Busan Port ready to evolve in post-FTA world
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By Kwak In-Sub
Administrator, Busan Regional Maritime Affairs and Fisheries Office (BRMAFO)
After hearing about the successful conclusion of the KORUS FTA in early April, I thought about Charles Darwin and his work to prove that natural selection favors the species that manage to evolve.
From the small Jaseongdae Pier in 1974, Busan has evolved into one of the world's five major ports. Its remarkable growth is attributable to accurate forecasts about the growth of container shipping, national economic development in general and a drastic increase in transshipment from Japan after the 1995 Kobe earthquake.
The KORUS FTA has once again brought the port to a critical juncture requiring quick adaptation to a changing environment.
Experts anticipate a great deal of benefits from increased shipping after the KORUS FTA. The Korea Maritime Institute predicts that by 2015 shipments in and out of Korea will go up 950,000 TEU (Twenty-foot Equivalent Units), nearly 70 percent of which will land in Busan's three sister ports -- New Busan, Northern and Southern.
Chinese and Japanese shipping firms are already expected to rush to Busan Port's industrial complex to secure lucrative positions as Korea is the first East Asian country to reach a free trade agreement with the U.S. After the KORUS FTA is ratified and starts to bear fruit, Busan Port's desirability will increase further.
Though some worry about China's extensive port development and the overheated competition among domestic shipping agents, the KORUS and other FTAs will fuel Busan Port's drive to become the central logistics hub of Northeast Asia. The agreements will also bring qualitative growth to Busan Port, matching the quanitative expansions already in place.
We should now calculate what should be corrected and bolstered to fully utilize this precious chance offered by the FTAs.
To prevent increased shipments from congesting the port and killing off potential for even further gains, the BRMAFO will lay new road and railways and broaden efforts to connect the New Busan and Southern ports. Eventually, ships docking at both ports will receive entrance fee exemptions.
The maritime affairs office will also maintain state-of-the-art loading dock facilities, attract transshipments from global shipping companies, and proactively conduct port sales.
With the partial renewal of Northern Port still a year away, the office will tap other nearby ports, including Gamcheon Harbor, in the event of overcrowding. In ways like this, the BRMAFO will always strive to ensure expeditious service for East Asian shipping companies and draw the high value-added transactions that will keep Busan among the world's most attractive ports.
*Related websites
1. Busan Regional Maritime Affairs and Fisheries Office
http://portbusan.go.kr/en/en_index.asp
2. Busan Port Authority
http://busanpa.com/service?id=eng_index
