Pyoungtaek to concentrate on playing pivotal role with China

Korea Shipping Gazette (KSG): Thank for giving us time for this interview while you have been so busy. We have noticed that Pyoungtaek is likely to lead in the West Sea in the 21st century. Understanding the importance of Pyoungtaek location, its role might be increasing. Could you tell me what your highest priority for the Port of Pyoungtaek development strategy is?

Kim Sun-ki, Mayor of Pyoungtaek: The city of Pyoungtaek is focused on developing as a logistics hub port and major trade center for Northeast Asia in the 21st century. The purpose of the Port of Pyoungtaek is to gear up for port construction. Currently, the Port of Pyoungtaek is operating 15 berths, with an additional 2 berths, capable of accommodating 30,000-ton vessels to be completed by this June. We are doing our best for the port to be on track. We have kicked off construction for a fifth berth in the general wharf, with the help of POSCO, and called on Hyundai Motors to develop two additional berths for 30,000-ton vessels. In addition, three berths in the East Terminal, originally planned for construction with private capital, have garnered government support, acquiring 5 billion won this year.

In the second phase of the development project, we are trying to raise private and foreign capital for the Posung Industrial Complex dedicated terminals and to complete earlier the West Terminal for 30,000-ton vessels.

Last November, we opened the direct container trade bound for Hong Kong and Qingdao. We are going to increase calling frequencies and find out about opening various China services including Tianjin.

This July we are going to launch the service between Pyoungtaek and Rongyan, and keep adding extra car-ferry services to Rizhao, Dalian, and Qinhuangdao. For all of these services, we are under way to build an international passenger terminal of 1,489 pyoung, scheduled for completion by the end of June.

Also, we are driving to establish a logistic complex to handle logistics, industry, and commercial business. Above all, we are cautiously considering applying for Tax Free Zone.

― KSG: Pyoungtaek has being developed as a state-supply port since it first opened to LNG vessels in 1986. This port seems to be in competition as well as complementary cooperation with the Port of Inchon because of its geographical location. Pyoungtaek is considered to supply differentiated port services and to supplement port facilities.

Mayor Kim: I agree with you that its facilities and port services are below satisfactory levels. However, we are building a CIQ (Customs, Immigration, and Quarantine) office to provide one-stop customs clearance services. And we are also going to complete mid and long-term commercial railway projects earlier than expected to help inland and port facilities connections.

- KSG: The Port of Pyoungtaek is preparing to be a hub port for Chinese trade with container services. And car-ferry services are also known to launch. At present, the Port of Inchon allows only car-ferry liners to carry container cargoes, not container liners. I know that Pyoungtaek is an emerging container port for trade with China. What are your plans for container liners and boddari-traders (small luggage traders)?


- Mayor Kim: Boddari-traders are operating in private or small group units. We are taking under consideration finishing the international passenger terminal and running shuttle buses for the convenience of boddari-traders. And for all kinds of traders and tourists, we are thinking about developing a logistics and distribution complex and a leisure sports town. To lure container liners, we are pushing for launching extra trades and acquiring dedicated terminals and facilities.

―KSG: Compared with other domestic ports, what benefits are there for shippers or shipping lines?

- Mayor Kim: For shippers, wharfage and container tax will be totally exempted. This exemption will help shippers to save on port facility costs worth 6.3 million won based on entering cargoes of 30,000 tons and clearing cargoes of 5,000 tons. And compared with Inchon and Kunsan, inland transportation bound for the capital and central regions will be shortened and save 49.9 percent and 56.0 percent of costs, respectively.
For shipping liners, port dues, anchorage charges, and berthing fees will be 100 percent exempt, and vessel operation times might be shortened without detentions and stock accumulations. If 30,000-ton vessels are moored [RS4]for 4 days, 24 million won in logistic costs may be cut.

―KSG: Most of all, to continue developing as a competitive port for trade with China, it is vitally important to cooperate with the port union and to have an efficient port operating system. What are you doing to make the operating systems efficient and cooperate with the port union?

- Mayor Kim: At present, the operation of Pyoungtaek has been under the control of the Pyoungtaek Harboring Co., which consists of six companies such as Korea Express since September 1997. However, we found many problems in operating ports, and now we are pushing to form a new corporation to handle development and management concerns; the province of Kyoung-gi and the city of Pyoungtaek are investing this together. Also, we have been encountering conflicts with Kyoung-in Union flexibility.

- KSG: I know that the blueprint for the Port of Pyoungtaek is well known. Could be more specific about this?

- Mayor Kim: We predict that Pyoungtaek might handle 110 million tons of cargoes in 2020, and that port facilities will be required for 80 million tons and container cargoes from feeders will be above 500 thousand TEU.
If the port development project is completed in 2011, with the completion of 62 berths and the capacity to stevedore 62 million ton of cargoes annually, Pyoungtaek will become a hub-port in international trade. Pyoungtae k will be equipped with industrial complexes, further developments for container and car-ferry trades, as well as railways and highways.
Infrastructure establishment is also just as important as port and logistic centers. For this, we will continuously push to digitalize the port operation systems and register as TFZ.

- KSG: It's been a pleasure speaking with you. Thank-you for sharing with us.