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Lifting the sunken ferry Sewol to cost over $110 million

Lifting the sunken ferry Sewol to cost over $110 million

Posted April. 09, 2015 07:31,   


Once a decision is made on salvaging the sunken ferry Sewol, the government would reportedly select either a Dutch or a U.S. company for the salvage operation. The cost of the operation is estimated at around 120.5 billion won (110.4 million U.S. dollars).

According to the Oceans and Fisheries Ministry, the government will release a technical review report on the salvage of the sunken ferry this weekend at the earliest. The report will include how and when to salvage the ship as well as the cost. It will also release its plan to revise the Enforcement Decree of the Sewol Special Act.

After a salvage operation is confirmed, the government will select a service provider in an international bidding, while two companies – a Dutch and a U.S. company – are strong candidates. Although Japanese and Chinese companies intended to participate in the bidding process, the Korean government practically excluded them because of their relatively less advanced technology. Korean companies are also trying to bid for the deal, forming a consortium with a foreign partner. However, it is said that they are unlikely to be selected because of potential communication issues in the course of the operation.

It is estimated to cost a total of 120.5 billion won (110.4 million dollars) including 500 million won (458,000 dollars) for consulting fees to raise the sunken vessel. “We reviewed three cases in terms of the progress of the salvage operation and weather conditions, respectively, and calculated the average,” said Park Jun-kwon, director of the Ports and Harbors Bureau of the Oceans and Fisheries Ministry.

The ministry said 185.4 billion won (169.8 million dollars) was spent with regard to the ferry Sewol until the end of last year. Including the salvage cost, some 369.4 billion won (369.4 million dollars) needs to be added to finish the operation for the sunken ferry.