Container Terminal Negotiation

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Lease of the Jaseongdae Container Terminal at the Port of Busan is to expire in four months, but the talks to extend its use have been dragging on for a year. Logistics companies using Busan Port are growing anxious over the stalling negotiation.

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The Jaseongdae Container Terminal at the Port of Busan processes 10% of all goods transported through the port. Global port operator Hutchison Korea Terminals has been renting it since 2002. But the lease on the Jaseongdae Terminal is set to expire at the end of June. It's only four months away, but there has yet to be a decision on a lease extension or an expiration of the contract.Hutchison Korea Terminals claims that it had sent a letter asking for a 20-year extension on its lease to the Busan Port Authority in March of 2018, but hasn't received any answer in nearly a year. That's because the Jaseongdae Terminal is included in the second stage Busan Port redevelopment plan. Hutchison Korea says there's no reason to not use the available terminal. It wants to extend the lease first and, if the redevelopment plan is finalized, is willing to use the site according to the Port Act. The Busan Port Authority said that it would present its official position shortly, following the Ministry of Oceans and Fisheries' policy decision. Shipping companies using the terminal are growing anxious as the negotiation stalls.

[Soundbite] Jeong Gyu-seok(Busan Office Head, Korea Marine Transport Co.) : "If the terminal shuts down suddenly, shipping companies will incur great losses because we won't have time to make new plans."

The port distribution sector, which requires a stable securing of berths, is calling for a quick resolution to the negotiation to avert further confusion.