Pyeongtaek Port Hinterland Phase 2 Project Stalls

The Phase 2 project for the Pyeongtaek Port hinterland has come to a sudden halt.

This is because the preliminary feasibility study conducted by the Ministry of Strategy and Finance last year resulted in a B/C ratio (benefit-cost ratio) of 1.0 or below, leading to failure in securing national funding.

According to Gyeonggi Province and Pyeongtaek Port Authority on the 5th, the 4.479 million square meters in the Naegang area of Sinryeong-ri, Poseung-eup, Pyeongtaek City was planned to be developed as a Pyeongtaek Port hinterland in three phases through 2020 in accordance with Pyeongtaek Port development.

Accordingly, the Phase 1 project (1.429 million square meters) recently completed infrastructure construction (sewage treatment facility to be completed in April), and is proceeding with Phase 2 project implementation.

The Phase 2 project with a scale of 1.199 million square meters is scheduled to be pursued from this year through 2015.

However, this project was excluded from implementation candidates in the preliminary feasibility study conducted by the Ministry of Strategy and Finance at the end of last year.

This was because the B/C ratio (benefit-cost ratio) required for project implementation did not reach 1.0 or above. Consequently, the project failed to secure national funding (192.2 billion won for Phases 2-3) necessary for project implementation.

The Pyeongtaek Port Authority is concerned that if this project is delayed, it will also impact Pyeongtaek Port development, and has decided to reapply for a preliminary feasibility study with the Ministry of Strategy and Finance around April.

The province plans to recommend early implementation of the Phase 2 project to the Ministry of Land, Infrastructure and Transport following the additional preliminary feasibility study.

An official at Pyeongtaek Port Authority stated, "The B/C ratio for the Phase 2 project did not reach 1.0 in the Ministry of Strategy and Finance's preliminary feasibility study at the end of last year, so we failed to secure national funding," and added, "Since Phase 1 leasing and sales are mostly completed, we plan to apply for an additional preliminary feasibility study from the Ministry of Strategy and Finance to proceed with the Phase 2 project."

Meanwhile, the Phase 1 project, which received 41 billion won in provincial funding, completed leasing and sales for 837,575 square meters (83.9% of 997,835 square meters) to 14 companies. Tenant companies can use the land for up to 50 years by paying only monthly rent of 500 won per square meter (for foreign-invested enterprises) or 700 won per square meter (for general enterprises).