Macquarie Korea Infrastructure Fund (MKIF) has announced that it will invest KRW259.4 billion (US$277.03 million) in Busan New Port Container Terminal, Ltd (BNCT), the concession company with the right to develop, operate and maintain the Busan New Port Phases 2-3 (BNP).
BNP is currently being developed as a key part of a national priority port project named Busan New Port, which is intended to meet future demand driven by Busan's position as a regional shipping and logistics hub.
The investment, funded by MKIF's available cash and loan facility, will consist of 30 per cent equity, or KRW66.4 billion, of the available equity in BNCT, making MKIF the largest shareholder.
The project is expected to take four years to build and is targeted to commence operation in early 2012, a statement from MKIF said. Upon completion, BNP will consist of four container berths with an annual capacity of 2.7 million TEU.
The concession right is for 29 years and three months from the date of the commencement of the operation and is being granted by South Korea's Ministry of Maritime Affairs and Fisheries.
Chul Hum Paik, representative director of Macquarie Shinhan Infrastructure Asset Management Co, the manager of MKIF, said: "This investment will be MKIF's first in the Korean port sector, marking an important development for MKIF, as it diversifies our asset base from the road and tunnel sector."
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