Northeast Asia Container Trade & Busan Port
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1 Busan Port, the Global Hub Port beyond borders Northeast Asia Container Trade & Busan Port Busan Port Authority
2 Contents 1 Northeast Asian Ports & Container Trade 2 Current Status of Busan Port 3 Busan Port Development Strategy 4 Busan Port in Northeast Asia
3 Northeast Asia Economy Northeast Asia Harbin Changchun Vladivostok One of the most economically vibrant regions in the world Taiyuan Beijing Tianjin Shenyang Tangshan Dalian Qingdao Busan Tokyo Shifting Economic Gravity in Asia Pacific to NEA Chengdu Xi an Chongqing Wuhan Nanjing Shenzhen NEA, 22% of global GDP Guangzhou Hong Kong Suzhou Hangzhou Xiamen Shanghai Taipei Annual GDP Growth rate 6.4%(NEA) vs. 2.4%(World) Osaka Fukuoka Nagoya Significance of Intra trade * IMF, World Economic Outlook
4 Northeast Asia Trade Share of World Import & Export Trade (2005 & 2015) Export Import 43% 32% 53% 44% 68% 57% 47% 56% * Source : UNESCAP Asia & Pacific Rest of the World Asia & Pacific Rest of the World
5 Northeast Asia Container T/put Unit :,000 TEU, Share : % 42.0% N.E.Asia World 38.4% 38.8% 39.5% 40.1% 41.6% * Source : Drewry Maritime Research
6 World top 10 container ports 8 out of 10 World Largest Container Ports are in N.E (Million TEUs) No Port, Country Shanghai, China Singapore, Singapore Hong Kong, China Shenzhen, China Busan, South Korea Ningbo-Zhoushan,China Guangzhou Harbor, China Qingdao, China Jebel Ali, UAE Tianjin, China * Source : World Shipping Council
7 Northeast Asian Ports China : Constant investment into Port Construction with taking 24.2 % of world s total container T/Put in 2011 HK Tianjin Shenzhen Guangzhou * Source World s Shipping Council, UNCTAD Qingdao Shanghai Ningbo- Zhoushan Busan Japan : Strategic International Container Ports Hanshin 4.97 Kyohama Located on the main trunk route - Sophisticated Feeder network connecting 60 ports in Japan and 45 ports in China
8 Contents 1 Northeast Asian Ports & Container Trade 2 Current Status of Busan Port 3 Busan Port Development Strategy 4 Busan Port in Northeast Asia
9 Busan Port 25 km North Port New Port
10 Busan North Port North Port 5 terminal Operators (20 berths)
11 Busan New Port Opening : berths, under operation Complete construction by 2020 Handling capacity : 15M TEU Water depth : 15 ~ 17m
12 Busan Port Container T/Put(2008~2012) (Unit : 000TEU) 5.3% 18,000 16,000 14,000 12,000 10,000 8,000 6,000 13,453 7,638 Total Local T/S 10.2% -10.9% 1.4% 11,980 6,569 (11.6%) (-0.1%) 5,808 5,372 14,194 7,836 (-7.5%) 6, % 16,185 8,832 (16.8%) 7,353 17,046 8,808 (10.7%) 8,142 4,000 2,000 0 '08 '09 '10 '11 '12
13 Busan Port T/Put(Jan~Aug, 2013) Total T/put : 11.7 million TEU (3.6% Increase) - Import/Export : 5.9million TEU (1.5% Increase) - T/S : 5.7 million TEU (7.2% Increase) (Unit :,000 TEU,%) T/put Jan ~ Aug, 2012 Jan ~ Aug, 2013 Growth Rate(%) 2013 (Revised forecast) Growth rate Total 11,350 11, , L/C 5,873 5, , Import 2,927 2, , Export 2,946 3, , T/S 5,406 5, ,
14 Domestic market share(jan~aug, 2013) Gwangyang 9.5% (4.3% ) Pyeongtaek Incheon 2.1% 9.0% Ulsan Others 1.7% 2.3% (2.2% ) (5.3% ) (8.8% ) Busan 75.8% (3.6% ) Busan Port s Share 2010 (73%) -> ~8 (75.8%)
15 Main Strengths of Busan Port Geographical Location Located on the main-trunk route Cost Competitiveness Sophisticated Feeder Network 60 in Japan, 45 in China Busan Port, global hub port beyond borders Weather Condition Less Typhoon & Sea fog Excellent Connectivity 358 weekly services Deep Water Fully enough to accommodate Triple-e
16 Weekly service at Busan Port Total 61 carriers - Korean carriers : 15(150 weekly services) - Foreign carriers : 46(208 weekly services) N.A :50 EUR :24 S.A : weekly services CHN :45 M.E :12 RUS :14 S.E.A :77 JPN :69 AFRICA :1 OCEANIA :27 This study, conducted by BPA at the end of 2012
17 Feeder Network with N.E.Asia Network Sophisticated Feeder Network U.S 1.5D 2D 9D 1.5D 2D 1D 25 D Japan : 60 ports China : 45 ports Europe Russia : 5 ports
18 Main Projects at Busan Port Busan New Port Construction New Port Distripark Development North Port Redevelopment
19 Busan New Port development Phase 2-4 Phase Berths (TBD) 3 Berths (TBD) 1.05km 1.05km Phase Berths (TBD) 0.7km 1.4km Phase 2-3(BNCT) 4 BERTHS(2012) HJNC 4 BERTHS 1.1km 2.0km PNC 6 BERTHS 1.2km PSA 3 BERTHS HPNT 4 BERTHS 1.15km 700m Multi Purpose TML Connecting Pier
20 Distripark Development 3.57M m2, 2011~ M m2, 2005~ M m2, 2011~2015
21 Northern Distripark At present, 30 companies are under operation
22 Distripark Development plan Applicable Business Tax incentives & benefits Assembling Packaging * USD v Lease Terms and Conditions - Lease Period : Max. 50 Years - Lease Fee : 4~26 cents/ m2 /month (Logistics Companies) Storage Stevedoring v National Tax % Exemption for first 3 Years - 50 % Exemption for next 2 years - Zero VAT v Local Tax - 100% Exemption for first 15years
23 Contents 1 Northeast Asian Ports & Container Trade 2 Current Status of Busan Port 3 Busan Port Development Strategy 4 Busan Port in Northeast Asia
24 Busan New Port Construction Total 45 berths at Busan New Port - As of now, 23 berths have been completed (21 container terminals, 1 multi-purposed terminal, 1 ro-ro terminal) - Additional 22 berths to be completed (13 container terminals, 4 feeder terminals, etc)
25 Busan Port New Port Expansion The Korean government released the 3 rd National Port Development plan to construct additional 15berths at Busan New Port. General Pier Ro-Ro TML Container TML Feeder TML Grain TML Multi TML Feeder TML Feeder TML
26 Phase 2-5 & 2-6 Construction Phase 2-5 Phase Berths Construction period : ~ Budget : KRW Billion Handling Capacity : 800,000 TEU/ Year 3 Berths Construction period : ~ Budget : KRW Billion Handling Capacity : 1,200,000 TEU/ Year
27 Busan Redevelopment Project Redevelopment Target Area Size : 1,511,450 m2 Total Budget : US$ 8.5 billion From 2009 ~ 2019 (Infrastructure + Superstructure) HBCT UTC Central Pier Pier 1 Pier 2 Pier 3 Pier 4 Pier 3 : Close (Jan, 2012) Pier 4 : Close(Jan, 2012) DPCT Pier 1 & 2 : Operate until Dec, 2014 Gamman KBCT Container terminals will remain the same.
28 Master plan of the Redevelopment 09.3 월항운노조보상협상완료 09.4 월상부시설민간사업자공모 Phase for Infrastructure Construction. Superstructure such as buildings will be completed by 2019.
29 Contents 1 Northeast Asian Ports & Container Trade 2 Current Status of Busan Port 3 Busan Port Development Strategy 4 Busan Port in Northeast Asia
30 Busan Port in Northeast Asia Eastern Gateway to Russia Largest Manufacturing Base Logistics Hub Huge market (Within 3hr Flight) - 40% of World s Container Vol. - 25% of World Population 3 rd Largest Economy Located on the main trunk route More than 500 ports in 100 countries
31 Busan Port t/put by region No Region (unit : teu) Jan ~ Aug, 2012 Jan~Aug, 2013 Growth rate(%) TTL L/C T/S TTL L/C T/S TTL L/C T/S 1 Northeast Asia 3,557,650 1,489,495 2,068,155 3,818,652 1,597,567 2,221, North America 1,906, , ,187 1,933, ,273 1,021, Japan 1,716, , ,438 1,829, , , Southeast Asia 1,120, , ,861 1,232, , , Europe 843, , , , , , Middle East 525, , , , , , South America 487, , , , , , Central America 411, , , , , , Oceania 321, , , , , , Southwest Asia 214, ,975 85, , ,256 97, Africa 172, ,382 68, ,967 70,569 66, Others , ,
32 Cooperation between Northeast Asian Port Country City Port Signed Contracts China Shanghai Shanghai Port Sister Port Agreement China Shanghai SIPG Cooperation Exchange MOU China Tianjin Tianjin Port Group Friendship Agreement China Dafeng Dafeng Port Group Friendship Agreement China Dalian Dalian Port Authority Friendship Agreement China Suifenhe Suifenhe municipal government Logistics Cooperation MOU China Qingdao Qingdao Port Group Logistics Cooperation MOU China Huizhou Huizhou Port Group Logistics Cooperation MOU Japan Niigata Niigata Prefecture Logistics Cooperation MOU Japan Osaka Osaka Port Sister Port Agreement
33 Busan Port in Northeast Asia Cooperation among the N.E.Asia ports for co-prosperity and sustainable development N.E.Asia = Common Economy Community CHINA KOREA JAPAN Shanghai Ningbo Dalian Qingdao Tianjin Etc. Busan Incheon Gwangyang Ulsan Etc. Add Your Text Yokohama Kobe Osaka Niigata Fukuoka Etc.
34 Busan Port in Northeast Asia Busan Port is not the port of Korea but the port of Northeast Asia Global Hub Port beyond borders in Northeast Asia
35 Thank YOU!
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