The 17th Anniversary of Busan Port Authority, Korea's First Port Public Corporation

Busan Port Cargo Volume 10.41 Million TEU in 2004 ⇒ 22.7 Million TEU Achieved in 2021

Development of Future Digital Twin-Based Smart Port and Ship Integrated Service Platform

Busan Port Authority held an online ceremony on the 15th to celebrate its 17th anniversary.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Busan Port Authority (BPA, President Nam Ki-chan) held an online founding anniversary ceremony on the 15th to celebrate its 17th anniversary. Busan Port Authority was established in 2004 as Korea's first port public enterprise.

The founding ceremony proceeded in the order of President Nam Ki-chan's commemorative speech, commendation of meritorious persons, a harmony speech by Park Shin-ho, the labor union chairman, the announcement of the ‘BPA Vision Declaration,’ and the presentation of ‘17th Anniversary Management Achievements and Future Tasks.’

President Nam Ki-chan said, “Despite concerns that the cargo volume at Busan Port would sharply decline due to COVID-19, last year the transshipment cargo volume at Busan Port increased by 3%.”

Busan Port Authority, which announced a new vision as a ‘Global Hub Port Company Connecting the World,’ has achieved remarkable growth over the past 17 years.

Busan Port Authority started in 2004 with 106 employees, assets of KRW 3.4556 trillion, and a budget of KRW 143.4 billion. As of January 2021, it has grown to 266 employees (a 150.9% increase), assets of KRW 6.293 trillion (an 82.1% increase). The budget entered the KRW 1 trillion era (KRW 1.3339 trillion) starting last year.

The handled cargo volume increased more than twofold from 10.41 million TEU in 2004 to an estimated 21.77 million TEU in 2020. In particular, despite the COVID-19 crisis, the transshipment volume in 2020 recorded 11.99 million TEU (transshipment ratio 55.1%), a 3% increase from the previous year, solidifying its status as the world's second-largest transshipment port.

The added value generated from handling transshipment cargo was KRW 1.8 trillion in 2020 (approximately KRW 150,000 per transshipment TEU), demonstrating the significant economic impact of Busan Port.

In terms of port facilities, the number of container berths has increased from 20 in 2004 to a total of 42 currently developed and operated. The length of container ship berthing facilities increased 2.2 times from 5.7 km in 2004 to 12.7 km in 2020.

The number of large vessels (over 50,000 tons) entering the port increased by 142.1%, from 1,691 in 2004 to 4,094 in 2020, establishing Busan Port as a global logistics hub capable of accommodating ultra-large vessels.

Busan Port is promoting transformation into a comprehensive logistics port by developing and operating a 4.19 million square meter hinterland logistics complex beyond its cargo handling functions. It is also fostering the marine tourism industry through cruise and international passenger services and creating a port ecosystem by supporting small-scale port-related businesses.

Furthermore, for sustainable future growth, it is currently undertaking a total of 12 government R&D projects, including the ‘Development of Digital Twin-based Smart Port-Ship Linked Services and Platforms.’

Starting with the construction of a 30,000 square meter logistics center in Rotterdam, Netherlands, it is expanding its global logistics network by entering ports such as Barcelona and Probolinggo Port in Java, Indonesia.

The North Port Redevelopment Project (Phase 1), Korea's first port redevelopment project which broke ground in 2008, covers an area of 1.53 million square meters with a total investment of KRW 8.9 trillion and is scheduled for completion in 2022 (75% progress as of December 2020). The North Port Redevelopment Project is expected to generate an economic ripple effect of KRW 31.5 trillion and create approximately 120,000 jobs.

Setting a target cargo volume of 22.7 million TEU for 2021, Busan Port Authority is focusing on realizing social value through the creation of a safe and eco-friendly port, strengthening Busan Port's global competitiveness through the advancement of port operation systems, and implementing a Busan Port that coexists and grows together with the local community and industry.

President Nam Ki-chan stated, “It is time to establish flexible countermeasures that strengthen public interest by turning the uncertainties caused by COVID-19 into opportunities for innovation,” adding, “BPA will fulfill its social responsibilities in the port industry sector, including eco-friendliness, port safety, coexistence and mutual growth, and job creation, and will steadily promote major projects such as overseas business expansion, North Port redevelopment, West Container Terminal, and Jinhae New Port (Second New Port) to further enhance Busan Port's global status.”

This content was produced with the assistance of AI translation services.