Pusan CFZ in the rough

The Customs Free Zone (CFZ) in the Port of Pusan had some rough going in the face of opposition from concerned businesses.

The Pusan Regional Maritime Affairs and Fisheries and the City of Pusan announced March 5 that it would designate the Pusan East Container Terminal (PECT) in the northern harbor and the western part of Kamcheon as the proposed sites for CFZ. It will also hold an explanatory meeting on CFZ registration and how the proposed sites will receive it.

PECT, however, is worrying about disadvantages to shippers or terminal operating businesses. Specifically, as customs officers reside at the gates and combined inspecting offices will have to be built, strengthened inspections for cargoes in and out may inconvenience shippers and businesses, if PECT is registered as CFZ.

Currently PECT is handling container cargoes at 11 gates in bonded districts.
If combined inspecting offices are established, cargo handling speeds might be fall, making PECT less competitive with other terminals.
Especially, PECT was recording the highest numbers for on-dock handling, nearly 50 percent. It seems hardly satisfactory if only quay areas are registered as CFZ without additional hinterlands.

An official at PECT said that they would oppose CFZ registration unless the former Dongmyoung timber mill site next to the cargo handling yard in PECT, around 130,000 square meters, is included in the CFZ and customs inspections are lessened. In spite of higher competition among terminals, they would not allow the terminal to inconvenience shippers because of CFZ registration, he added.