(Interview) Inchon CFZ in first half this year part II

Minister of Inchon Regional Maritime Affairs and Fisheries, Seoung-kyu Kim

KSG: What are the main policies for settling Inchon as a hub port on the western coast of Korea this year and for revamping the competitiveness of the port?

Kim: As enclosed locks in the Port of Inchon have reduced its competitiveness in the wake of the increased burden of port usage fees, there are requests to develop the outer harbor. Concerning the launch of Inchon International Airport, we are trying to set up a network to connect Inchon harbor with the air port terminal to focus on Chinese sea & air freight, giving them customs clearance processes en bloc.
Replacing the out-of-date docks would create a friendly environment and attract high?value added cargoes. We are also trying to stimulate the port with a CFZ (Customs Free Zone) in the first half this year. In confronting opening container trades toward China and inter-Korea business cooperation, we have to expand our maritime logistic networks.

KSG: What do you think are the most urgent matters Inchon has confronted?

Kim: The Port of Inchon has been acting as a gateway to China for metropolitan area shippers, including Seoul. However, it lacks proper port facilities. We are expecting cargoes to double to 214 million tons by 2011, but facilities in the port will only support 69% of that load. The port also has a 6% demurrage rate.

KSG: To develop the Port of Inchon as a hub port on the western coast, you are attracting private capital. Could you explain this in more detail?

Kim: Inchon has been developed as a logistic hub port. We are planning to build this port centered on the future to prepare for the 22nd century. It will become a space harmonized with the city and working as a total logistic and hub-information spot.
In order to specialize its functions for each terminal, the docks will handle container, cars, and general commodities, the northern harbor will be used for raw materials such as timber and steel, the southern harbor for near-sea going cargoes and containers, and the southern outer-new port will be developed as a total logistic handling area to prepare for future demands.
We are building container terminals with private capital. The Inchon Container Terminal Co., Ltd., a joint venture of the Samsung Corporation and PSA, is investing $200 million in the project. The general terminal in the southern port is under way to change four berths for 5,000 tons vessels into two berths for 18,000 ton vessels. Sunkwang Corp is expecting to join this project. Weidong Ferry is constructing the second international passenger ferry terminal in the inner harbor with KRW 9.6 billion.
INI Steel and Dongkuk Steel together are going to build a steel wharf with three berths for 50,000 ton vessels, starting this May and finishing in March, 2006.
The multiplex terminal in the northern harbor with three berths for 50,000 ton vessels is scheduled to start construction this December by the Inchon Northern Harbor Corporation, a company 100% owned by the Dongbu Corporation.

KSG: What are your driving policies to maintain an advanced port management system in the port and to make clean and clear environment here?

Kim: ?We are actively driving now to make the port a more comfortable environment. So far we have built a dust wall, dust net, and a sprinkler truck to lessen dust, but there are still lots of civil petitions regarding noise from those machines as well as dust. Accordingly, we are going to set up an automatic alarm system within the docks and reform stevedoring methods for dirty cargoes.
In addition, we are going to increase handling capacities for waste matter produced by the port. More port facilities will be added to move dirty cargoes in the dock to the northern harbor.
To settle on a firmly advanced harbor management system, we are eagerly pushing for designation of the port as a Customs Free Zone (CFZ). In the first half 2002, we are designing the plans for CFZ introduction.
Though the port area under Inchon Regional Maritime Affairs and Fisheries is equipped with its own containment facilities for a CFZ, the fourth harbor is under the control of the City of Inchon, and they still need to come up with the 4.47 billion won it will take for containment facilities there. I will focus only on CFZ introduction for the port this year as promised by the President. When designated as CFZ, the Port of Inchon will be a total logistic complex and be expected to stimulate related industries such as trading and financing.

KSG: How would you make the operation of the Port of Pyoungtaek more efficient?

Kim: We are going to build a CIQ (Custom Immigration Quarantine) building to offer more efficient operation, as the absence of a CIQ has caused inconveniences at the port. This coming May, we will complete construction. The eastern harbor in the Port of Pyoungtaek will also be reconsidered on its operational efficiency. From May 2001 when Kia Motors moved their loading port to Pyoungtaek from Inchon, which handled 250,000 cars on a yearly basis, there have been problems in handling liquid cargoes. One more loading team will be added to improve stevedoring capacity and the second berth will be used temporarily to help liquid cargoes.

KSG: Could you explain any special plans to connect sea and air transportation systems, specifically those related to Inchon International Airport?

Kim: With the launch of Inchon International Airport last year, Inchon can provide enough sea & air transportation system compared to nearby countries. It could be placed in a relatively favorable position, surrounded by China, which is suffering from a lack of air transportation infrastructure, as well as Japan, which is extremely costly.
We also expect north-east Asian cargoes to rapidly increase in the wake of China’s entrance to the WTO.
Therefore, in order to bolster Inchon International Airport and the Port of Inchon, we will push to open a new car-ferry trade and build a second bridge. To draw more cargoes from China, regular container trade openness is also under consideration between Inchon and China.
In addition, we will build a container-dedicated terminal to support sea and air transportation systems with consideration for a suitable site and size in the Inchon/Youngjong-do island area.
Hinterlands and total information systems will be secured, establishing the port marketing strategies. To support all of these plans, we are planning to secure the budget in the second half of 2002.

KSG: What are your strategy directions for establishing a port stability management system?

Kim: By examining bodies and engines of all foreign vessels in the Port of Inchon and checking crews’ abilities to pass international standards, we are pursuing a stable sea environment and human safety.