By 2030, 2 Trillion Won Invested in Port Hinterland Complexes... Added Value of 5.5 Trillion Won

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Dongwoo Lee] The government will invest 2 trillion won by 2030 to develop port hinterland complexes into core industrial spaces. A hydrogen liquefaction and storage facility will be established in the Ulsan Port hinterland complex to realize a hydrogen complex. The plan also includes easing regulations on facilities in Type 2 port hinterland complexes to promote private sector activation.

On the 16th, the Ministry of Oceans and Fisheries announced the finalization and notification of the "2023-2030 4th Comprehensive Plan for Port Hinterland Complex Development," which contains these details. The ministry will invest a total of 2.0279 trillion won, including 565.5 billion won in government funds and 1.4861 trillion won in private investment, to develop port hinterland complexes by 2030. Through this, the added value from development is expected to increase to 5.5955 trillion won, and employment creation is projected to reach 88,635 jobs. A port hinterland complex refers to an area adjacent to a port that supports port functions and serves as a complex logistics hub for processing, assembling, storing, and shipping goods.

The core of this comprehensive plan for port hinterland complex development is to foster these complexes as core industrial spaces that create added value and jobs. To this end, the plan focuses on strategies such as ▲ sufficient supply of port hinterland complexes tailored to port development and demand ▲ creation of cutting-edge, eco-friendly smart green port hinterland complexes ▲ development and operation of hinterland complexes favorable for businesses.

The ministry will first promote sufficient supply of port hinterland complexes according to the demand of companies wishing to operate near ports. An area of 267,000㎡ of Type 2 port hinterland complexes will be converted to Type 1 to actively respond to demand in regions with high port cargo volumes. Type 1 port hinterland complexes include complex logistics manufacturing facilities, business convenience facilities, research and venture facilities, while Type 2 includes residential facilities and general business facilities. Additionally, plans to designate inland sites in preparation for increased demand due to the construction of Jinhae New Port are being reviewed. In the case of Incheon New Port, 1.57 million㎡ of new port hinterland complexes will be supplied to prepare for increased demand following the expansion of container handling share.

Smart and eco-friendly elements will be introduced to port hinterland complexes. At Ulsan Port hinterland complex, hydrogen liquefaction and storage facilities linked with liquefied natural gas (LNG) import and bunkering terminals will be established to realize a full-fledged hydrogen complex. Furthermore, a smart joint logistics center will be established in the port hinterland complex to provide future logistics infrastructure such as automated transfer and storage and real-time inventory management analyzed by artificial intelligence (AI) to capable small and medium-sized enterprises. To enable efficient cargo transport between container ports and hinterland complexes, demonstration of eco-friendly electric-powered unmanned cargo tram technology will be pursued.

Finally, regulations on the development and operation of port hinterland complexes will be improved. Regulations on Type 2 hinterland complexes will be shifted from a closed (positive) system to an open (negative) system to strengthen private investment. Currently, only facilities specified by law such as residential and sales facilities can be installed in Type 2 hinterland complexes, but going forward, all facilities except hazardous and harmful ones will be allowed. The 10-year transfer restriction regulation, which has been pointed out as a difficulty for facilities in Type 2 port hinterland complexes, will be excluded to prevent delays in sales after facility completion.

The ministry plans to promptly propose a partial amendment bill to the "Port Act" including regulatory innovations such as exclusion of transfer restrictions on Type 2 port hinterland complex facilities and complete legislation by the first half of next year. It also plans to promptly revise guidelines such as management regulations for Type 1 port hinterland complexes. The ministry forecasts that by expanding the hinterland complexes of eight ports nationwide from the current 15.69 million㎡ to 31.26 million㎡ (10.8 times the size of Yeouido) by 2030, the number of resident companies will increase from 233 to 480, and handled cargo volume will increase by 46% from 3.67 million TEU (1 TEU equals one 20-foot container) to 5.35 million TEU.

Cho Seung-hwan, Minister of Oceans and Fisheries, said, "We plan to focus not only on timely supplying port hinterland complexes according to field demand but also on making them smart and eco-friendly. We will do our best in follow-up measures to ensure this comprehensive plan is implemented smoothly in the field."

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