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 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.”