Pyoungtaek has to draw shippers with CFS for LCL cargoes

"The Port of Pyoungtaek should secure a Container Freight Station (CFS) for less than container load (LCL) cargoes in its hinterlands. There are also worries about shrinking LCL cargoes at the Port of Pyoungtaek. The decline is attributed to the port's extra surcharges for LCL cargoes. Those charges result from bulk carriers rarely calling at the Port of Pyoungtaek because they lack adequate fork lifts and shore cranes," insisted a group of forwarding companies in a visit to the Port of Pyoungtaek. They also stated that because there are neither garages nor warehouses in the hinterlands at the Port of Pyoungtaek it was terribly difficult for shippers in Chungcheong province to use the port.

Around 80 people in the forwarding industry visited the Port of Pyoungtaek on November 8 to look around its logistic facilities, managed by the Korea International Freight Forwarder Association (KIFFA).

The Port of Pyoungtaek answered that the western harbor is ready for a refrigerated warehouse of 91 pyoung (about 300m2 - 1 pyoung is approximately 3.3m2), a CFS totaling 418 pyoung (about 1,380m2), and a general warehouse of 1,000 pyoung (about 3,300m2), scheduled for completion by the end of this year. The East harbor is also under way for a total of 1,500 pyoung (about 4,950m2) in new warehousing space that will be in service by next March.

Some forwarders complained that Pyoungtaek would prefer clean cargoes to dirty ones. However, the Port of Pyoungtaek hinted that because steel companies, which often reguire a spotless environment, including POSCO, work in the second harbor, it is only proper to restrict its usage.

A working official in the forwarding industry asked Pyoungtaek City, "Most forwarders process more LCL consolidations rather than Full Container cargoes. So, if Pyoungtaek provides the best quality service for LCL cargoes, such as through its LCL warehouse, CFS reservations, and stevedoring equipment, shippers may naturally begin to use Pyoungtaek more."

He stressed that to attract more cargoes to Pyoungtaek, it is more important to equip the port with CFS and stevedoring facilities, competitive rates, and various trade routes than it is to follow port expansion plans.

In the mean time, Pyoungtaek revealed that it is pushing for a new Pyoungtaek Regional Maritime Affairs and Fisheries office rather than stay under the Inchon Regional Maritime Affairs and Fisheries office.a It is currently cooperating with the governor of Kyoung-gi province to this end. Also under discussion with MOCT (the Ministry of Construction and Transportation) are plans for an earlier than scheduled completion of dedicated highways for the Port of Pyoungtaek.

Pyoungtaek is operating 6 berths currently, and has another 4 berths under construction for the purpose of dispersing cargo congestion and building a base for trade with China. Construction of another 4 berths will start next year.