New Ulsan Port project on the rocks

The New Ulsan Port development project, a state project, is facing a crisis because of failing to lure private capital.

The Ministry of Maritime Affairs and Fisheries (MOMAF), and Ulsan Regional Maritime Affairs and Fisheries revealed that there have been no new applicants from the private sector for the berth building side of the project since December 8, 2000.

This failure for the New Ulsan port project, which intended to raise private capital of 1.41 trillion won, clouded where the other half of the New Port Project construction costs would come from.

This project has been pushing to make Ulsan a hub port for Southeastern Korea by 2011 with 31 berths and 2 breakwaters at an estimated cost of 2.9 trillion won, 1.49 trillion won from the government for the breakwaters and 1.4 trillion won from private investors for the berths.

However, it is difficult to see how things will go on with private capital needed to build multi-purpose wharfs and container terminals.

An official at MOMAF said, "It is difficult to push this project if private investors don't participate in it because the private investment is needed for nearly half of all construction. We are going to try again to recruit investors".