KCTA worried about leasing logistic complex in Gwangyang Port

The Korea Container Authority (KCA) has been concerned about leasing an area of about 100,000 square meters at the Gwayngyang Port logistic complex.
Though the KCA tried to sell the ground by public tender on August 19th, it failed to receive even one bidder. In early demand inquiries for the industrial grounds from the end of last year to early this year, over 9 companies expressed interest in the grounds. The KCA has prepared to obtain early permission to use the grounds before completion scheduled for the end of November. As domestic Korean business, however, turned down, huge risks being taken and only 3 year terms being available, no company took part in the bidding. The KCA explained that failing to have even one bidder was attributed to restrictions such as usage periods, and not lease fees.
It costs the operating company 4,950 won to lease each square meter of ground and the company has to cover all the operation costs.
The KCA is considering a re-bidding or lowering the costs now that grounds of 100,000 square meters have been vacant for the past three years.
The industrial complex started construction three years ago to build empty container yards. However, as volume growth rates for Gwangyang port didn’t show enough that terminal operating companies could just handle the traffic in their current container yards. The KCA is looking for companies to run the logistic complex for the next three years.