MOMAF prepared for logng-term transhpment cargoes

Ministry of Maritime Affairs and Fisheries are going to enact plans to increase harbor value-added and to attract transshipment container which is such a high value added cargoes, making Port of Pusan and Port of Kwanyang as Trans - Pacific logistic center.

Throughout in port of Pusan during 2000 might be looking forward to throning Pusan on the third place. However, Port of Pusan has no competitiveness in transhipment cargoes and portions out of total cargoes, one of key index to evaluate the International Hub Port, compared with the most worldwide harbors in the world.

On the basis of 1999 record, Port of Singapore handled the transhipment cargoes as much as 12.75million TEU (80.2% out of total cargoes), Port of HongKong 4.29 million TEU (26.7%), Port of Kaohsiung 3.59million TEU (51.5%). Meanwhile, Port of Pusan just anticipated to treat 2.4 million (some 30%) in 2000 and Port of Kwangyang 70 thousnads (around 10%).

MOMAF established the plans to folster transhipment cargoes upto 50% from total container cargoes in the long - term plans and to introduce incentive plans for port operating company. At first, as one of incentives for port operating company, container terminal leasing system is completely changed into fixed leasing system from sharing profits. Also refund system is prepared according to the results of shipping company's transhipment cargoes.

Freight arrival fee which used to take in charge under shippers but transfered to carriers who decided to transhipment for foreign freight is under consideration to cut down the fee. Port of Pusan is congested with chronically with lack of port facilities. For example throughout in Port of Pusan reached about 7.5million last year, showing yearly stevedoring capacity just to restrict to 4.2million TEU. Also Kwangyang is under consideration of exempting port terminal utilization fee by the end of 2001.

In Korea transhipment cargo has increased by 50% to 2.5million TEU in 2000 from 1.66 million TEU in a year earlier.