Pusan New Port Plan Reaches an Agreement with Private Capital

The Ministry of Maritime Affairs and Fisheries (MOMAF) has negotiated
with Pusan New Port Inc., a private port planner, and reached an agree
ment at last, said Roh Moo-hyun, minister of MOMAF at a press conferen
ce on September 14th.
The main difficulties were how big the construction should be, how to
set firm profits for the new port, and at what level are internal pro
fits appropriate.
Pusan New Port Plans needs a total of 550 million won (government bud
get: 170 million won, private capital: 380 million won) for constructi
on costs to build a 7.8 km long container quay with 24 berths.
As the first step, a 3.2 km long container quay (with 9 berths for 50
thousand ton vessels) will be built, at a cost of 229 million won.
MOMAF doesn't want to pay for detention and demurrage amounting to 30
0 billion won annually, which would bring about delays in the developm
ent of the new port. MOMAF and Pusan New Port Inc., agreed to complete
2 kms (with 6 berths for 50 thousand ton vessels) of the 3.2 km conta
iner quay by the first half of 2007. The rest will be discussed in 200
4.
If the first step were complete by September 2008, it would be possib
le for 8,000-10,000 TEU container vessels to call at the Port of Pusan
and 3.4 million TEU container cargoes would be handled annually.