Busan Port, the Global Hub Port beyond borders Northeast Asia Container Trade & Busan Port Busan Port Authority
Contents 1 Northeast Asian Ports & Container Trade 2 Current Status of Busan Port 3 Busan Port Development Strategy 4 Busan Port in Northeast Asia
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
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
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% 2012 2013 2014 2015 2016 2017 * Source : Drewry Maritime Research
World top 10 container ports 8 out of 10 World Largest Container Ports are in N.E (Million TEUs) No Port, Country 2012 2011 1 Shanghai, China 32.58 31.74 2 Singapore, Singapore 31.65 29.94 3 Hong Kong, China 23.10 24.38 4 Shenzhen, China 22.94 22.57 5 Busan, South Korea 17.04 16.18 6 Ningbo-Zhoushan,China 16.38 14.72 7 Guangzhou Harbor, China 14.74 14.26 8 Qingdao, China 14.50 13.02 9 Jebel Ali, UAE 13.28 13.01 10 Tianjin, China 12.29 11.59 * Source : World Shipping Council
Northeast Asian Ports China : Constant investment into Port Construction with taking 24.2 % of world s total container T/Put in 2011 HK 23.10 Tianjin 12.29 Shenzhen 22.94 Guangzhou 14.74 * Source World s Shipping Council, UNCTAD Qingdao 14.50 Shanghai 32.58 Ningbo- Zhoushan 16.83 Busan 17.04 Japan : Strategic International Container Ports Hanshin 4.97 Kyohama 7.80 - Located on the main trunk route - Sophisticated Feeder network connecting 60 ports in Japan and 45 ports in China
Contents 1 Northeast Asian Ports & Container Trade 2 Current Status of Busan Port 3 Busan Port Development Strategy 4 Busan Port in Northeast Asia
Busan Port 25 km North Port New Port
Busan North Port North Port 5 terminal Operators (20 berths)
Busan New Port Opening : 2006 22 berths, under operation Complete construction by 2020 Handling capacity : 15M TEU Water depth : 15 ~ 17m
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%) 6,276 18.5% 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
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 11,761 3.6 17,710 3.9 L/C 5,873 5,963 1.5 9,011 2.3 Import 2,927 2,948 0.7 4,426 1.0 Export 2,946 3,015 2.4 4,585 3.6 T/S 5,406 5,794 7.2 8,694 6.7
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%) -> 2013.1~8 (75.8%)
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
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 :39 358 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
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
Main Projects at Busan Port Busan New Port Construction New Port Distripark Development North Port Redevelopment
Busan New Port development Phase 2-4 Phase 2-6 3 Berths (TBD) 3 Berths (TBD) 1.05km 1.05km Phase 2-5 2 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
Distripark Development 3.57M m2, 2011~2020 1.7M m2, 2005~2010 1.42M m2, 2011~2015
Northern Distripark At present, 30 companies are under operation
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 - 100 % Exemption for first 3 Years - 50 % Exemption for next 2 years - Zero VAT v Local Tax - 100% Exemption for first 15years
Contents 1 Northeast Asian Ports & Container Trade 2 Current Status of Busan Port 3 Busan Port Development Strategy 4 Busan Port in Northeast Asia
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)
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
Phase 2-5 & 2-6 Construction Phase 2-5 Phase 2-6 2 Berths Construction period : 2008. ~ 2018. Budget : KRW 307.6 Billion Handling Capacity : 800,000 TEU/ Year 3 Berths Construction period : 2008. ~ 2019. Budget : KRW 475.7 Billion Handling Capacity : 1,200,000 TEU/ Year
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.
Master plan of the Redevelopment 09.3 월항운노조보상협상완료 09.4 월상부시설민간사업자공모 Phase for Infrastructure Construction. Superstructure such as buildings will be completed by 2019.
Contents 1 Northeast Asian Ports & Container Trade 2 Current Status of Busan Port 3 Busan Port Development Strategy 4 Busan Port in Northeast Asia
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
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 2,221,085 7.34 7.26 7.39 2 North America 1,906,767 926,579 980,187 1,933,437 912,273 1,021,164 1.4-1.54 4.18 3 Japan 1,716,411 898,974 817,438 1,829,689 925,386 904,303 6.6 2.94 10.63 4 Southeast Asia 1,120,267 692,406 427,861 1,232,613 726,083 506,531 10.03 4.86 18.39 5 Europe 843,910 592,890 251,020 828,101 587,326 240,775-1.87-0.94-4.08 6 Middle East 525,994 395,561 130,433 509,345 347,842 161,503-3.17-12.06 23.82 7 South America 487,098 257,741 229,357 477,031 236,269 240,762-2.07-8.33 4.97 8 Central America 411,906 208,751 203,155 406,463 237,316 169,147-1.32 13.68-16.74 9 Oceania 321,025 176,914 144,111 345,135 181,876 163,259 7.51 2.8 13.29 10 Southwest Asia 214,422 128,975 85,448 237,576 140,256 97,320 10.8 8.75 13.89 11 Africa 172,629 104,382 68,247 136,967 70,569 66,398-20.66-32.39-2.71 12 Others 988 308 680 2,237 190 2,047 126.42-38.31 201.03
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
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.
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
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