Local Government / Incheon Port Authority Buoyed by commerce increase with China as well as North Korea's economic opening, Incheon Port's relative importance as a back-up port is being watched. Actually over the last 5 years, China has emerged to be the largest commerce counterpart for Korea. As the Chinese economy grows the country will remain as the largest trade partner for us in the years to come. For Incheon, there are many geographical advantages in doing commerce with China, president Suh Jungho, Incheon Port Authority, says in an interview to assess the first year after the Authority's establishment on July last year. He cites that over a half of our country's population are living at the rear economic circles of Incheon including the Metropolitan area, South Chungcheong province as well as North Chungcheong province, Kyunggi province, and Kangwon province. If furthermore, North Korea comes to be opened economically, the sole port in South Korea which could accept cargos from North Korea's southern area, some of which will include Gaesung, Nampo, and Pyeongyang, will be Incheon Port, Suh predicts. Provided that economic collaboration between North and South Korea begins in earnest, Incheon Port will be spotlighted anew as a hub of commerce with North Korea, Suh is confident. At present Incheon Port is establishing a regular container route with North Korea's Nampo port solely among nationwide trade ports, according to Suh. It is reported that already at the beginning of this year, products manufactured in Gaesung industrial complex were exported to abroad for the first time through Incheon Port. Though the amount of materials still is small, Incheon Port is expected to play a window role for imports and exports of Gaesung industrial complex as bilateral economic exchange is activated even more, Suh said. Conversion into user-oriented outlook With the first Anniversary of Incheon Port Authority as an impetus, the president stresses: "Our Authority is aware of the importance of the fact that a port is not a supplier-oriented facility anymore, but if nowadays users don't choose a port, the port cannot but go to ruin." President Suh who underscores that over the past one year, Incheon Port Authority's organization has been stabilized and it must become an important port in the pan-Yellow Sea circles by boosting its competitiveness, points out in that respect that Incheon Port holds tasks in terms of both software and hardware. First in the light of software side, Suh said that Incheon Port gives conviction to the users that logistics cost is required less at Incheon by accelerating efforts to change port service's standpoint. Therefore, peoples' minds who tow or load at Incheon Port, has been applying spurs to introducing market economy's principle to meet customer's needs in the meanwhile and as a result, the amount of materials of container dealing is on the rise, posting 23% increase last year in comparison with the preceding year and 25% increase till this August respectively. From the standpoint of hardware side too, in addition to unfavorable locations which deviated from a global trunk line route in the past, Incheon Port contained port operation through a floodgate and superannuated cargo equipment as its vulnerable point, he concedes. Furthermore, it is a reality that Incheon Port's infra is inferior relatively in comparison with neighboring China's Qingdao port, & Tientsin port to say nothing of Busan Port, & Kwangyang port due to the government's relative indifference in terms of investment priority, he pointed out. However since 2004, Incheon Port's port infra is developing fast, Suh expressed confidence about its future, adding that with the development of Northern China market, geographical advantages happened and modern container exclusive terminals are being built one after another including Incheon container terminal on 2004 and Sun-Kwang container terminal on 2005. If Incheon New Port is completed till the forthcoming 2011 among others, Suh said that he is confident Incheon Port's harbour infra will be able to equip with sufficient competitiveness. Provided near advantage with China in addition to this, and Incheon Port's peculiar cutting-edge such as adjacency to huge metropolitan circle market plus a gate role for commerce with North Korea are combined, Incheon Port's competitiveness can't be neglected assuredly, he underlined. Better IT management skill than China In conjunction with this, the president emphasizes the importance of Incheon Port's role for the activation of foreigner investment inducement. He further stressed that he believes Incheon Port's help is absolute in order for Incheon to spring into an international city, adding that particularly, Songdo New City and Incheon New Port is a relation of groups sharing a common destiny. In order for Songdo New City to function as an international city, a state-ofthe- art port's existence which can support logistics' trend, must be backed. In that context, the president said that Incheon Port Authority holds a plan to nurture the rear site of Incheon New Port amounting to 3 million pyeong (around 9.9 million square meters) as a logistics cluster by inducing international logistic enterprises like DHL, adding that this logistics cluster will reinforce Songdo New City's function even more. In relation to Incheon Port's strong point in inducing such international logistics enterprises in comparison with China's Tsingtao or Talien, whose land price or labor cost are much cheaper than Korea, Suh explains: "We are superior than China's competing cities in terms of software side like IT management skill," adding that to keep our competition superior element continuously, we should present more favorable conditions. After Incheon Port Authority concentrated its efforts on consolidating its management foothold in the short run, the Authority plans to nurture Incheon Port as a stronghold port in the pan-Yellow Sea circles by completing port infra expansion projects such as Incheon New Port and international passenger terminal by the upcoming 2011.