KCTA pushes for port development in North Korea

In order to save itself in the wake of the introduction of the Port Authority System, the Korea Container Terminal Authority (KCTA) sought self-rescue plans to develop ports in North Korea and obtain ports abroad.

The KCTA reported building and driving for 5 new project plans such as port development in North Korea, marching into foreign ports, overseas logistic center development, and highly technological port and ocean development in a "final project presentation regarding long-term development strategies for the KCTA" in the KCTA meeting room on March 21.

The KCTA revealed that it will build three berths for 10,000 ton vessels and six berths for 20,000 ton vessels in eight ports in North Korea including Najin, Haejoo, Nampo, Hungnam and Wonsan. It will invest a total of 309 billion won by 2003 to develop Najin port in the first phase.

The KCTA is now considering raising some 112 billion won from the Inter-Korea Economy Cooperation Funds and Credit, 61 billion won from private development funds, and 106 billion won from issuing bonds.

While making inroads into overseas ports, it proposed to obtain hub port status by leasing or otherwise obtaining rights to operate through port development and to strengthen each port's network for five ports in China, two ports in Southeast Asia, two ports in India and/or the Middle east, and one port in Central and/or South America.

The overseas logistic center project will be preferentially enacted in China, Russia, Malaysia, Thailand, Mexico, and Chile from 2003 to 2010, and will join the logistic center development project in the Port of Shanghai, China by 2005.

In addition, it will also develop the ocean with 87.7 billion won by 2010.

The KCTA that has developed exclusively domestic container ports is now threatened with losing its role in the face of the current Kwangyang construction completion and the Port Authority's introduction in the main ports, Pusan and Inchon.

A KCTA official said that it is expecting to change the KCTA's role in connection with launching the Pusan Port Authority and privatizing ports. The KCTA will actively pursue new projects such as port development in North Korea, while continuously driving the Pusan New Port and Kwangyang development projects, he added.