South Korea’s Ambitious Plan to Enhance Busan Port’s Global Competitiveness
South Korea’s Ministry of Oceans and Fisheries has recently unveiled a groundbreaking plan aimed at ensuring the continued global competitiveness of the Busan port. With a total investment of $10 billion, including the development of a new container complex that will rank among the largest in the world, the ministry is determined to solidify Busan’s status as a key player in the global shipping industry.
Global Hub Port Construction Strategy
The ministry’s Global Hub Port Construction Strategy highlights the importance of preemptively strengthening Busan’s competitiveness to attract global shipping companies. This initiative is crucial in the face of increasing investments in ports in countries like China and Singapore, which are expanding terminals, implementing smart port technologies, and embracing eco-friendly practices.
Busan Port’s Significance
Busan port is one of the busiest container ports globally, handling three-quarters of South Korea’s domestic container volume. Additionally, it serves as a vital transshipment hub, accounting for 97 percent of the volume. Since 2015, Busan has held the position of the world’s second-largest transshipment port.
Challenges and Solutions
Despite its status, Busan Port faces operational challenges such as inter-berth transshipment issues and inefficiencies in berth management due to multiple terminal operators. The ministry’s plan acknowledges the need for a transition to a mega port and improvements in operational structures to accommodate larger vessels and changes in shipping industry alliances.
Investment Details
The $10 billion investment will support the creation of the Jinhae New Port alongside Busan, designed to rival Singapore’s Tuas Port in size. The new Korean port will feature 66 berths capable of handling future vessels with a capacity of 30,000 TEU and increase container yard space by 1.5 times. The plan also includes incentives for terminal operators to integrate and streamline operations.
Future Outlook
Other elements of the investment focus on expanding overseas logistic centers and port hinterland complexes to attract global logistics companies. South Korea plans to increase its international offices promoting the port to 16 locations by 2032, with a strong focus on key markets like the eastern U.S., Southeast Asia, and Europe. Additionally, there will be a significant emphasis on eco-friendly port conversions, aiming for 25 percent renewable power by 2032 and 100 percent by 2050.
Minister’s Perspective
Minister of Oceans and Fisheries Kang Do-hyung emphasized the importance of strengthening Busan Port to adapt to changes in the shipping industry. He highlighted the opportunities presented by reorganizing the supply chain and emphasized the plan’s role in protecting South Korea from regional and global shifts.