Gov¡¯t to lower state logistics costs to 10% of GDP

The Ministry of Construction and Transportation announced plans in its long-term national logistics blueprint Monday to lower the portion of state logistics expenses to 10% of gross domestic product (GDP), the same level as that of advanced countries.

The major aim of the plan is to foster Korea's growth into the center of logistics in Northeast Asia by pulling down the portion of state logistics expenses from 16.5% of GDP or 74.2 trillion won in 1998 to 12.5% in 2010, and further to 10% in 2020.

To that end, the ministry decided to build cargo terminals on a 160,000-pyong lot in the Cholla provinces (Changsong, South Cholla Province) and 210,000-pyong lots in the central region (Chongwon in North Chungchong Province, Yonki in South Chungchong Province) by 2005. The new facilities follow the completion of cargo terminals in the metropolitan area (Euiwang, Kunpo) and Pusan (Yangsan). The ministry is now looking for a suitable in Kyongsang and plans to complete the construction work by 2010.

Along with the construction of inland cargo bases in the country¡¯s five major regions, the ministry also decided to significantly expand small-and medium-sized logistics centers by building general cargo terminals in Puk-gu in Ulsan (16,000-pyong) and Talsuh-gu in Taegu (21,000-pyong) by 2002.

In 2003, it will also construct cargo estates for collection and delivery in five locations, Yongin in Kyonggi Province, Shiwha Industrial Estate, Taegu, Kwangju, and Kwangju in Kyonggi Province.