Domestic port development throngs foreign funds

Foreign funds are flowing into the domestic port development businesses.

According to the Ministry of Maritime Affairs and Fisheries (MOMAF) and related industry officials, well known global companies including Maersk-Sealand, Denmark are showing high interest levels in Korean port development projects following the recent selection of Hutchison Port Holding (HPH), a Hong Kong container terminal operating company, as Kwangyang’s new operating company.

HPH was the most active foreign company that showed a strong interest and was selected as the operating company for 7 berths in the Port of Kwangyang, scheduled to open by the end of 2003. HPH has teamed up with Hyundai Merchant Marine and Hanjin Shipping to operate the container terminal company. HPH holds an 80% stake in it while HMM and HJS each holding a 10% stake.

HPH also showed strong interest in participating in the Pusan New Port project with 199.84 billion won in investment. HPH has expressed interest in acquiring the rights to operate 20 berths that will be built by the Korea Container Terminal Authority and the government on a long-term basis.

Maersk-Sealand, SSA and CSX also voiced strong interest in participating in the Pusan New Port project. The Pusan New Port Authority will decide sometime before the end of June which company it will involve and how much it will invest.

In addition, several foreign investors indicated interest in the Boryoung New Port development and Masan Port projects. The South Chungchong province signed an MOU (Memorandum of Understanding) with the Whieldstone Group, U.S.A., at the end of last month. The Hyundai Development Company is currently finalizing negotiations over the Masan development project with IPM, a Belgian group.