Friday, April 14, 2006

The Investor, Vol. 40

Update on the Busan New Port: Current and Future Traffic Conditions

Since the opening of its first three container berths in January of this year, the Busan New Port has already begun handling container vessels and cargo.

Port officials project a total of 900,000 TEUs (twenty-foot equivalent units or port containers) to be handled this year, increasing to 3 million in 2008 when a total of 18 berths will be completed. By 2011, when the entire port is expected to be finished, the Busan New Port will be handling 10 million TEUs.

Currently, MSC Line of Switzerland has been visiting the new facilities twice a week and two additional lines scheduled to be making regular stops will be announced soon.

With a high-tech management system, services are fast and efficient. Ships will have a berthing time of less than 14 hours and a truck residence time of less than 20 minutes.

As has been announced earlier, Dubai Port World is involved in the management of the New Port’s Northern terminal.

The Authority also continues to market the Busan New Port to major shipping lines in cooperation with the Ministry of Maritime Affairs and Fisheries, Busan Port Authority and Pusan New Port Company.

In the meantime, bidding for space within the Busan New Port’s distribution park is in progress. Last year a Japanese consortium comprised of DAT Japan and Fukuoka Ocean Logistics won the bid for 16 acres of space. The distribution park’s second phase will be for 105 acres for a supply period of December of this year. Tenant selection is currently in process.

With so much progress taking place within its first four months of existence, the Busan New Port will no doubt be a huge driving force within the Busan-Jinhae Free Economic Zone as well as a major attraction to foreign investors.