As the Ministry of Land, Infrastructure and Transport begins discussions on controlling the supply of construction machinery, there is growing interest in whether the limit on increasing the number of concrete mixer trucks, which has been restricted for 16 years, will continue this year. Existing vehicle owners argue that supply control is necessary due to a downturn in the construction market, while there are also calls to allow new entries.
According to the industry on the 26th, the first meeting of the construction machinery supply control committee, overseen by the Ministry of Land, Infrastructure and Transport, was held on the 18th. The construction machinery supply control committee, one of the 57 committees under the Ministry, deliberates and decides the supply of construction machinery every two years to protect rental business operators and stabilize the construction machinery rental market.
The limit on increasing the number of concrete mixer trucks is expected to be a major topic in this year's deliberations. According to the Ministry's announcement on 'Implementation of Construction Machinery Supply Control,' the machines whose new registrations for business use are restricted this year and last year include concrete mixer trucks and tower cranes under 3 tons (t). Tower cranes are restricted for new registration due to frequent tipping accidents, for safety reasons.
Ready mixed concrete (Remicon) is concrete made by mixing cement, aggregates, water, and other admixtures. Since it is a semi-finished product that must be poured within 90 minutes, it needs to be transported in a special vehicle called a concrete mixer truck to prevent it from hardening. This vehicle is commonly referred to as Remicon.
According to statistics from the Ministry of Land, Infrastructure and Transport, while forklifts, which are not subject to supply control, increased from 23,663 units at the end of 2011 to 43,209 units last year, a 82.6% increase, concrete mixer trucks only increased from 19,577 to 22,581 units during the same period, a mere 15.3% increase.
Transport operators and labor unions are insisting that supply control must be maintained. A representative from the Korea Construction Equipment Association noted, "Supply control is necessary, and we are discussing which models need to be maintained and newly registered." Currently, the Korea Construction Policy Research Institute, which is conducting the Ministry's supply control study, is investigating the current status of construction machinery by type. The deliberation criteria set by the Construction Machinery Management Act include construction activity, construction machinery operation rates, the construction machinery rental market, the supply of professional manpower such as drivers, and the occurrence of construction machinery accidents.
Ready mixed concrete manufacturers claim that transport operators have formed a 'cartel.' Transport is as important as production, and many are struggling as transport operators refuse transportation, demanding higher transport fees. A representative from the Korea Ready Mixed Concrete Association said, "The protection of transport operators' rights has already been achieved. Since new registrations are not allowed, vehicle license plates are traded for 30 million to 40 million won. If transportation is refused, dispatched ready mixed concrete cannot be delivered, causing significant difficulties for both manufacturers and construction companies."
A commissioner participating in the construction machinery supply control committee said, "This year, the construction market is not looking good, so its impact is expected to be significant. After the results of the Korea Construction Policy Research Institute's study are released, discussions will be held, and results are expected to come out around the end of August."
A representative from the Ministry said, "The situation in the construction industry will inevitably affect the review of construction machinery supply control. We will decide on the control targets through comprehensive discussions that include quantitative criteria such as supply and demand, as well as qualitative factors like accident occurrences."