsidies involves submitting detailed documentation to local transportation authorities, including evidence of ship dismantling and construction completion.

The Ministry of Transport and the National Development and Reform Commission will oversee the implementation of the subsidies, with local authorities responsible for reviewing applications and managing the disbursement of funds.

The Chinese government has unveiled a new subsidy programme aimed at modernising the country’s maritime fleet. The Ministry of Transport and the National Development and Reform Commission issued the “Implementation Rules for Subsidies for the Scrapping and Renewal of Old Operating Vessels in the Transportation Industry,” notice earlier this month, a move designed to encourage the replacement of outdated vessels with new, more efficient ones.

The subsidy programme, which will be in effect until December 31, 2028, is part of a broader strategy to promote large-scale equipment renewal by supporting the scrapping of old Chinese-flagged vessels and facilitating the construction of new ships, including those powered by clean and new energy sources.

Under the new rules, ship owners can apply for financial subsidies if they dismantle old vessels engaged in domestic coastal and inland waterway transportation. Specifically, vessels aged between 15 to 30 years, depending on the type, are eligible for the programme. To qualify, vessels must have valid inspection and registration certificates and must be scrapped during the programme’s implementation period.

In addition to scrapping subsidies, the programme offers support for the construction of vessels powered with alternative fuels and clean energy. Owners who replace old ships with new ones, or who build vessels with advanced energy technologies such as LNG, hydrogen, methanol or ammonia, can receive subsidies. The newly built vessels must meet specific operational and environmental criteria. For instance, if a shipowner replaces an old vessel with a new LNG-powered vessel, the subsidy amount is determined by the vessel’s type and tonnage. The calculation includes a base subsidy standard, adjusted by a type coefficient and an energy source coefficient.

The application process for these subsidies involves submitting detailed documentation to local transportation authorities, including evidence of ship dismantling and construction completion.

The Ministry of Transport and the National Development and Reform Commission will oversee the implementation of the subsidies, with local authorities responsible for reviewing applications and managing the disbursement of funds.