Kookyang Shipping steps into Nampo stevedoring facilities renovation

Kookyang Shipping, a regular operator between Inchon and Nampo, is drawing attention as it recently disclosed that it will invest in the Port of Nampo in North Korea. The Port of Nampo needs the funds to improve its outdated facilities.

The Ministry of Unification permitted Kookyang Shipping to get involved in the stevedoring facilities renovation and other maritime affairs at the Port of Nampo on November 21.

According to the ministry, Kookyang Shipping is planning to invest 6.19 billion won to purchase container vessels with onboard cranes to deploy in the trade and to offer stevedoring facilities to the Kaesun Trading Company, Kookyang's counterpart in North Korea.

Regarding this, the North Korean government will allow Kookyang Shipping to fasten its stevedoring service, and will offer Kookyang preferential vessel operation rights and dedicated berth usage rights in exchange.

Kookyang Shipping received permission to serve in the Inchon and Nampo trade last February and is currently trying to lower logistic costs through business expansion.

The executive director at Kookyang Shipping, Jong-si Ha said, "It is more difficult to offer a weekly service to Nampo port without reshuffling facilities because the facilities at Nampo are falling behind more than we originally expected. We desperately need government assistance for this investment."

In the mean while, the Ministry of Unification revealed its support for fast stevedoring work by providing container stacking facilities and trailers to North Korea. It also said that it would seriously consider supplying a North-South reconciliation fund to Kookyang Shipping, if Kookyang applies for it.