Busan committed to global programme

The port authority says it will face ‘hardship’ this year, unless it takes action to widen its market share and consequently is actively investing in overseas activities.

As BPA points out, there are 11 new berths at the port all due to come into operation in 2009. Three are coming in from the first phase of development, and a further eight coming from the later stages. However, volumes are being impacted by the economic slowdown, with only a 3% growth forecast for this year, in comparison with a 10.2% increase last year.

So, Busan Port Authority (BPA) has turned its attention toward Nakhodka Port in Russia and Suifenhe in China in order to bring more cargo into the port.

As a part of its efforts, BPA has decided to inject $140m into Nakhodka Port in Russia. The plans include developing the existing fishery port with three berths for container and three berths for general cargo, with a general handling capacity of 400,000 teu. BPA has also formed a consortium with two domestic companies: HS line and Daewoo Logistics, and one Russian company-DVTG (Far Eastern Transport Group).

BPA will also participate in an Inland Container Depot (ICD) development project in Suifenhe. The signing of a Memorandum of Understanding brings together BPA with the municipal government of Mudanjiang, Suifenhe city in China, JSC Far Eastern Transport Group (DVTG) from Russia, and Hyundai Logistics from Korea over the development and operation of ICD.

The company expects that the MOU will help attract cargo from three provinces in North eastern China by connecting the ICD with Nakhodka Port.

Further, as part of efforts to diversify its overseas network, BPA has established port alliances with small- and medium-sized ports in Japan, China and Russia.

BPA has also signed on cooperative MOU with Niigata Port in Japan, which, it hopes, will help bring export cargo from Western Japan to Busan Port, and another with Algeciras Bay Port Authority.