＂We don't have to follow the same trail for Japan＂

"If the Port Authority System is introduced without any consideration for opinions from the workers and users of the port, it will negatively affect the import and export industry as well as the stevedoring industry, including rising port logistic costs and difficulties in the labor force at the port," said the Korea Harbor Transportation Association.

It also insisted that there are other serious problems, such as logistic cost rises due to commercial port operations, difficulties in supplying smooth labor flow, blocks in modernizing the port facilities and stevedoring equipment, and layoffs in the work force. It said the time is not quite right to introduce a port authority system in Korea, given the current situation.

The Port Authority System was suggested in the "Government organization management consulting report" in February 1999 under the valuation that the Port of Pusan and the Port of Inchon might qualify with sufficient financial independence (Pusan's 13% net margin and Inchon's 26%) to support itself in the second half of 2000. Based on this report, the Ministry of Maritime Affairs and Fisheries prepared for the introduction of the Port Authority System through research projects. It is also known to be in discussions with concerned departments to change the current state operating system, regarding port systems and management systems, into a commercial management system.

This association claimed that in case the Port Authority System is introduced, the Port of Pusan and Inchon will need 477.4 billion and 165.2 billion won, respectively, for 7 years to initially lay down a strong self-support financial system. However, the Ministry of Planning and Budget gave notice that there would be no support for this system. It might be inevitable that port facility usage fees and wharfage are raised by more than 4 time. This would cause a chain reaction with stevedoring costs, union labor, and transportation fees skyrocketing.

They asserted, "We don't have to follow the same trail for the introduction of the Port Authority System which Japan took, and failed."