SEOUL, Dec. 3 (Korea Bizwire) – A Singapore marina resort operator is planning to build a world-class marina on the southeastern tip of the Korean peninsula, at the north port of Busan, Korea’s largest port city.
The Busan Port Authority (BPA) announced on December 1 that the port operator is in discussions with SUTL, its Singapore partner who proposed the marina project at the north port. The two companies will finalize detailed talks in December, with plans to sign a formal agreement for the usage of the port next January.
According to the proposed contract, SUTL will build a clubhouse, marina for 200 yachts, and a yacht academy by 2018, and operate them for 35 years. SUTL will invest 65 billion won (US$58.6 million) in the project.
BPA estimates the marina project will generate 2.2 trillion won of economic value, including production, added value and income generation, while creating 22,000 jobs.
Although BPA selected SUTL as the preferred bidder for the north port marina project in 2011, negotiations between the two were at a standstill for almost three years, as they were unable to agree on matters such as fees for using the port, and ways to manage the harbor facilities.
However, discussions recently reached a conciliatory note, with both parties moving forward by changing the land usage according to the Foreign Investment Promotion Act, which allows foreign lessees to build facilities on state land. As a result, compromise was reached regarding appropriate usage fees for the port, with SUTL set to manage the harbor facilities.
Established in 1965, SUTL is a global leisure development investment firm, networking 21 marinas in 11 countries. It operates the prestigious ONE°15 Marina Club located at Sentosa Cove, which was selected as the best marina in Asia in 2009.
SUTL plans to attract tourists and boost the local economy by hosting the Volvo Ocean Race, one of the top three yacht races in the world, at Busan in 2020.
Lim Ki-tack, president of BPA, said, “The marina project will drive the whole redevelopment project of the north port, and provide an opportunity for Busan citizens to experience a variety of marine leisure programs and cultural activities. Also, it will contribute to the revitalization of the local economy and the creation of new high-quality jobs.”
By John Choi (email@example.com)