Busan is good

Busan-Jinhae FEZ in Vanguard of Enhancing Ties With UAE

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The Busan-Jinhae Free Economic Zone (BJFEZ) Authority has been strenuously spearheading the development of ties with Dubai and the United Arab Emirates.

The relationship officially began in 2004 when Dubai Port World (DPW) bought shares of the United States’ CSX World Terminals, thus becoming the major shareholder of Pusan Newport Corporation (PNC). As a result, DPW has taken on a valuable role in the construction and management of the Busan New Port, located within the BJFEZ in southeastern Korea. The investment totals $2 billion.

Under the investment arrangement, DPW’s involvement includes port terminal operation including training for operating skills and programming. The company will also internationally market the Busan New Port to other major shipping lines. PNC will build and manage the port including overall terminal operation activities.

``Our partnership with DPW and PNC is a huge advantage in terms of generating the best in port business and service,’’ said Kim Moon-hee, the BJFEZ’s current commissioner. ``Their presence has attracted interest from many other investors to our area. The Busan-Jinhae Free Economic Zone Authority is fortunate to be working with both corporations.’’

The construction of the Busan New Port is a massive undertaking as it will have a total of 30 container berths by the time it is projected to be completed in 2011. As a result, it will make Korea a strong competitor in Asia that is currently witnessing a rapid build-up of port enhancements, especially in neighboring China.

The port is currently operating six berths with the ability to load and unload 2.4 million TEUs (twenty-foot equivalent units) and by next year, when a total of 18 berths will be in existence, 6.05 million TEUs will be handled.

It is expected that the port will play a key role in Northeast Asian trade activity, handling at least 55 percent of the region’s volume in terms of transshipment freight as the port facilities will accommodate 10,000 TEU class container vessels.

But the new port area is not the only project the BJFEZ Authority hopes UAE investors will notice as they converge in Seoul to attend the UAE-Korea Business Investment Opportunities Exhibition. The BJFEZ is also seeking investment in the area of real estate development for the construction of its new international city, Myeongji. In addition, it aims to bring in international schools and hospitals, services Dubai also saw a need for as it has developed its Knowledge Village and Health Care Free Zone. The BJFEZ is also marketing the Ungdong tourism and leisure district that will have resorts, golf courses and various hotels and condominiums.

Earlier this year, Commissioner Kim led a delegation to the UAE where he further strengthened existing ties between the Authority and ranking UAE officials including Mohammnol Al Gergawi, Dubai’s secretary of state, and Farhan Faraidooni, chairman of Sama Dubai. During the meeting UAE officials expressed intentions to dispatch a cadre of experts to the Busan-Jinhae Free Economic Zone in June to study the possibility of investing there. It was learned that Dubai Holding officials have particular interest in the Ungdong tourism and leisure area.

The source of news : The Korea Times  06-07-2007