South Korean logistics and deep-sea fishing conglomerate Dongwon Group, which is one of the bidders for HMM, has secured approximately US$280 million in financing from KDB Smart Ocean Infrastructure Fund, a scheme led by state-controlled policy lender Korea Development Bank (KDB).
The funds will be used to operate a new container terminal under Phases 2-5 and 2-6 of Busan New Port’s West Container Terminal, which upon its opening in the first half of 2024, will be the country’s first fully automated pier.
The KDB Smart Ocean Infrastructure Fund program offers funding of up to US$1.2 billion and supports projects such as port automation, port hinterland, and smart logistics. KDB provides up to US$840 million, with the rest of the funds coming from Korea Ocean Business Corporation and Busan Bank.
KDB and KOBC will each provide funding of US$83 million for West Container Terminal, while Busan Bank will contribute US$15 million.
In August 2021, a Dongwon-led consortium was chosen by Busan Port Authority (BPA) to operate the West Container Terminal. Dongwon proposed to transfer all manpower and annual volumes currently handled at its existing Gamman terminal in Busan North Port to West Container Terminal. The volumes amount to 1 million TEU. Dongwon also operates two multi-purpose terminals, one each in Busan North Port and Busan New Port. Also active in the logistics business, Dongwon is eyeing synergies by acquiring the state’s controlling stake in HMM.
West Container Pier was originally intended to open in October this year, but due to delays in the development of an autonomous guided vehicle (AGV) operating system, the opening was postponed.
VDL Groep of the Netherlands, an AGV manufacturer, and South Korean plant maker Hyundai Rotem have delivered eight AGV units, which will be tested for several months after construction on West Container Terminal is completed in October. Once it has been confirmed that the AGVs are working well, West Container Pier can be opened. Phase 2-5 saw nine container cranes and 46 transfer cranes installed, while phase 2-6 will see six container cranes and 34 transfer cranes installed. The cranes were produced by Hyundai Samho Heavy Industries, HJ Shipbuilding & Construction and Doosan Heavy Industries.
Martina Li
Asia Correspondent
