Throughput at KIT amounted to 80,000TEUs in 2003, up 515% over the 13,000 TEU handled in 2002, while the combined Busan operation weighed in with an increase of 5%, up from 1.986m to 2.435M TEUS.
Four new berths at Kwangyang are scheduled to become operational by the end of October 2004, bringing to eight the number of container berths operated by HPH there, whilst boosting the overall handling capacity at the port to more than 5m TEUs.
Busan also benefited from its own expansion programme in 2003, when four new post-Panamax quayside gantry cranes and four RTGs were acquired; a further eight existing RTGs were upgraded. Furthermore, at Hutchison Busan Container Terminal (HBCT) additional container yard space has been added as a result of re-modelling the facility, while the terminal system has been re-engineered and upgraded .
“Through constructive discussions with the port trade union, we have agreed on new work flow and labour allocation methodology required by our clients, particularly during peak times. All these efforts have enhanced efficiency and productivity at our terminals, ” the company told PS.
And they add: “With the capacity investments and productivity enhancements that have been put in place, there is no congestion at our terminals. In fact, there is surplus capacity available in Korea as a whole.”
The lack of congestion is in part explained by current productivity levels, which saw a record 171 boxes moved in an hour on the ZIM FLORIDA on 15 June, when no fewer than six quayside gantry cranes were deployed.
More impressive still are figures quoted for average moves-percrane/hour, with Busan accredited with achieving 30 moves and Kwangyang an astonishing 38 moves. No wonder HPH’s spokesperson says, “These are extremely competitive figures and certainly among the best in Korea.”
MORE SANGUINE As for the future of Chinese transhipment traffic currently passing through Korean ports, HPH confesses to be more sanguine than other industry commentators. “We are aware of the trend that certain shipping lines are opting for direct calls at Chinese ports rather than transhipping boxes through Korea, ” PS was told. “However, we remain optimistic about the situation in Korea based on the fact that Korean terminals have the productivity and reliability to remain competitive, while SinoKorea trade continues to surge, so it makes sense to call at the ports of both countries.
Furthermore, although ports in Korea may ultimately handle a smaller portion of Chinese transhipment, the absolute numbers of boxes will still increase because the pie is getting bigger at a fast pace.
Finally, we do not see it as a threat to the survival of Korean ports, although it will be prudent for the government to monitor the situation on an ongoing basis to ensure new facilities are built in line with demand.”
Japan continues to be an important market for the company’s two container port operations in Korea given the geographical proximity and the high land and cargo handling costs to be found in Japan. Several Japanese companies have already expressed interest in both the Kwangyang hinterland and the local port, which it believes would serve as a more cost-effective distribution centre for major Japanese cities. “We are also seeing an increased number of Japanese transhipment boxes in our Korean terminals because of the relatively higher costs in Japan, ” observes the spokesperson.
As for the effect the creation of distribution parks at Busan New Port will have on HPH’s existing operation in the established port, which is 40km away, this is less clear, particularly since the new development will not come fully on stream until 2011. However, HPH emphasises that the old port maintains an advantage because the supporting facilities are close to the urban locale, forming a critical mass of cargo volume. Furthermore, there is an equally sizable development of distribution and industrial parks behind the Kwangyang port area, which is also a free economic zone.
