State-run Incheon Port Authority (IPA) has announced a $2.2 billion expansion of South Korea's second biggest port of Incheon to specifically handle increasing trade with China.
IPA chief executive officer Suh Jung Ho said that expansion plans include the construction of new container facilities by 2013 to more than triple current container throughput.
Reports say that the Korean ports of Incheon, Busan and Gwangyang are already benefiting from a robust Chinese economy.
Incheon, for example, is benefiting from the fact that it is nearer to manufacturing hubs in northern China than Beijing or Shanghai.
Laptop and mobile phone manufacturers in northern Chinese provinces mostly ship products to Incheon for transshipment to the US, making Incheon the fastest-growing terminal in Korea.
One local analyst said that “the expanding Chinese economy will certainly offer Incheon port momentum...the planned terminal will help Incheon better compete with bigger rivals.”
According to Suh, China has overtaken the US as South Korea's biggest trade partner, while container throughput at Incheon has grown an impressive 20% over the past two years.
“That is the fastest growth among Korean ports, and that's why we need a new terminal,” said Suh.
Reports say that the Korean government will contribute close to one billion dollars for the expansion, while the IPA chips in about $600 million.
The remaining $600 million has been planned to come from investment sources such as port developers.
IPA chief executive officer Suh Jung Ho said that expansion plans include the construction of new container facilities by 2013 to more than triple current container throughput.
Reports say that the Korean ports of Incheon, Busan and Gwangyang are already benefiting from a robust Chinese economy.
Incheon, for example, is benefiting from the fact that it is nearer to manufacturing hubs in northern China than Beijing or Shanghai.
Laptop and mobile phone manufacturers in northern Chinese provinces mostly ship products to Incheon for transshipment to the US, making Incheon the fastest-growing terminal in Korea.
One local analyst said that “the expanding Chinese economy will certainly offer Incheon port momentum...the planned terminal will help Incheon better compete with bigger rivals.”
According to Suh, China has overtaken the US as South Korea's biggest trade partner, while container throughput at Incheon has grown an impressive 20% over the past two years.
“That is the fastest growth among Korean ports, and that's why we need a new terminal,” said Suh.
Reports say that the Korean government will contribute close to one billion dollars for the expansion, while the IPA chips in about $600 million.
The remaining $600 million has been planned to come from investment sources such as port developers.