Ocean liners start to transport domestic ports

Between domestic ports import-export container cargo transportation, previously banned for ocean liners, may be allowed from next month as well as for costal liners.

MOMAF announced October 16 that they would submit a revised bill regarding shipping laws. The main thrust of the bill will be to allow transporting import-export container cargoes between domestic ports by ocean liner. The bill was submitted to the National Assembly October 18.

To date, import-export container transportation between domestic ports such as Inchon-Pusan, Kwangyang-Inchon has been permitted for trucking and rail companies only, such as Hanjin Shipping, but from now on, ocean liner cargo transportation businesses will be permitted as well.

It will also be possible to domestically handle import-export container cargoes which have been handled as transshipment cargoes through nearby ports in other countries such as Hong Kong, Kobe in Japan, etc.

One MOMAF insider said, "We wanted to push a revised bill to solve land-traffic congestion as most import-export container cargoes destined for or from the capital area

depend on land transportation." He went on to add, "Among import-export container cargoes that appear in the capital area, 1,950,000 TEU a year, about 125,000 TEU will be delivered by marine transport, saving transportation costs of about 22.6 billion won a year.

He added, "Shipper's transportation costs will decrease because about 45,000 TEU cargoes could be handled in domestic ports from 187,000 TEU import-export containers currently handled as transshipment cargoes through the foreign ports."