B U S A N P O R T. Your Dream to the World

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1 B U S A N P O R T Your Dream to the World

2 BUSAN PORT AUTHORITY National Corporation to Create a Global Hub Port + CEO Message 04 + About Busan Port Authority 06 History of Busan Port History of Busan Port Authority Vision, Core Values, Management Policies Port Commission Organization Employee status Roles of BPA / Government / Local Government in Busan Port + Core Business of Busan Port Authority 10 Map of Busan Port New Port Container Terminal New Port Distripark Development North Port Container Terminal North Port Redevelopment New International Passenger Terminal + Busan Port Statistics 22 Container Throughput of Busan Port Container Throughput of Busan North Port and New Port Container Throughput of World's Top5 Major Ports Container Throughput of Korean Ports Container T/S Throughput of Korean Ports + Reference for Sister Ports 24

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4 ㅣ CEOMessage As a hub port with high-tech logistics facilities 500PORTS in Northeast Asia, trading with 500 ports in 100 countries in the world. Busan Port, connecting 500 ports in 100 countries, is the logistics hub port in Northeast Asia in the 21st century. To accommodate rapidly increasing container traffic in the region, we continue to expand the port facilities and its distribution systems, while accelerating our development of a state-of-the-art New Port. BUSAN PORT AUTHORITY Albania Algeria Angola Argentina Australia Austria Bahrain Bangladesh Belgium Brazil Bulgaria Cambodia Canada Chile China Colombia Costa Rica Croatia Cuba Cypress Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Finland France Gabon Germany Ghana Greece Grenada Guam Guatemala Haiti Honduras Hong Kong Hungary India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Kuwait Latvia Lebanon Liberia Liechtenstein Lithuania Madagascar Malaysia Mauritius Mexico Mongolia Mozambique Myanmar Nepal Netherlands New Zealand Nicaragua Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Qatar Republic of South Africa Romania Russia Saudi Arabia Singapore Slovenia Srilanka Sudan Sweden Swiss Syria Taiwan Thailand Trinidad and Tobago Tunisia Turkey Ukraine United Arab Emirates United Kingdom United States of America Uruguay Uzbekistan Vanuatu Vietnam Yemen Differentiated Competitiveness Driving to be the transshipment hub for global shipping industry Implementing cost-cutting measures for distribution Extended application of a transshipment (T/S) cargo incentive -Exemption of port entrance fee for T/S cargoes -Reduction of entrance and clearance fees for vessels Transshipment incentives (for shipping companies with over 5,000 TEUs in annual handling) Efficient and rapid customs clearance, quarantine and inspection system Global networks -Promoting overseas port business opportunities to generate transshipment cargoes -Driving Port Alliances with ports in China and Japan * 04 *

5 Welcoming Remarks from the President of Busan Port Authority First of all, I would like to express my deepest appreciation for your continuous support for Busan Port. Busan Port, which opened in 1876 as the first trading port in Korea, has now become the world class container port and the largest transshipment port in Northeast Asia. By using Busan Port, you can experience the best-in-class port services. On the crossroad of the world s main trunk routes connecting oceans and continents, Busan Port is engaged with more than 500 ports in 100 countries. More than 16m water depth, high tech cargo handling facilities and outstanding port personnel position Busan Port as the logistics hub port in Northeast Asia. Your dream to the world Established in 2004 as the managing entity of Busan Port, Busan Port Authority has been making continuous and concerted efforts for further development of its port facilities and services to guarantee swift, precise and safe port services to carriers and shippers using Busan Port. Busan Port Authority is continuously improving and innovating in every aspect of our business to meet various needs of our customers. Busan Port being the center of container movement in the world, the completion of North Port redevelopment project would make Busan Port the world class brand for global marine tourism industry. Once again, I am highly appreciative of your support for Busan Port and I wish all of you continued success in your future endeavors. Yours sincerely, Lim Ki-tack President, Busan Port Authority * 05 *

6 ㅣ AboutBusanPortAuthority History of Busan Port 1876 : Opening of Busan Port 1906 : Start of pier construction ~ 1945 : Completion of Pier 1~4 and a central pier : Pier 1, 2 development -Completion of 4 container piers including Jaseongdae and the international ferry terminal : Phase 3 development of Busan port - Completion of Sinseondae container terminal : Phase 4 development of Busan port -Completion of Gamman container terminal BUSAN PORT AUTHORITY : Construction of Busan New Port -Size : Berthing facilities of 45 berths, Land formation of 9,442,637 m2 for ports and distripark site -Budget : KRW 13 trillion and billion (government : KRW 6 trillion and billion, private investment : KRW 6 trillion and billion) : North Port Redevelopment -Size : 1,532,419 m2 of the old pier in Busan Port (North Port) to make it an international marine tourism hub -Budget : KRW 8 trillion and 519 billion (including projects by government, BPA, private investors) Infrastructure : KRW 2 trillion and 38.8 billion (by government and BPA) Superstructure : KRW 6 trillion and billion (by private investors) : Construction of a new international passenger terminal in Busan Port * 06 *

7 History of Busan Port Authority Basis of Establishment: Port Authority Act Purpose of Establishment -To contribute to the national economy, we will make Busan Port a competitive hub of shipping logistics in Northeast Asia by raising professionalism and efficiency in the development and operations of Busan Port. Scope of Business -Development and operations of port facilities -Land formation, management and operations of the distripark -Port redevelopment and construction of marina port facilities -Businesses delegated by the state and the local governments History -16, Jan : Establishment of Busan Port Authority (BPA) -19, Nov : Enactment of the Enforcement Decree of Port Authority Act (Presidential Decree No ) -29, May 2003 : Enactment of Port Authority Act (Legislation No ) Vision, Core Values, Management Policies Your dream to the world Vision :National Corporation to Create a Global Hub Port Core Values :Challenge, Creativity, Cooperation Management Policies :Integrous organization, Professional organization, Dreaming organization * 07 *

8 ㅣ AboutBusanPortAuthority Port Commission Role :The highest decision-making body considering and deciding major issues of Busan Port Authority such as management objectives, budget, acquisition and disposal of property, installation of organizations, rent standard setting for port facilities. Composition :7 nonpermanent commissioners Organization (As of July 2014) 4 Divisions, 24 Teams BUSAN PORT AUTHORITY President Public Relations Team Management Division Operation Division Planning and Coordination Department Advancement Initiative Team Management Support Team Finance Accounting Team Logistics Planning Department Marketing Team Port Operation Team Customer Service Center Busan New Port Office Seoul Office International Passenger Terminal Operation Planning Team International Cooperation Team Creative Management Team Gamcheon Office Port IT Team Global Marketing Team Port Security Planning Team Port Committee Construction Division Construction Planning Team Port Construction Team Port Facilities Team Audit Committee Audit Team North Port Redevelopment Project Division Investment Promotion Team Development Project Team Employee Status (As of July 2014) Total (Persons) Executives Staff President Vice President Subtotal Regular Others Subtotal * 08 *

9 Roles of BPA / Government / Local Government in Busan Port Division BPA Government Local Government Port management and operations Port develop ment Management and operations of the free trade zone (FTZ, Distripark) Selection and management of tenant companies Control and maintenance of public facilities Collection of rent and maintenance fees Management & operations of the FTZ Pass issuance for the FTZ Conclusion of enforcement agreements Construction of port facilities including new construction, renovations, maintenance, repair, and dredging Pier construction Distripark (construction) Port Redevelopment project Maintenance & repair of port facilities Dredging (development centered, maintenance dredging) Port support facilities Writing approval certificate of action plans for construction projects Government commissioned project Establishment of action plans for port facilities Policy coordination Designation, management and operations of the FTZ Permission for Occupancy and Construction Administrative support for the FTZ Installation and control of public facilities Management of state-owned asset Pier Construction (projects applied by the private investment acts) Distripark (budget support) Port redevelopment project (public works) Maintenance & repair of port facilities (public facilities) Dredging (dredging development) Approval of action plans for various construction projects Hinterland transport facilities Counter facilities and harbor transport facilities Attraction of private investment in port facilities Port facilities planning and approval of its action plans (Distripark) Administrative Assistance for FTZ Consultation for city planning on the port redevelopment Various licensing by individual laws Hinterland transport facilities Harbor transport facilities Consultation for port facilities planning - - Your dream to the world Others Marketing and PR for Busan Port Training & supporting port workers Research and Development (R&D) Marketing and PR for Busan Port Training & supporting port workers Research and Development (R&D) Busan Port Promotion * 09 *

10 1,750 m (5 berths) ㅣ CoreBusinessofBusanPortAuthority MAP Of BuSAN PORt Ungdongman Waseongman Angol Multiple Leisure Complex 2-phase 1.09M Ungdong Hinterland 1-phase 2.49M Harbor Hinterland Hinterland of North Container Terminal BUSAN PORT AUTHORITY Land for Harbor Facilities Over 4,000 TEUs 50,000 30,000 Feeder Grain Multipurpose West Container Hinterland General Pier 227,000 West Container Terminal 2,000-12,000 TEU Class North Container Terminal Oil Base 63,000 South Container Hinterland 306,000 2,000-8,000 TEU Class Ship Repair Complex (Ship Yard) 348,000 2,000-8,000 TEU Class South Container Terminal Pier-bridge * 10 *

11 Gangnam Shipbuilding Modeun Pier Shipbuilding Area Shipbuilding Area Port Facilities (Coastal Passenger / Cruise Ships) Multiple Multiple Port Port District District (International (International Passenger Passenger / Cruise) Cruise) North Port Redevelopment Area Marine Culture Culture District District Sinseondae Arena PORT OF BUSAN Your dream to the world * 11 *

12 ㅣ CoreBusinessofBusanPortAuthority NEw PORt CONtAiNER terminal BUSAN PORT AUTHORITY * 12 *

13 West Container Terminal North Container Terminal South Container Terminal Multipurpose Pier CONTAINER TERMINAL Development of 45 Berths by 2020 Your dream to the world Annual handling capacity of 16 million teus terminal Phase Opening Berth Total North Container Terminal In operation Multipurpose Pier South Container Terminal 2-4 After West Container Terminal Multipurpose Terminal To be developed After After Feeder Pier 4 To be developed Phase 3 8 * 13 *

14 ㅣ CoreBusinessofBusanPortAuthority NEw PORt DiStRiPARK DEVELOPMENt BUSAN PORT AUTHORITY * 14 *

15 Additional Development Site (Scheduled) Phase 3 Tourism and Leisure Complex Ungdong Distripark Phase 2 West Distripark Phase 1 West Distripark Phase 2 Ungdong Distripark Phase 1 West Container Terminal North Distripark Phase 2 North Distripark Phase 1 North Container Terminal To Is. South Container Terminal Multipurpose Pier South Distripark Your dream to the world DISTRIPARK Division Size Completion North Distripark 2.22 km2 Phase km2 Completed Phase km Ungdong Distripark 3.61 km2 Phase km2 Completed Phase km West Distripark Phase km Phase km South Distripark 1.44 km * 15 *

16 ㅣ CoreBusinessofBusanPortAuthority NORtH PORt CONtAiNER terminals Multiple Multiple Port Port District District (International (International Passenger Passenger / Cruise) Cruise) District Marine Culture Culture North Port Redevelopment Area BUSAN PORT AUTHORITY Port Facilities (Coastal Passenger / Cruise Ships) MAIN CONTAINER TERMINAL Name of Container Terminal Terminal Operator Pier Length Water Depth Jaseongdae(HKT) Hutchison Korea Terminals Co., Ltd. 1,447m 15m Uam(UTC) - 500m 11m * 16 *

17 Your dream to the world Sinseondae Arena Singamman(DPCT) Dongbu Busan Container Terminal Co., Ltd. 826m 15m Gamman(BIT) Busan International Terminal Co., Ltd. 1,400m 15m Sinseondae(KBCT) CJ Korea Express Busan Container Terminal Co., Ltd. 1,500m 15~16m * 17 *

18 ㅣ CoreBusinessofBusanPortAuthority NORtH PORt REDEVELOPMENt BUSAN PORT AUTHORITY * 18 *

19 Your dream to the world REDEVELOPMENT Location Coast and International Ferry Terminal, Control Pier, and Pier 1~4 Size 1,532,419 m2 Period 2008~2019 Budget KRW 8 trillion and 519 billion (USD 8.5 billion) -Infrastructure : KRW 2 trillion and 38.8 billion -Superstructure : KRW 6 trillion and billion USD1=KRW1,000 * 19 *

20 ㅣ CoreBusinessofBusanPortAuthority NEw international PASSENGER terminal BUSAN PORT AUTHORITY Location Busan North Port Pier 3~4 Size Terminal 92,945 m2 (Basement, 5-floors Above Ground), Gangway, Cargo Warehouses, Etc. - Main Facilities : Immigration CIQ Facility, Amenities, Conference Halls Pre-tenant Institutions (13 Institutions) - Dongbaek Cultural Publishers Inc. (Information), CIQ, Military base, Public Prosecutors' Office & Police Department, Cultural Heritage Administration, Busan City (Tourism Promotion Division), Etc. Period 31 Jul Jan * 20 * Budget Approx KRW billion (by BPA)

21 NEW INTERNATIONAL PASSENGER TERMINAL Your dream to the world * 21 *

22 ㅣ BusanPortStatistics BuSAN PORt StAtiStiCS Container Throughput of Busan Port (Unit:'000TEU) BUSAN PORT AUTHORITY Container Throughput of Busan North Port and New Port (Unit:'000TEU) * 22 *

23 Container Throughput of World's Top5 Major Ports (Unit:'000TEU) Your dream to the world Container Throughput of Korean Ports Container T/S Throughput of Korean Ports (Unit:'000TEU) (Unit:'000TEU) ()indicatesthroughputin2012 * 23 *

24 ㅣ ReferenceforSisterPorts BUSAN PORT AUTHORITY * 24 *

25 REfERENCE for SiStER PORtS 2. Port of Seattle, USA (Date of Sister Port Agreement : 06/01/81) 1. Port of Southampton, UK (Date of Sister Port Agreement : 05/05/78) 3. Osaka Port, Japan (Date of Sister Port Agreement : 08/06/85) 4. Port of Rotterdam, Holland (Date of Sister Port Agreement : 11/01/85) B U S A N P O R T 5. Port of New York, USA (Date of Sister Port Agreement : 05/24/88) Your dream to the world 6. Shanghai Port, China (Date of Sister Port Agreement : 04/12/94) 7. Port of Los Angeles, USA (Date of Sister Port Agreement : 10/16/06) 8. Port of Miami, USA (Date of Sister Port Agreement : 09/09/09) 10. The Port of Long Beach,USA (Date of Sister Port Agreement : 11/04/13) 9. Hamburg Port, Germany (Date of Sister Port Agreement : 12/03/10) * 25 *

26 Our Integrity Index Future Index of Busan Port Cyber Shinmungo

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