Ssangyong Motor

South Korea plans to modernize its port facilities and streamline their operations in an effort to attract

more foreign shipping lines and become a logistics hub of Northeast Asia, officials said Wednesday.

"The plan is designed to promote a profitable logistics industry, a turnaround from simply competing with

Japan and China for bigger amounts of cargo in Northeast Asia," said Woo Ye-jong, a senior official at the

Ministry of Maritime Affairs & Fisheries. Under the plan, the government will revamp ports' infrastructure

by setting up an automated operation system, enhancing security standards and lifting a ban on nighttime

operations. To spur Chinese and Japanese investments in the domestic logistics industry, the government

will move to ease regulations on hiring foreign stevedores and to complete clearing sites for cargo terminals

in the ports of Busan and Gwangyang ahead of schedule. The government will also establish a system on

financial aid for mergers and acquisitions among local port operators and try to nurture

internationally-renowned logistics firms like Hong Kong's Hutchison Whampoa Ltd. and the Middle East's

Dubai Ports World. Efforts will also be made to hold ministerial-level talks on logistics among South Korea,

Japan and China regularly to boost cooperation among the countries. The first round is slated for September

this year. The ministry said the government will also seek the participation of Russia and the Association of

Southeast Asian Nations.

- Source from YONHAP NEWS(Jun 7, 2006)