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By Lee Gap-sook
President of Busan Port Authority
Even when you are in bed, cranes and trucks carrying containers are moving at Busan Port. Container vessels busily going in and out of Busan Port shows how dynamic the port is.
Korea has achieved rapid economic growth to stand at the world's 11th largest economic power since Korean War. IT, semi-conductor, automobile, shipbuilding, steel have been the main driving forces to drive the economy to the status and to boost the nation's competitiveness. Given that ports have played as a platform to expand all businesses, it would be difficult to underestimate Busan Port's contributions to helping promote the economic growth we archived.
Since the open ing in 1876, Busan Port, the unwavering number one port in Korea, has handled most of local and transshipment cargo in Korea. As the world's 5th container port and 3rd transshipment port, Busan Port handled 12.03 million TEU last year, 1.7% increase from the previous year: 6.83 million TEU of local cargo and 5.20 million TEU of transshipment cargo.
Busan Port, however, has faced fierce competition with ports across the world, especially Chinese ports which have engaged in port expansion and facilities investment. In order to secure enough cargo and stay competitive in this rapidly evolving environment, Korean government and Busan Port Authority (BPA) have devoted themselves to develop the port of Busan into the hub port in Northeast Asia by improving productivity and efficiency.
Busan Port, competing to be the hub port in Northeast Asia
Globalization and world trade increase have triggered fierce competition among countries. Marine trade is no exception. As marine transportation rises, container vessels have been growing in size and more than 8,000 TEU or 10,000 TEU ships called VLCV (Very Large Container Vessel) or ULCA (Ultra Large Container Vessel) are introduced in shipping industry.
China recording an average 10% of annual economic growth has injected huge investment into port facilities to handle more cargo in efficient manner.
With opening of Yangsan Deep Water Port in Shanghai at the end of 2005, in particular, Shanghai will secure a total of 76 berths by 2020 boosting its handling capacity to 3.04 million TEU. Last year Shanghai port handled 21.71 million TEU, 20.1 percent increase from the previous year. Ports of Dalian, Tianjin, Ningo, Qingdao have expanded their investment in port facilities to improve their handling capacity.
World ports have also increased investment on their ports putting fuel on the ongoing competition in port and logistics industry.
Recently, the Port of Busan has showed flat growth of container volume resulted by growing direct calls to Chinese ports, liners' change of their service network, and competition with other domestic ports.
From this year, however, with container tax imposed on local containers at $20 per TEU (20-feet-unit) scrapped, shippers will see logistics cost down in cargo transportation. Together with repealed container tax, increasing cargo volume in the transpacific route and opening of additional 3 berths at Busan New Port will boost container throughput of Busan Port.
Terminal operators at the largest port in Korea will make utmost efforts to enhance Busan Port's competitiveness by introducing the state-of-the-art port facilities and offering customer-oriented service.
Busan New Port Construction without a hitch
In order to address congestion at Busan Port and to provide one-stop service to the customers, Korean government embarked upon Busan New Port Construction Project in 1994. With opening of 3 berths in January, 2006, Busan New Port is under construction as scheduled.
Busan New Port securing 17 meters of water dept h saw the opening of 3 additional berths in December last year. When securing a total of 30 berths at the end of 2011 as planed, the new port's cargo handling capacity will reach 8 million TEU, boosting total capacity of Busan Port to 15 million TEU.
Busan New Port will serve as a stepping-stone to foster Busan Port to the hub port in Northeast Asia by positively responding to the rapidly evolving environment of port and logistics.
Huge space of distripark, creating new cargo
A total of 10,900,000㎡ of logistics distribution center ensures comprehensive port and logistics services : 3.07 million ㎡, 1.38million ㎡, 6.54million ㎡ adjacent to North Container Terminal, South Container Terminal, and Ungdong Area respectively.
1.2million ㎡ out of 3.07million ㎡ of distripark near North Container Terminal is under development and BPA already selected 67 multinational logistics companies, 31 from Korea and 36 from foreign countries: Mitsui, NYK Line from Japan, Cosco Logistics from China, Samskip from Finland, and others.
The tenant companies at the logistics district will enjoy low lease fees, various benefits and tax incentives. Backup transportation such as road and rail will be completed in 2011 speeding up logistics flow and reducing logistics cost.
North Port Redevelopment Project
Through the redevelopment of general piers at Busan Port, BPA will reshape the port of Busan into the international destination of maritime and tourism by injecting US $9billion. BPA expects the project to create $32 billion of economic effect and 120,000 jobs contributing to local economic development.
Through the regeneration project, Busan Port will be reborn as the truly hub port connecting continent and ocean in 2020 when the project completes.
The source of news: The Korea Times 02-14-2007 15:08
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