”The operators have not been chosen at this point in time. The construction is scheduled to start in late 2010,” Kang Sung-Min, assistant manager for BPA, told Bunkerworld.
The operational date of the terminal is now unclear and will depend on the pace of the construction, Kang said. Initially it had been hoped to have the terminal operating by early 2010.
The port authority has been looking for an investment scheme that can maximise economic and financial benefits for investors.
”BPA is considering that a public-private partnership is the most suitable way to realise this project successfully,” Kang said.
”However, the range of investments by the private parties and BPA respectively has not yet been determined.”
The new terminal will help handle imports of fuel oil from sources such as international traders or tank operators with product then being channelled into the marine fuel marfket.
Observers say it will help offset shrinking fuel oil output from local refineries, which have preferred to produce higher-quality distillates for the more lucrative export markets.
Traditionally, marine fuels sold to foreign vessels in South Korea are sourced exclusively from the local refiners.
Busan, Korea’s biggest bunkering port, accounts for about 50% of the country’s total bonded bunker sales.
According to Korea Energy Economics Institute (KEEI), the country sold 8.1 million metric tonnes (mt) of bunkers in 2008, while industry players have estimated sales at about 10 million mt.
The local port authorities do not keep official statistics on bunker sales volumes.