KCTA and Hutchison sign contract for investment in Port of Kwangyang

The Korea Container Terminal Authority (KCTA) held a signing ceremony for second phase investment in the Port of Kwangyang with the Hutchison consortium, consisting of Hutchison Port Holdings, Hyundai Merchant Marine (HMM) and Hanjin Shipping (HJS) on March 31, 2001. It was attended by the Minister of Maritime Affairs and Fisheries, Mr. Wootaek Jeong, the governor of South Cholla province, Mr. Kyoungman Huh, a lawmaker from the area and member of the Committee on Agriculture, Maritime Affairs and Fisheries, Mr. Cholgi Jeong, the mayor of Kwangyang, Mr. Okhyun Kim, as well as other people in port and shipping industries.

Consortium investment amounted to 80% from HPH and 10% each from HMM and HJS.

When the private capital recruiting drive was announced for the second phase of construction in Kwangyang, this consortium was the sole applicant and through the standard evaluation was selected as a preferred negotiating partner. The consortium will have preferential rights to exclusively use seven berths, with some scheduled for completion near the end of this year and the remaining berths for the end of 2003. It will also enjoy preferential rights to negotiate for four berths in third phase construction. This may allow the KCTA to successfully introduce 200 million dollars in foreign capital.

HPH is a well-known leading port company, operating 20 ports in eight countries including HongKong, the U.K. and China. It handled 25 million TEU, 2.7 times the number of container cargoes in South Korea, in 2000 and expects to develop a Korean port business one step further with ample know-how, high productivity and competitive practices.

It also anticipated having Kwangyang ahead of schedule on its way to being a gateway for Korea and Far East Asia by attracting well known leading international shipping companies through synergetic marketing strategies.

The KCTA has scheduled completion of four berths in the first phase of the third stage for 2006, another three berths in the second phase for 2008, and is expected to be on track for the fourth stage as scheduled. Upon completion of all construction, the Port of Kwangyang will be equipped with 33 berths and capable of handling 8.28 million TEU by 2011.