First phase of Pusan New Port entrusted to CSXWT

The CSX World Terminal (CSXWT) in the US was finally commissioned for the first phase private capital projects in the Pusan New Port.

The Ministry of Maritime Affairs and Fisheries announced on January 8 that it approved the Pusan New Port Co., consisting of 13 enterprises, including Samsung, to entrust CSXWT for operating the container terminal in Pusan New Port. CSXWT will handle 6 berths of 2 km in length, scheduled for completion by 2006, and will be guaranteed for 30 years among the first phase of 9 berths.

The Pusan New Port Co. has preferentially negotiated with CSXWT since last June, after seeking an overseas port operating company to take over the remaining shares of the Pusan New Port Co. CSXWT is planning to invest 60 million dollars to take over 24.5% of the Pusan New Port shares.

CSXWT is a port operating company, an affiliated company of CSX, a well-known global transportation company. It recorded 440 million dollars in sales and 79 million dollars in net profits in 1999, operating terminals in Hong Kong, Austria, and Germany.

An officer from MOMAF said, “We expect the CSXWT to introduce advanced port management skills. This will be helpful to attract foreign capital of 300 million dollars.”