5.8 C
Thursday, April 18, 2024
Home Port News E-commerce zone for Incheon Port

E-commerce zone for Incheon Port

South Korea’s Ministry of Oceans and Fisheries (MOF) has designated a special zone in Incheon Port to cater to growing container shipments of goods purchased through e-commerce.

The move, mirroring similar developments in Taiwan and China, reflects the recent growth of online retail sales, due to lockdowns caused by the Covid-19 pandemic.

The e-commerce zone occupies an area of 250,000m2 within Incheon port’s Aam Logistics Complex 2.

MOF said that it is appropriate for Incheon Port, which has been marketed as a gateway into metropolitan Seoul, due to it having an express customs clearance system, its proximity to Incheon International Airport, as well as a ro-ro passenger/cargo transport service to China.

Incheon Port Authority will select tenants for the special zone through a public offering method, in order to make it more attractive to global e-commerce players. Tenants will also be offered discounted rentals and other incentives.

Tenants have to submit business proposals and applicants will be selected by year-end. Construction of a distribution centre in the zone is expected to start in the later part of 2021.

MOF predicts that the special zone can attract about 50,000TEU of new cargo annually, attract about KRW360 billion (US$303.07 million) of private investments, both of which could create 500 new jobs.

In addition, it is expected that logistics cost will be reduced by about 46% if companies in the special zone establish a global distribution system exclusively for e-commerce freight and use sea and air transport.

MOF want South Korea to lead the e-commerce market, a statement said, “The demand for maritime transportation to ship goods purchased through e-commerce is expected to grow, as such the variety of such goods has expanded, from small items such as cosmetics, to bulky items such as television sets and furniture.”

Martina Li
Asia Correspondent

Latest Posts

Singapore Shipping Association unveils tool to enhance cyber risk management

Singapore Shipping Association (SSA), a trade association advocating for the interests of over 500 Singapore-based companies involved in ship owning, operating, and maritime services,...

MSC applies new prices from Far East to Europe

Swiss/Italian container carrier MSC will implement the following new Freight All Kind (FAK) rates from Asia to Europe. Effective as from 1 May but not...

Port of Antwerp-Bruges handles over 3.2 million TEUs in first quarter

The Port of Antwerp-Bruges said that despite the ongoing complexities in geopolitics and macroeconomics, its volume growth, primarily driven by a resurgence in container...

Port of Rotterdam achieves 10% CO2 emission reduction in 2023

In 2023, there was a 10% reduction in CO2 emissions at the port of Rotterdam compared to 2022, amounting to a decrease of 2.2...

ONE and Portchain ink deal to drive sustainability

In the fall of 2023, Ocean Network Express (ONE) partnered with Portchain to focus efforts on enhancing collaboration with container terminals through the innovative...