BPA Selected as Preferred Negotiation Partner for Leasing and Operating Busan New Port Joint Logistics Center

Busan Port Authority (BPA) selected Kools as the preferred negotiator on the 5th to operate the Busan New Port Smart Joint Logistics Center, which will be established in Phase 1 of the West Container Hinterland of Busan New Port.

This logistics center is a facility that BPA is directly investing 80.9 billion KRW (26.6 billion KRW from the government, 54.3 billion KRW from BPA) to build on a 71,700㎡ site (including building area) in Phase 1 of the West Container Hinterland, with a total building floor area of 31,614㎡.

The authority formed a committee of 10 external experts and evaluated business capability and plans on August 30. Based on the evaluation results, BPA plans to conduct about one month of priority negotiations with Kools, who qualified as the preferred negotiator, and then conclude an implementation agreement for project execution and a free trade zone occupancy contract.

Aerial view of Busan Port New Port Smart Joint Logistics Center.

The Busan New Port Smart Joint Logistics Center is the first cutting-edge smart logistics facility introduced in a port hinterland in Korea, automating cargo storage and handling using advanced technologies such as robots, IoT (Internet of Things), big data, and AI (Artificial Intelligence).

It will also provide joint logistics functions to strengthen the competitiveness of companies marginalized in logistics infrastructure usage, such as small and medium-sized import-export shippers and logistics companies.

Kools, the preferred negotiator, plans to actively pursue investments exceeding 3 billion KRW in smart equipment, devices, and systems; develop warehouse management (WMS, Warehouse Management System) and transportation management (Truck Management System) systems to provide joint logistics services for small and medium logistics companies and shippers; and obtain Level 3 certification from the Ministry of Land, Infrastructure and Transport for smart logistics centers.

Established in 1999, Kools is a regional company based in Busan with about 23 years of experience in logistics-related businesses such as cargo handling, storage, transportation, 3PL logistics services, and operation of refrigerated logistics warehouses. Recently, it has also been promoting smart logistics projects utilizing information and communication technology (ICT).

Kang Jun-seok, President of BPA, said, “Since the Busan Port Smart Joint Logistics Center is the first project promoted to add high value to the hinterland and support small and medium shippers, the role of the operator is very important.”

He added, “We expect Kools to fully utilize its experience in operating hinterland logistics centers and technological capabilities to achieve the project goals and improve the logistics competitiveness of Busan Port.”

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