Busan Port New Port Second Container Terminal Operator Finally Selected as 'Dongwon Consortium'

Busan Port Authority signed a preliminary lease agreement for the operation of the West Container Terminal at Busan New Port with the 'Dongwon Consortium' on the 29th.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] The Dongwon New Port Container Terminal Consortium has been finally selected as the operator of the West Container Terminal at Busan New Port.

Busan Port Authority (BPA) announced on the 29th that it selected the "Dongwon Consortium" as the operator of the West Container Terminal at Busan New Port and signed a preliminary lease contract.

BPA selected the Dongwon Consortium as the preferred negotiator through an open competitive bidding process on August 20 and negotiated the detailed terms of the preliminary lease contract.

The deadline for the preferred negotiation was extended once to verify the volume attraction plan raised by the Ministry of Oceans and Fisheries and to consult with the dockworkers' union.

A BPA official explained the reason for shortening the negotiation period, saying, "In the first public offering held in the first half of 2020, the contentious negotiations over the transfer of volume from Bukhang were prolonged, but this time the preferred negotiator proposed a plan to transfer about 1 million TEU of volume handled at Bukhang 100% to the New Port, resolving the issue."

The Dongwon Consortium will operate a total of six berths by integrating the West Container Terminal phases 2 to 5, phases 2 to 6, and the feeder terminal for 30 years starting from July 2023, when phases 2 to 5 of the West Container Terminal begin operation.

Additionally, it will provide advanced cargo handling services by utilizing automated equipment (9 container cranes, 46 transfer cranes) to be installed by BPA.

Dongwon Busan Container Terminal, a member of the consortium, plans to transfer the volume and workforce previously handled at Bukhang Shingamman Terminal to the New Port, which is expected to minimize excessive competition among multiple terminal operators within the New Port.

It is anticipated that if systems such as the reform of the cargo handling fee approval system and volume-linked rent are supported, the cargo handling market within the New Port will stabilize further.

Hanjin, the largest shareholder of the adjacent New Port 3rd Terminal operator, is expected to establish a foundation for integrated operation between the New Port 3rd Terminal and the West Container Terminal through equity participation.

President Nam Ki-chan said, "We have reviewed and promoted the Ministry of Oceans and Fisheries' requests, including additional verification of volume creation, legal feasibility review, and consultation with the dockworkers' union to the fullest extent," adding, "From a comprehensive perspective, signing the preliminary lease contract with the preferred negotiator is the optimal solution."

BPA plans to form the "Busan Port New Port West Container Terminal Opening Preparation Council" with the Dongwon Consortium to prepare for the normal opening in July 2023.

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