Development and Operation of Table Ⅰ General Situation Ⅱ Facility & Equipment Ⅲ Occupants Ⅳ Working Process Ⅴ Functions & Effects of ICD Ⅵ 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 Expressway Auto Maint. Shop CFS Map of Uiwang Inland Container Depot - 5 - Purpose of Establishment Strengthening national competitive power by minimizing logistics cost through improvement of nation’s ocean-going container logistics system Found of Corporation ㅇ ‘91.5 : Finalization of Construction Plan of ICD (SOC Investment Committee – Government body) ㅇ ‘92.4 : Establishment of SPC (Uiwang ICD Co.,Ltd.) Invite of Stockholders ㅇ Public Sector : 25% (Korea Railroad/Government owned corporation) ㅇ Private Sector : 75% (15 Companies) - 14 container transportation companies - 1 container repair company - 6 - Secure of Land-site ㅇ Ownership of Land : Public Sector (Korea Railroad) ㅇ Period of Lease : 1993.7~2023.7 (30 years) * Pay rental charge every year Construction ㅇ Period : ‘94.12 ~ ‘96.10 ㅇ Total Cost : US$30Million ㅇ 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. ㅇ Container Handling Capacity : 1.3 Million TEU/year Benefit of Investment ㅇ Obtain the right of monopolistic using of CY by paying charge * Private stockholders(15) operate their CY independently ㅇ Obtain the right of using of office room by free of charge ㅇ Type of Investment : BUILD OPERATE(30years) TRANSFER - 7 - Item Description Total of Lands (Area) 753,000 ㎡ Container Yard 417,000 ㎡ C.F.S (Bonded Warehouse) 10,700 ㎡ (3 bldgs) Operation Building 140,000 ㎡ (8 bldgs) Automobile Maint. Shop 1,720 ㎡ ( 1 bldgs) Container Maint. Shop 1,220 ㎡ (1 bldgs) Reefer Plug 96 Unit Railway 6,262 m (11 lines) Gas Station 480㎘ - 8 - Transfer Crane (3EA) Reach Stacker (43EA) (RTGC type) Tractor (650EA) Trailer (1800EA) - 9 - Operation Structure Uiwang ICD Co., Ltd Shareholder Company Management of Facility Transportation of Container Loading/Unloading of Railroad Operation of CY(Container Yard) Container & CFS (Container Freight Station) Public Container Yard Operation Container Repair Shop Bonded Area Operation Automobile Maintenance Shop Sales of Petroleum Government Body Name Major Function Custom House Customs clearance procedure Foodstuff Inspection Inspection of imported Foodstuff Plant Quarantine Quarantine of imported agri-product Railroad Station 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 <CY> <Custom House> Unloading Report <Food Inspection (EDI) Plant Quarantine> Approval <Customs Clearance <Port> Brokers> <Uiwang ICD System> Railroad Overland GATE Export GATE <ICD> <Shipper> <Loading> - 12 - SEOUL INCHON UIWANG ICD BUSAN GWANGYANG • RAILROAD OVERLAND - 13 - DFT : Domestic Freight Terminal IFT : Combined ICD and DFT Incheon Port Busan Port Gwangyang 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 Information Network (TEU) Item 2012 2013 2014 2015 Korail Customs Government Import 46,862 48,946 36,775 35,933 Commodity Uiwang ICD Transportation Machinery Electric Footwear Ot h e r s Company Shipper 25% 23% 10% 42% Shipping Line - 20 - Inland Transportation Deliver Empty Container shortest distance Combine Transport with Railroad & Overland Flow of Transport Railroad Transport(Korail) Overland Transport [Ports] [Uiwang ICD] [Shipper] Save Delivery Cost - 22 - Relief of Traffic Congestion by large volume of Railroad Transport Utilization as Clearance Depot for Capital Region’s 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 ㅇ SOC Investment Committee publish construction plan of ICD (‘91.5) - Railroad Authority (RA) : wants to construct & operate alone by the RA’s budget - Private sector(transportation company) : oppose RA’s plan and persuade Committee to make PPP with RA [factors of success] * If RA’s union strike and the ICD shut-down, it becomes the disaster * RA does not have experience of management of ICD * Government invite Private sector’s money and save the budgets Conclusion of PPP Negotiation ㅇ Railroad Authority : 25% (invest to commercial company up to 25% only) ㅇ Private Sector : 75% - transportation companies (14) : 73% (secure the area of CY by shares) - container repair company (1) : 2% - 24 - Benefits ㅇ Government’s financial support - direct support of 25% of total construction cost - improvement and widen the road of outside ICD ㅇ 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) ㅇ Use of public land sites (property) at competitive cost ㅇ Sustainable operation of ICD during 30 years - according to contract with public ㅇ Get a loan(policy fund) from financial institute at a very low interest (other ICDs) - 25 - Challenges ㅇ 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 shareholder’s meeting. ㅇ 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 - .