Calls to set back the port usage fee increase

The Pohang Chamber of Commerce and Industry asked MOMAF to withdraw its plan for port usage fee increases, which is tentatively scheduled for this October.

The new fees schedule will weigh heavy on companies' management and add logistic expenses to even poorly equipped ports, that is, if the fees are applied on an equal basis, regardless of the quality of the port's facilities, the Pohang Chamber of Commerce and Industry proclaimed in a report submitted to MOMAF. At present, port usage fees are based on the conditions and facilities that each port has to offer.

In case the port usage fee changes according to the MOMAF plan, the Port of Pohang will charge 310 won per ton for ocean going cargoes, for entry, an increase of 68.4% from the current 184 won. Coastal cargoes will go up to 90 won from 51 won, a 76.4% increase.

Steel companies using the Port of Pohangwill have to pay an extra 6.7 billion won per year. As an example, the Inchon Iron & Steel Co., Ltd. Pohang factory will pay 300 million won more in logistic costs every year.

A source at the Pohang Chamber of Commerce and Industry urged, "Considering the depressed steel economy, and the difficulties they are currently experiencing with exports, this is going to cause a lot of problems. It also flies in the face of the government’s previous pledges not to increase public utilities fee.”