19th January 2016
Busan Port Authority confident of reaching 20 million TEU throughput in 2016 and announces international business development initiative
Client news
Handling 20 million TEU in 2016
Busan Port Authority (BPA) announces that it is on track to handle 20 million TEU of container cargo in 2016, which represents a 2.8% increase from 2015. (In 2015, the port recorded 19.45 million TEU* of which 9.336 million TEU was local cargo and 10.114 million TEU was transshipment cargo – these numbers were up by 0.9% and 7.3% respectively from the year before.)
In light of a sluggish shipping market and an average growth rate of around 4% seen by the world’s top 10 ports in 2015, BPA’s ambition for 2016 is challenging. However, the port is confident of achieving this growth by strengthening its customer service activities; subsidizing the cost of inter-terminal transportation of transshipment cargo; and establishing an empty cargo storage area in the New Port. In addition, BPA will hasten its integration plans at North Port to deliver a single unified terminal operator which will also become a shareholder. Additional terminal construction at New Port will be accelerated to meet current cargo demand and to ease congestion at peak times.
In 2016, more focus will also be directed at the development of the Distripark to attract more multi-national logistics companies as tenants. This will also result in heightened cargo throughout and create additional employment.
Achieving global growth in 2016
To assist growth, BPA also announces the creation of a new International Business Division to boost its penetration of global markets and to react to the rapidly changing shipping and maritime landscape.
Key activities of the new division are:
• Global expansion of the port’s logistics network
• Identification and realization of new business opportunities assisted by BPA’s representative offices in China, Japan and Europe and its world-wide agency network
• Enhanced research and analysis of key markets and trends and the establishment of big data
In addition, BPA will enhance its current cooperation activities with other ports, particularly those in developing countries to share its knowledge and experience in port operation and management. The port believes that these initiatives will drive global port throughput and widen the port’s logistics network
Making these announcements, Mr Yejong WOO, CEO of Busan Port Authority said:
“As one of the world’s largest container ports, we must focus our efforts on the international markets to ensure our continuing growth and development. We are well placed, geographically, to handle domestic, international and transshipment cargoes and our modern terminal facilities and extensive Distripark make us an excellent choice for vessel and cargo owners. We will continue to diversify our portfolio and enhance the service we deliver to our customers in 2016 and beyond”
* Container handling throughput for 2015 is estimated and the final confirmed numbers will be released in mid-February, 2016.
Ends.
Notes to editors
In 2003, the Korean central government handed over the management of Busan Port to a newly organized port authority to develop Busan Port into one of the world’s leading ports, planning to take full advantage of the port authority system: quick decision-making, flexible and independent organizational management and self-supporting finance. To achieve this goal, the Port Authority Act was established and the Busan Port Authority (BPA) was founded on Jan 1st 2004.
BPA is responsible for:
• development of the port facility and port operation
• research activities for port development, port operation and human resources in the port
• operation and management of the integrated logistics terminal and port distribution facility
• development of pork worker welfare facility
• operation of projects delegated by central and local government
For more information contact:
Mrs Jinsun SHIN, General Manager, BPA London Office
jsshinbpa@gmail.com
Issued by:
Navigate PR (London)
Mike Elsom, melsom@navigatepr.com / +44 (0)20 3326 8464 (office) / +44 (0)7968 196077 (cell)