Busan Port, Leaping Forward as Hub Port of Northeast Asia

Busan Port Authority focuses on boosting productivity and efficiency of port operation to make port competitive among rival ports

The U.S-sparked financial crisis and global economic recession have had a big impact on shipping liners, operators, shippers and port-related businesses. Liners' policy to reduce their services because of the sluggish economic situation has caused a deterioration of the profitability of terminal operators, making port authorities worldwide consider delaying port investments and construction plans.
Under these negative circumstances, the Busan Port Authority (BPA), responsible for port management, operation and development, has countered these challenges by improving port productivity together with terminal operators at Busan Port, constructing Busan New Port without a hitch, regenerating the general piers of Busan North Port and more.
Productivity and efficiency play key roles in attracting more cargo to a port. In this regard, Busan Port has made efforts to improve the port's productivity by mobilizing five- or six-quay cranes simultaneously to reduce the loading and discharging time of cargo. This means that vessels' berthing time at a port, directly linked to the shippers' costs, can be reduced.
As a part of these efforts, BPA, the government, and terminal operators have worked together to integrate four operators into one at Gamman Terminal of Busan North Port. Previously at Gamman Terminal, there were four different operators at four berths. By integrating the four operators into two at first, the terminal's productivity was highly improved. Now the concerned parties are under negotiation to integrate into one operator. In addition, terminal operators at Busan Port have installed state-of-the-art cargo handling facilities such as tandem cranes.
Nowadays, Busan Port has witnessed fierce competition from other ports in Northeast Asia and many ports have embarked on port investment and construction. In order to be the hub port of Northeast Asia, Busan New Port has been under construction with a plan to have 30 berths by 2015. As scheduled, Busan New Port construction has proceeded without a hitch and, as of now, six berths are in operation by PNC (Pusan Newport Company -- Dubai Port World responsible for operation). Also, four berths at Phase 2-1 to be operated by Hanjin Shipping and four berths at Phase 2-2 to be operated by Hyundai Merchant Marine will be opened next year.
Busan New Port will be revitalized as multinational logistics companies from both home and abroad are being selected as tenant companies at Distripark with its huge logistics area of 6.2 million square meters available for cargo assembling, packaging, processing and other logistics businesses.
As of now, six global consortium companies have already begun operations, creating high added value, and 16 consortiums are expected to begin operations by the end of next year at Distripark near the North Container Terminal of Busan New Port.
With Busan New Port in operation, BPA and the government have decided to redevelop the general piers of Busan North Port into the hub of maritime and tourism activities by accommodating waterfront facilities for citizens. By returning the port area to the citizens through the redevelopment project, BPA believes the concept of the port goes beyond the functions of terminals and cargo handling to include maritime transportation and marine tourism. The regeneration project, funded with $8.7 million, will be finalized by 2020, transforming Busan Port into the center of maritime and tourism industries.
BPA has made its utmost efforts to attract cargo to Busan Port by visiting global shipping liners such as Maersk, MSC, Evergreen and CMA-CGM directly to explain the advantages and offer the services of Busan Port. In order to bring more cargo to the number one port in Korea, BPA decided to turn its eyes to overseas ports by investing in Nakhodka Port in Russia and the Hunchun-Zarubino Project. As its first overseas investments, BPA will transform the existing fisheries terminals into a container terminal and a multi-purpose terminal in Nakhodka. Through the Hunchun-Zarubino Project, which connects Russia and three Provinces in Northeastern China, BPA can attract cargo from those areas.
With this investment in a Russian port, Busan Port will attract new cargo by obtaining a logistics base in far eastern Russia, diversify its revenue resources and establish a global logistics network.
On the basis of these efforts, Busan Port handled 13.26 million TEU in 2007, ranking fifth among the world's container ports and third among transshipment ports. In 2008, Busan Port is expected to maintain that status. These efforts and projects implemented by BPA will be the driving force to develop Busan Port into the hub port of Northeast Asia. nw

A view of Busan Port which is operated by Busan Port Authority trying to make the port competitive enough to be a hub port in N.E. Asia, outrivaling its competitors.