Logistic idea should be introduced in ports

A new National Assembly audit confirmed inefficiencies in rail transportation facilities originally pointed out a Ministry of Maritime Affairs and Fisheries audit performed by the Board of Audit and Inspection of Korea.

Lawmaker Chung Chul-ki revealed that though they have to introduce logistic terms in ports there were between 3 and 5 billion won in losses because rail facilities stood outside of ports, requiring one extra step, trucking, to get cargoes between rail facilities and ports.

Rep. Chung blamed the president of the KCTA, Cho Nam-il, saying that port development should focus on enabling them to provide comprehensive services. However, port management won't hear of it, again exacerbating waste, he said.

In addition, current investments in Kwangyang are not sufficient to be a hub for Northeast Asia. Rep. Park Jae-wook stressed that domestic port investments only reached the 7% level of total SOC (Social Overhead Capital) from lack of understanding. If current investments stay just as they are, facilities equipping rates will shrink to 65% from the current 81%, with cargoes disappearing to nearby ports, he added.

Port development projects are causing serious worries because they weren't sufficiently reviewed.