Cargo transportation system to be revised

High voices urging the government to reform the domestic cargo transportation system from the ground up surged when the Trucker? Federation strike broke out August 21st, a mere three months after the May strike.
According to the Ministry of Construction and Transportation (MOCT), the government is planning to prepare a revised cargo transportation plan with the help of a logistic task force team. The revised plan will focus on solving unfair trade practices in the trucking business and imbalances between demand and supply for trucks. The plan is scheduled to be published by the end of September.
The government also tried to introduce an individual registration system (individual truck driver/proprietor) in early 2004, fostering total logistic service companies and considering switchover to a license system for the cargo moving industry.
The Korea Transport Institute proclaimed in its project report recently that individually owned trucks will need registration for a business license from next January in order to do away with unfair practices in the current transport system. If individual truck drivers are allowed to register, the truck owner/operator can be protected from unfair businesses practices such as illegal mediation cost payments and property right exercises. Still now, truck owner/operators haven? been recognized as independent proprietors and have to belong to another transport company. The driver has to pay money to the company to carry cargoes.
MOCT will submit the revised trucker? bill to the General Assembly during the fall session. On the other hand, some worries concerning oversupply if each owner/operator becomes his own proprietor.
Total logistic service companies will be newly introduced with proper facilities and equipment. These companies will do business with shippers directly without any interruptions. The overall logistic services from transportation, storage, and stevedoring up to information services will improve the quality of cargo transport.
MOCT is studying how to provide incentives to exempt land tax and property tax for grounds and buildings which total logistic service companies leases or own to foster the industry. Cargo terminals have benefited from a 50% cut in land tax for the past five years.
The license system will be introduced to curtail the imbalance between demand and supply in the cargo transportation market. Besides current registration standards, there would be another standard such as a proper business plan, professionalism, credibility, and financial stability. Some, however, pointed out that if the system switchover to a license system from a registration system may go the reverse the way of the government policy, and increase the supply for the short term.