Busan is good

Busan New Port a channel to logistics hub

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Opened just more than a week ago, the Busan New Port is designed to bring Korea a step closer to its ambition of becoming the logistics hub of Northeast Asia.

The port, 25 kilometers west of the old port, is forecast to serve as a key engine of development of the Busan-Jinhae Free Economic Zone (FEZ) and is currently operating three of the planned 30 berths. It is equipped with 172 cargo-handling cranes, including nine giant container cranes.

The first three berths of the port's north container terminal opened earlier than expected in response to the aggressive expansion plan of Shanghai's Yangsan port, which opened last December.

Expected to be finished in 2011, with all 30 berths operational, this mammoth project will have consumed over 9 trillion won in government and private money.

The port will ultimately handle 10 million TEUs (Twenty-foot Equivalent Units) annually when all berths are operating.

Apart from just handling general cargo, the Busan New Port authority expects to attract and generate more value-added cargo in order for it to become a logistics hub in Northeast Asia.

The port authority plans to build a logistics complex on a 1.2 million-square-meter lot in the northern container pier of the new port by 2008.

To ensure Busan New Port becomes a cargo-generating area, the Ministry of Maritime Affairs and Fisheries has decided to lease 1.2 million square meters of logistics space to multinational logistics firms at a price lower than that of the Shanghai port.

The port authority seeks to attract both local and foreign research and development centers, electronic parts manufacturers, and information technology firms to the new port.

Busan New Port will also provide another advantage when the South-North Korean railroad is constructed. The port will become both the starting and ending point of the “Iron Silk Road,” crossing the Eurasian continent via the Trans-Siberian, Trans-Manchurian and Trans-China railways.

It is expected that in 2011 when the multi-phased new port project is completed, 4,500 new jobs will be created. The port is expected to generate 740 billion won in operational revenue and 3.5 trillion won in extra revenue, adding vibrancy to the regional economy of South Gyeongsang Province.

 
The source of news : news.go.kr  2006.01.26