The United States views Chinese-made cranes occupying local ports as a national security threat, and domestic port crane companies such as HD Hyundai Samho, Doosan Enerbility, and HJ Shipbuilding & Construction are eyeing new opportunities. A port crane is a large crane used to load and unload containers or cargo from ships at a port. Equipped with monitoring features such as closed-circuit television (CCTV), it can confirm the status of vessel arrivals and departures and loading information in real time.
According to the industry on the 28th, the United States Trade Representative (USTR) is reviewing a plan to increase tariffs on Chinese-made port cranes from the current 25% to 100%. A public hearing was held on the 17th of last month, and public comments were accepted until the 19th of this month.
The U.S. government has consistently expressed concerns that Chinese-made port cranes could pose a threat to national security. This is because advanced equipment installed in port cranes can collect real-time port information and military equipment-related loading information and send it to China. Currently, about 80% of the cranes installed at U.S. ports are products of Shanghai Zhenhua Heavy Industries (ZPMC).
Last year, former U.S. President Joe Biden announced a plan to invest $20 billion (approximately 27 trillion won) to replace all port cranes over the next five years. However, the effort is sluggish due to high expenses and the difficulty of replacing products that are not nearing the end of their life cycle. The Donald Trump administration focused on not bringing in any more Chinese-made port cranes, intending to reduce the price competitiveness of such products by imposing high tariffs.
Chinese-made port cranes dominate a significant portion of the global market through competitive pricing. In comparison to domestic corporations’ products, the technology is similar, but prices are about 10-20% lower. As more Chinese products are installed, there are also evaluations that after-sales service (AS) is better. Outside of China, the remaining about 20% of the market is shared by corporations such as Liebherr and Mitsui, along with HD Hyundai Samho.
Domestic crane corporations are looking for opportunities to enter the U.S. market, expecting that it will open within a few years. Currently, companies making port cranes in Korea include HD Hyundai Samho, Doosan Enerbility, and HJ Shipbuilding & Construction, but these firms have not engaged in significant sales activities since securing orders for cranes at Busan New Port. Some crane orders may come out of Geoje New Port in about two years.
If high tariffs are imposed on Chinese-made port cranes, Korean-made cranes could gain a windfall. On the 16th, HD Hyundai Vice Chairman Jamieson Greer reportedly met with USTR representative Jamieson Greer to introduce HD Hyundai Samho’s crane manufacturing capabilities. HJ Shipbuilding & Construction is preparing for entry into the U.S. market from a long-term perspective. Doosan Enerbility plans to consider entry when business opportunities arise.
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