South Korean company would boost city as a global port

[thelakelander]

Approval of a U.S.-Korea free trade agreement would pave the way for a major contract.

By DAVID HUNT, The Times-Union

The First Coast could cash in big on foreign trade policy changes as the city works to bring a major South Korean shipping company to Jacksonville's port.

"This, I believe, was the right decision to be made by the right persons at the right time in the right place," said South Korean Ambassador Lee Tae-sik.

Lee spoke to a group of Jacksonville business leaders and port authority executives late Thursday about U.S.-South Korean relations and a pending free trade agreement that he said could pump $10 billion to $12 billion into the U.S. economy.

With negotiations under way to build a 170-acre, multi-million dollar container terminal for Hanjin Shipping Co., Jacksonville could become a key factor in the economic boost, making the city a premier crossroads for products like Korean automobiles, Florida orange juice and Samsung TVs.

The event was hosted by the World Affairs Council of Jacksonville. Hanjin had two representatives in the audience of about 150.

The free trade agreement between the U.S. and Korea has not been ratified. Officials are debating details as some U.S. industries, primarily automakers and beef producers, argue it could be harmful for business.

Ron Baker, Jaxport's deputy director and chief financial officer, said although the ambassador's words themselves won't finalize a contract with Hanjin, the tone of the speech was comforting.

"I thought it was a perfect bow on top of our package as we talk about being a global port," he said.

Hanjin is South Korea's largest carrier. The company says Hanjin has a fleet of 200 ships and carriers that move more than 100 million tons of cargo annually worldwide.

Baker said a draft contract should be ready next week. Hanjin's estimated start date is in 2011. Baker said construction of the $360 million terminal likely will take 24 to 30 months, but the port authority is still searching for land.

"The devil is in the details, but we don't see any major barriers," hesaid.

Hanjin would be the second deal with a major Asian shipping line expected to build Jacksonville into a major U.S. port city.

Japan-based Mitsui O.S.K. Lines Ltd. is planning to open a terminal at the end of next year.

david.hunt@jacksonville.com,

(904) 359-4025

http://www.jacksonville.com/tu-online/stories/111707/bus_218340002.shtml

[gradco2004]

Wow, those guys are really hustling for the port. I am happy to see that. We need this type of agression to get larger companies here also.

[Charles Hunter]

It is a shame, though, that neither Mitsui nor Hanjin are paying for any of the infrastructure (mostly roads) needed to serve the thousands of trailers they will put on the roads every day.

[Jason]

Most of the infrastructure necessary to serve these terminals is supported by the rail companies, however, the roads are still a concern.  IMO, that is a resonable price to pay for the economic impact produced by these new companies comming to town.