Port Logistics in Busan Port

Sokchang KwonDirector of Port & Logistics Division

Busan office, Ministry of Maritime Affairs and Fisheries, Korea

Port Logistics in Busan Port

Republic of Korea

The Busan Port

What is going to be presented about Busan PortWhat is going to be presented about Busan Port

Introduction to Busan PortIntroduction to Busan Port

Transportation System of Busan PortTransportation System of Busan Port

General trend of international port logisticsGeneral trend of international port logistics

SWOT analysis on Busan Port transportationSWOT analysis on Busan Port transportation

ConclusionsConclusions

Republic of Korea

The Busan Port

Introduction to Busan portIntroduction to Busan port

Overview

Briefs of Busan Port

Facilities

Distripark in Busan New Port

Republic of Korea

The Busan Port

Gamcheon Harbor

South Harbor

Dadaepo Harbor

North HarborBusan New Port

Busan Port is located at the gate of Korean peninsular

Overview : Busan Port

Republic of Korea

The Busan Port Overview : Busan Port

Republic of Korea

The Busan Port

General Information

Port open date 1876. 9. 11

Water depth (-)5m ∼ (-)15m

Length of coast 202km

Area of water 243㎢

Port open date 1876. 9. 11

Water depth (-)5m ∼ (-)15m

Length of coast 202km

Area of water 243㎢

Calling vessels 55,608 ships

Calling vessels per day 152.3 ships

Container Cargo handling 11.4 million TEU

Total cargo handling tonnage 169,264,000 t

Calling vessels 55,608 ships

Calling vessels per day 152.3 ships

Container Cargo handling 11.4 million TEU

Total cargo handling tonnage 169,264,000 t

Briefs of Busan Port

’04 Operation Record

Republic of Korea

The Busan Port Briefs of Busan Port

Republic of Korea

The Busan PortBriefs of Busan Port:

Construction Status

Republic of Korea

The Busan PortBriefs of Busan Port:

Outline of Busan New Port

Outline of Development Construction Plan

• Purpose : Expand port facilities

• Period : 1995 ~ 2011

• Project total cost : 7.8 billion dollars

- Government : 3.6 billion dollars

- Private : 4.2 billion dollars

• Total size : 30 berths

• North container terminal : 13 berths

- Private : 9 berths

- KCTA(Korea Container Terminal

Authority) : 4 berths

• South container terminal : 11 berths

- Government : 4 berths

- Private : 7 berths

• West container terminal : 5 berths

• Multipurpose terminal : 1 berths

Republic of Korea

The Busan Port

Terminal Construction Plan

Classification Total 2005 2006 2007 2008 2009 2010 2011

No. of berths 30 3 3 1 11 4 3 5

- Government 5 - - 1 4 - - -

- PNC.co 9 3 3 - 3 - - -

- KCTA 9 - - - 4 - - 5

- Other Private 7 - - - - 4 3 -

No. of berths 30 3 6 7 18 22 25 30

Total capacity(1,000 TEU)

8,040 900 1,800 1,910 4,430 5,640 6,540 8,040

Briefs of Busan Port:

Outline of Busan New Port

Republic of Korea

The Busan Port

Conventional Piers

Name- Pier 1

Cargo handling - 3,646,205 tons

Berthing vessel- 2,430 ships

Facility- 1,089m(DWT10,000＊3)

Draft- 9m

Name- Pier 1




Draft- 9m

Pier 1

Facilities - North Harbor

Republic of Korea

The Busan Port

Pier 2

Conventional Piers

Name- Pier 2



Name- Pier 2



Facility- 924m(DWT20,000＊1)(DWT10,000＊1)(DWT 4,000＊1)

Draft- 9m

Facility- 924m(DWT20,000＊1)(DWT10,000＊1)(DWT 4,000＊1)

Draft- 9m


Republic of Korea

The Busan Port

Central Pier

Conventional Piers

Name- Central Pier



Name- Central Pier



Facility- 646m

(DWT10,000＊3)

Draft- 9m

Facility- 646m

(DWT10,000＊3)

Draft- 9m


Republic of Korea

The Busan Port

Pier 3

Conventional Piers

Name- Pier 3

Cargo handling - 7,703,769 ton


Name- Pier 3

Cargo handling - 7,703,769 ton


Facility- 1,145m(DWT20,000＊1)(DWT10,000＊3)(DWT 5,000＊2)

Draft- 9m


Draft- 9m


Republic of Korea

The Busan Port

Pier 4

Conventional Piers

Name- Pier 4



Name- Pier 4


Berthing vessel- 1,774 shipsFacility- 1,311m(DWT20,000＊1)(DWT10,000＊4)(DWT 5,000＊2)

Draft- 5.5 m~ 8 m


Draft- 5.5 m~ 8 m

Facilities – North Harbor

Republic of Korea

The Busan Port

Conventional Piers

Name- Pier 8

Cargo handling - 892,296 tons

Berthing vessel- 222 sips

Name- Pier 8

Cargo handling - 892,296 tons

Berthing vessel- 222 sipsFacility- 1,001m(DWT15,000＊3)(DWT10,000＊1)(DWT 5,000＊1)

Draft- 5 m~ 10m


Draft- 5 m~ 10m


Republic of Korea

The Busan Port

Name- International

Passenger Terminal

Visiting Passengers- 1,361,808 persons

Berthing Vessel- 1,404 ships

Name- International

Passenger Terminal

Visiting Passengers- 1,361,808 persons

Berthing Vessel- 1,404 ships

Passenger Terminal

Facility- 460m(DWT10,000＊1)(DWT 3,000＊1)

Draft- 4.6m ~ 8.5m


Draft- 4.6m ~ 8.5m


Republic of Korea

The Busan Port

Name- Jaseongdae

Cargo handling - 1,820,628 TEU


Name- Jaseongdae



Container Terminal

Facility- 1,477m(DWT50,000＊4)(DWT10,000＊1)

Draft- 15m

Facility- 1,477m(DWT50,000＊4)(DWT10,000＊1)

Draft- 15m


Republic of Korea

The Busan Port

Name- Uam

Cargo handling - 548,021 TEU

Berthing vessel- 649 ships

Name- Uam



Container Terminal


Draft- 11m


Draft- 11m


Republic of Korea

The Busan Port

Name- Singamman



Name- Singamman



Container Terminal

Capacity- 826m(DWT50,000＊2)(DWT 5,000＊1)

Draft- 15m

Capacity- 826m(DWT50,000＊2)(DWT 5,000＊1)

Draft- 15m


Republic of Korea

The Busan Port

Name- Gamman



Name- Gamman



Container Terminal


Draft- 15m


Draft- 15m


Republic of Korea

The Busan Port

Name- Sinsundae



Name- Sinsundae



Container Terminal


Draft- 15m~ 16m


Draft- 15m~ 16m

Facilities – North Harbor

Republic of Korea

The Busan Port

Name- Grain Terminal



Name- Grain Terminal



Grain Terminal


Republic of Korea

The Busan Port

Name- Southern Fishery

Port

Main Cargo - Marine Products

Berthing Capacity- 103 Berths

Name- Southern Fishery

Port

Main Cargo - Marine Products

Berthing Capacity- 103 Berths

Southern Fishery Port

Facilities - South Harbor

Republic of Korea

The Busan Port

Name- Central Pier



Name- Central Pier



Conventional Pier

Facilities - Gamcheon Harbor

Republic of Korea

The Busan Port

Name- Gamcheon Hanjin



Name- Gamcheon Hanjin



Container Terminal

Facility- 600m(DWT50,000＊2)

Draft- 13m

Facility- 600m(DWT50,000＊2)

Draft- 13m

Facilities - Gamcheon Harbor

Republic of Korea

The Busan Port

Name- Dadaepo Harbor

Main Cargo- Coastal marine products

Berthing Capacity

- 25,000 DWT X 2

Characteristics

- Multipurpose Pier

Name- Dadaepo Harbor

Main Cargo- Coastal marine products

Berthing Capacity

- 25,000 DWT X 2

Characteristics

- Multipurpose Pier

Conventional Pier

Facilities - Dadaepo Harbor

Republic of Korea

The Busan Port Master Plan for Distrikpark

Woongdong complex

Distriparks for North container terminal

Distriparks for south container terminal

Republic of Korea

The Busan Port Basic Concept of Distriparks

□ Land utilization plan of New port area

-- Create distriparks for logistics business in North and South Create distriparks for logistics business in North and South

container terminalcontainer terminal

-- Create Free Economic Zone to promote a hub role in NorthCreate Free Economic Zone to promote a hub role in North--

East Asian regionEast Asian region

□ Land utilization plan for Woongdong area

-- Establish functions of logistics and distribution center to enhance Establish functions of logistics and distribution center to enhance growth possibility and vitalization of Busan New Port in the future.growth possibility and vitalization of Busan New Port in the future.

-- Maintain coMaintain co--relationship between logistics and leisure & relationship between logistics and leisure &

tourism to strengthen Selftourism to strengthen Self--sufficient logistics sufficient logistics

Republic of Korea

The Busan Port

• Area : about 3.083 Mil.㎡

logisticslogistics

residentialresidential

commercialcommercial

North container terminalNorth container terminal

Specific Plan – Distriparks

Specific Land utilization plan of distriparks in North container terminal

Republic of Korea

The Busan Port

General trend of international port logistics

General trend of international port logistics

Republic of Korea

The Busan Port

- Container cargo of NE Asia is expected to reach at 1.36 mill. TEUs in 2010, which accounts for 32% of global container cargo volume

266

84

2002

423

136

2010

<Unit : Million TEU>

(World)

(World)

(NE Asia)

(NE Asia)

World : 5.97%

Annual average increasing rate

NE Asia: 6.21%

- Particularly, recent container cargo volume in China has been drastically increased at more than 30% per annual

General trend of International logistics

□ NE Asia has been emerged as the world three large trade region

Republic of Korea

The Busan Port

- Hub and spokes system, in which large vessels only call at hub ports

- Trend of container vessel being bigger is accelerating the adoption of Hub & Spokes system


□ The container vessels become larger and call at hub ports

※ 4,000TEU(’80s)→ 6,000(’90s)→8,000(’00s)→ 12,000TEU(future)

- International logistics has been changed into ‘the regional hub-based global logistics system’

Republic of Korea

The Busan Port

- Shanghai plans to build 52 berths additionally in Yangshan port, in which 5 berths will be completed by the end of 2005.

- Japan also established “Super hub-port plan”(in 2002), and has actively participated in the hub port construction competition.


□ Strong competition for becoming regional logistics hub.

Republic of Korea

The Busan Port

4,216 5,613 6,334 8,620 11,280 21.8(7) (6) (5) (4) (3)

2,986 3,993 5,076 7,614 10,650 29.0(11) (11) (8) (6) (4)

6,440 7,540 8,073 9,453 10,408 10.1(4) (3) (3) (3) (5)

6,985 7,426 7,541 8,493 8,840 4.8(3) (4) (4) (5) (6)

3,829 4,879 5,184 6,106 7,179 17.3(8) (7) (7) (8) (7)

6,342 6,275 6,096 6,506 7,107 2.3(5) (5) (6) (7) (8)

3,738 4,248 4,689 5,374 6,138 10.4(9) (9) (9) (9) (9)

3,614 4,082 4,218 4,777 5,445 8.5(10) (10) (11) (10) (10)

2,845 3,058 3,502 4,194 5,152 12.6(13) (15) (13) (13) (11)

2,550 3,207 3,760 4,533 4,841 13.7(15) (12) (12) (11) (12)

Dubai

Port Kla n g

Hamburg

Antwerp

L.A

Rotterdam

Busan

Kahosiung

Sh a n gh a i

Sh e n zh e n

General trend of International logistics:

The world’s top container ports

Republic of Korea

The Busan Port

Transportation System

in Busan Port

Transportation System

in Busan Port

Republic of Korea

The Busan Port Busan, a hub port in the world

Republic of Korea

The Busan Port Transportation Network

Expressway Network Railway Network

Republic of Korea

The Busan Port Access to the Busan New Port

Project titleOpening

year

Rear road Ⅰ 2008

Rear road Ⅱ 2011

Access roadⅠ 2006

Connection road

from Busan to Geoje2011

Project titleOpening

year

Rear railroad(Single) 2008

Access railroad to N-

Con.terminal(Single)2008

Road

Railway

Republic of Korea

The Busan Port

Container Non-container total

(TEU/Yr) % (TEU/Yr) % (TEU/Yr) %

Seoul 280,853 5.1% 1,380,885 12.5% 5,537,509 6.0%

Incheon 195,944 3.5% 244,012 2.2% 3,143,983 3.4%

Gyunggi 833,036 15.1% 509,437 4.6% 12,838,370 13.8%

Gangwon 6,705 0.1% 17,958 0.2% 117,192 0.1%

Busan 513,414 9.3% 5,025,854 45.4% 12,624,381 13.6%

Gyungnam 1,054,345 19.1% 1,611,805 14.6% 17,216,111 18.6%

Ulsan 793,480 14.4% 476,153 4.3% 12,219,657 13.2%

Daegu 250,199 4.5% 292,398 2.6% 3,995,343 4.3%

Gyungbuk 753,222 13.6% 845,531 7.6% 11,993,217 12.9%

Others 840,532 15.3% 661,427 6.0% 13,101,300 15.1

total 5,521,730 100.0% 11,065,460 100.0% 92,787,063 100.0%

O/D analysis

Republic of Korea

The Busan Port Composition of port transportation

Republic of Korea

The Busan Port

1998 1999 2000 2001 2002Increasing

rate

total 4,677 4,807 5,150 5,130 5,566 4.4%

Road 3,932 4,085 4,384 4,460 4,942 5.9%

84.0 85.0 85.1 86.6 88.8

607 593 650 551 580 -1.1%

13.0 12.3 12.6 11.0 10.4

Coastal Transportation

138 129 116 119 44 -24.9%

3.0 2.7 2.3 2.4 0.8

railway

(%)

(%)

(%)

Composition of port transportation

Republic of Korea

The Busan Port

SWOT analysis on Busan Port transportationSWOT analysis on Busan Port transportation

Republic of Korea

The Busan Port SWOT Analysis

Busan PortTransportation

Strength

Opportunity

Weakness

Threats

Republic of Korea

The Busan Port

Strength

SWOT analysis - Strength

Huge investment

Many of competitive logistics companies

Pre-planned transportation system in Busan New port

Republic of Korea

The Busan Port

Weakness

Centralization of transportation in Busan port

(some local ports should be developed to save inland transportation cost)

Centralization of inland transportation.

( no waterway available)

Not enough CY in and out of Busan Port

SWOT analysis - Weakness

Republic of Korea

The Busan Port

Opportunity

SWOT analysis - Opportunity

Recognize the importance of port logistics and support

logistics industry

Systematic and comprehensive road construction plans are

underway

Republic of Korea

The Busan Port

Threat

Increasing labor cost in port logistics industry

Keep the balance between development and environment``

Delay of construction projects due to environmental problems

Conflict between central government and local government

SWOT analysis -Threat

Republic of Korea

The Busan Port

Conclusions Conclusions

Republic of Korea

The Busan Port Lesson from Busan Port case

Railway is not a perfect solution for port logistics

Conflicts can exist between citizens’demand and port industry

Airport and seaport should be linked for a better system

Logistics center contains rest areas and top-notched system like RFID

As well as Road and railway construction

Long-term plan can save a huge amount of money

such as buying Land and compensation for residents etc.

Republic of Korea

The Busan Port Suggestions for new projects

Pre-planned transportation plan based on precise survey

Aggressive investment on infrastructure

Need of B/C analysis on choice of transportation

Benchmarking from failure cases

Logistics Experts’participation (Civil engineers’should be involved in establishing port logistics plans)

Republic of Korea

The Busan Port

Thank You

Documents

Port Logistics in Busan Port