PCCI proposes industrial rates for logistic electricity

Electricity for logistic facilities, including container terminals, should be transferred to the industrial category from the current general category, the Pusan Chamber of Commerce and Industry (PCCI) petitioned on September 5.
PCCI pointed out that though logistic facilities support the production process, they have been charged general electricity rates, which is 42% higher than industrial rates, undermining their competitive power. The total power consumption for Pusan port and Kwangyang container terminal was as much as 6.13 billion won last year. However, it amounted to 4.83 billion won at the industrial rate, 1.3 billion won less. PCCI asserted that this difference should go over to shippers, increasing logistic costs and production prices.
The PCCI claimed that as Korean logistic costs, 12.8% of the GDP (Gross Domestic Production) is higher than the US (10%) and Japan (9.59%), the industrial electricity rate for container terminals and warehouses would help save on logistic costs. They also said that a scheduled 10.7% increase in industrial rates by 2004 would weaken business competitiveness and that the current rates system be kept.