Development and Operation of

Ta b le

General Situation

Facility & Equipment

Occupants

Working Process

Functions & Effects of ICD

Consideration of PPP
- 1 -

Korea
Bhutan
China
Japan

Myanmar

Laos

Thailand
Cambodia

Map of Asia
- 2 -

Seoul
Uiwang ICD

Busan Port

Map of Korea
- 3 -

Railroad
Station

Highway

Highway

General view of Uiwang Inland Container Depot

- 4 -

Repair Shop

Gas Station

Station

Building

Terminal 1
CFS
CY

Terminal 2
Railroad
Auto Maint. Shop

Expressway
CFS

Map of Uiwang Inland Container Depot

- 5 -

Purpose of Establishment
Strengthening national competitive power by minimizing logistics cost
through improvement of nations ocean-going container logistics system

Found of Corporation
91.5 : Finalization of Construction Plan of ICD
(SOC Investment Committee Government body)
92.4 : Establishment of SPC (Uiwang ICD Co.,Ltd.)

Invite of Stockholders
Public Sector : 25% (Korea Railroad/Government owned corporation)
Private Sector : 75% (15 Companies)
- 14 container transportation companies
- 1 container repair company
- 6 -

Secure of Land-site
Ownership of Land : Public Sector (Korea Railroad)
Period of Lease : 1993.7~2023.7 (30 years)
* Pay rental charge every year

Construction
Period : 94.12 ~ 96.10
Total Cost : US$30Million
Financing
- Public sector : Base facilities (road, railroad, electricity, water, sewage)
- Private sector : Building, CY(Container Yard), CFS, Equipments
* Stockholders paid construction cost by cash ratio of their shares.
Container Handling Capacity : 1.3 Million TEU/year

Benefit of Investment
Obtain the right of monopolistic using of CY by paying charge
* Private stockholders(15) operate their CY independently
Obtain the right of using of office room by free of charge
Type of Investment : BUILD OPERATE(30years) TRANSFER
- 7 -

Item
Total of Lands (Area)
Container Yard
C.F.S (Bonded Warehouse)
Operation Building
Automobile Maint. Shop
Container Maint. Shop
Reefer Plug
Railway
Gas Station

Description
753,000
417,000
10,700 (3 bldgs)
140,000 (8 bldgs)
1,720 ( 1 bldgs)
1,220 (1 bldgs)
96 Unit
6,262 m (11 lines)
480

- 8 -

Transfer Crane (3EA)

Reach Stacker (43EA)

( RTGC t y p e)

Tractor (650EA)

Trailer (1800EA)

- 9 -

Operation Structure
Ui wang ICD Co ., L t d
Management of Facility
Loading/Unloading of Railroad
Container
Public Container Yard Operation
Bonded Area Operation
Sales of Petroleum

Sh ar eh ol d er Co m pany
Transportation of Container
Operation of CY(Container Yard)
& CFS (Container Freight Station)

Container Repair Shop

Automobile Maintenance Shop

Government Body
Na m e
Custom House
Foodstuff Inspection
Plant Quarantine
Railroad Station

Ma jo r F u n c t io n
Customs clearance procedure
Inspection of imported Foodstuff
Quarantine of imported agri-product
Railroad Transport of Container
- 10 -

Others
Customs Clearance Brokers
Transportation Brokers (35)
Convenient Facilities : cafeteria, lodging house
Working person : 1,000 (Uiwang ICD Co., Staff : 37)

<Main Bldg>

<Railroad Station>

<Custom House>
- 11 -

Import
Railroad
Overland

<Custom House>

<CY>
Re p o rt
( E DI)

Unloading

<Food Inspection
Plant Quarantine>

Approval
<CustomsClearance
Brokers>

<Port>

<Uiwang ICD System>

Railroad
Overland

GA TE
Export

GA TE
<ICD>

<Shipper>

<Loading>

- 12 -

SEOUL
INCHON
UIWANG ICD

BUSAN
GWANGYANG

RAILROAD
OVERLAND

- 13 -

DFT : Domestic Freight Terminal

IFT : Combined ICD and DFT

Incheon Port

Gwangyang
Port

Busan Port

Major Sea Ports and Dry Ports

- 14 -

- 2 -

Inland Container Terminal

Perform CY(Container-Yard), CFS
(Container Freight Station) function
like Ports

Record
( TEU)

Item

2011

2012

2013

2014

2015

Railroad

502,366

527,732

495,464

444,583

448,716

Overland

493,368

481,044

583,659

563,181

536,032

Total

995,734

1,008,776

1,079,123

1,007,764

984,748
- 16 -

Railroad Transportation
Contract with transportation company
with round-trip and daily basis
Running time : 8 ~ 30 Trains per day
Uiwang ICD

Busan, Gwangyang Ports

Record

( TEU)

Item

2011

2012

2013

2014

2015

Arrival

230,685

243,066

227,721

193,393

202,143

Dispatch

271,681

284,666

272,743

251,190

246,573

Total

502,366

527,732

495,464

444,583

448,716
- 18 -

Customs Clearance
One-stop Service
Custom House, Food Inspection Office,
Plant Quarantine Office station in ICD
Check the customs procedure in real time
on Integral Logistics Network

Record
Item
Import

( TEU)

2012
46,862

2013
48,946

2014
36,775

Information Network
K o r a il

2015
35,933

Commodity
Machinery

Electric

Cus tom s

Go ve rn m e n t

Uiw a n g IC D

Footwear

Tr a n s p o r t a t io n
Com pa ny

Others
S h ip p e r

25%

23%

10%

42%

S h ip p in g Lin e

- 20 -

Inland Transportation
Deliver Empty Container shortest
distance
Combine Transport with Railroad
& Overland
Flow of Transport

Railroad Transport(Korail)

[ Ports]

Overland Transport

[ Uiwang ICD]

[ Shipper]

Save Delivery Cost

- 22 -

Relief of Traffic Congestion by large volume of Railroad Transport

Utilization as Clearance Depot for Capital Regions Container

(Curtailment of cost and time)

Reform the function of CY/CFS at inland as Sea-ports

(Relief of accumulated cargo at ports)

Operate sophisticated computer processing system

(Supplying latest logistics information to the related parties at real time)

- 23 -

Background of PPP Settlement

SOC Investment Committee publish construction plan of ICD (91.5)
- Railroad Authority (RA) : wants to construct & operate alone by
the RAs budget
- Private sector(transportation company) : oppose RAs plan and persuade
Committee to make PPP with RA
[factors of success]
* If RAs union strike and the ICD shut-down, it becomes the disaster
* RA does not have experience of management of ICD
* Government invite Private sectors money and save the budgets

Conclusion of PPP Negotiation

Railroad Authority : 25% (invest to commercial company up to 25% only)
Private Sector : 75%
- transportation companies (14) : 73% (secure the area of CY by shares)
- container repair company (1) : 2%
- 24 -

Benefits
Governments financial support
- direct support of 25% of total construction cost
- improvement and widen the road of outside ICD
Easy to go through permission procedures of central and local
government
- evaluation of transport effects and environmental effects according to
development
- construction in the development of restriction zone (Green Belt Zone)
Use of public land sites (property) at competitive cost
Sustainable operation of ICD during 30 years
- according to contract with public
Get a loan(policy fund) from financial institute at a very low interest
(other ICDs)
- 25 -

Challenges

Tendency toward private side, when a conflict of interests between

Public and Private
- Public sector : the right of nomination of CEO,
- Private sector : dominant position in a board of directors and a general
shareholders meeting.
Differing view on operation and management of ICD company
- Public sector : to increase freights of railroad transportation and dividend
of share
- Private sector : instead of dividend, to keep a low rates(charges)
of operational cost.
* Our company transacts business with Private sector 67% of total
revenues.

- 26 -