Registration for Port Service Businesses Now Possible Without Ships, Including Tugboat Operations

Amendment to the Enforcement Decree of the Port Transportation Business Act Passed at the Cabinet Meeting

[Sejong=Asia Economy Reporter Joo Sang-don] Going forward, businesses such as stevedoring and cargo securing will be able to register for port service operations without owning vessels.

The Ministry of Oceans and Fisheries announced that the amendment to the "Port Transportation Business Act Enforcement Decree," which includes this provision, passed the Cabinet meeting review on the 5th and will be implemented immediately.

Until now, to register for port service operations, regardless of the business type, companies had to meet the capital and vessel requirements set for each port under the Port Transportation Business Act Enforcement Decree. Although there was a provision allowing relaxation of facility standards for each port when vessels were not necessarily required due to unavoidable reasons, the criteria for applying this provision were unclear in practice. As a result, there were continuous cases where vessels were demanded even when registering businesses like stevedoring that do not require vessels.

In response, the Ministry of Oceans and Fisheries revised the Enforcement Decree of the Port Transportation Business Act to clearly stipulate that vessel requirements will not apply when registering for port service businesses except for tugboat and water supply services, which necessarily require vessels. Additionally, in cases where vessels are exceptionally needed for specific business types such as security services due to the characteristics of the port, the head of the local Maritime Affairs and Fisheries Office or the mayor/governor in charge of the port must pre-establish and announce registration standards.

This amendment also improved the registration standards for the ship fuel supply business. Originally, the ship fuel supply business could only be registered with vessels (bunkering ships), but in 2016, regulatory improvements allowed registration with tank lorry vehicles. However, when registering with tank lorry vehicles, unlike vessels, vehicles leased (exclusively used) for more than one year were not recognized as registration targets, causing inconvenience. While vessels leased for over one year were recognized as registration targets, this was not applied to tank lorry vehicles capable of long-term lease contracts, resulting in fairness issues even when utilized. With this Enforcement Decree amendment, tank lorry vehicles that can be leased (exclusively used) for more than one year will now be recognized as registration targets.

Lim Young-hoon, Director of Port Operations at the Ministry of Oceans and Fisheries, said, "Through this amendment to the Port Transportation Business Act Enforcement Decree, we hope to reduce the burden on port-related industries struggling due to the COVID-19 pandemic and contribute to the development of our ports by easing excessive regulations."

This content was produced with the assistance of AI translation services.