＂We will pour all our efforts to improve port facilities in Nampo,＂ says Kookyang

"Liner services between Inchon and Nampo may place importance on on-time service for fixed-day weekly services. As outdated stevedoring facilities cause delays at the Port of Nampo, we are going to focus on improving its port facilities after gaining approval from the Ministry of Unification by the end of this year," said executive director at Kookyang Shipping, Jong-shi Ha.

Kookyang Shipping, an affiliate of Sinokor Merchant Marine, has been involved in Inchon - Nampo liner services since February 2001. As the sole Korean-flagged carrier in the Inchon - Nampo service, Kookyang Shipping is progressing according to its last 10 months of experience. It is looking for methods to save on logistics costs and improve the logistics system.

As it requires over 6 billion won and needs government support, it is not clear for Kookyang Shipping whether it will be able to follow its original plan. Kookyang Shipping has invested in the Port of Nampo to serve a fixed-day weekly service. Unless outdated port facilities and logistic projects improve, it may end up frustrated by inefficient and profitless work, and fail to satisfy the fixed-day weekly service.

The Ministry of Unification permitted Kookyang to be involved in improving port facilities at the Port of Nampo as a North-South Korea cooperative business partner as of November 21.

Kookyang Shipping plans to invest 6.19 billion won for container stacking facilities. The biggest problem pointed out so far is the port facility and backward operation system in North Korea. The Port of Nampo, the leading container port in North Korea, has only one top-handler in the container stacking yard, which is commonly inoperable, making a weekly on-time service impossible.

Weak facilities in North Korea prohibit 40-foot equivalent containers and refrigerated containers from being served in the trade. Kookyang Shipping is planning for a crane equipped container vessels to be deployed and for minimum facilities, such as container stacking facilities and trailers, to be offered to North Korea. For this project, it will need financial support from the Nambuk cooperation fund, which offers a 3% yearly interest rate.

Mr. Ha stressed that the most important thing to stimulate inter-Korean business is that both governments work to create a competitive environment. Without government assistance, private shipping companies as well as domestic shippers simply cannot afford to work in the trade, he said. Due to a lack of container facilities, other foreign shipping companies are taking charge of FEU and refrigerated container cargoes. Kookyang vessel usually carries 400 TEU of cargoes monthly, operating a single 250 TEU vessel on a weekly schedule.