Financing Ships of Innovative Technology

Abstract

The aim of this chapter is to outline the challenges innovative technology presents for parties which are involved in financing ships and to reflect operational pragmatism and fact-based research. The analysis considers the availability of ship finance, a segment of the maritime industry which is currently experiencing economic and disruptive challenges, and examines the impact of the associated premium of the purchase price of ships of innovative technology in the financial life cycle assessment of the asset. In order to address the financial burden, the option of using export credit facilities is considered, an option closely associated with State interests and know-how transfer through the construction of the vessels. Moreover, leasing schemes are considered as possible solutions, although these financings generally have higher costs of capital. The study considers liquefied natural gas (LNG)-fueled ships, as well as highly automated and autonomous ships, as case studies. Both cases demand a thorough risk assessment and financial engineering.

Keywords New technology ships; autonomous ships; LNG-fueled ships; export credit agencies; leasing