Page 27 - Sphere No.7 (Oct 2002)

S PHERE
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ernment’s plans to spend a combined US$1.5 billion on port
infrastructure this year, including the development of an
advanced automated exchange (logistics) system for Pusan, its
“Dual Port” policy highly favours transhipment.The long-term
strategy aims to develop Kwangyang into a world-ranked port
whilst upgrading existing facilities at Pusan. It also offers incen-
tives: Kwangyang is a Customs Free (no inspections) and Tariff
Free Zone, whilst Pusan shares the latter status.
Although 150km separates the two ports, the aim is to have
them complement each other. Kwangyang is expected to ease
pressure on Pusan – which presently handles 90% of South
Korea’s import-export cargo – whilst becoming a major tran-
shipment hub for north-eastern China. Pusan, in turn, is expect-
ed to continue to attract transhipment cargo from far eastern
Russia and Japan. Transhipment cargo from Japan to South
Korea jumped 36% last year.
“Japan’s share of transhipment cargo has decreased, but South
Korea’s is increasing mainly because of the difference in tariffs,”
explains HKT Pusan Terminal Manager KimYong-hak. “Tariffs
in South Korea are about one third of what they are in Japan. In
fact, our tariffs are even half those in Shanghai. Also, Pusan is
located on all the main trunk lines from Asia to the US, Europe
and Australia, so there’s no deviation for mother vessels to dock
here.”
HKT Chief Executive Officer ChoiWon-jong explains fur-
ther.“European services are starting to turn around here instead
of in Japan because it’s cheaper, more efficient and they can save
transit time. Especially nowadays, transhipment cargo from
northern China and western Japan is moving into Pusan because
geographically it’s better located.”
As far as the figures are concerned, the government’s policy
seems to be working. Combined transhipments surged 26.9% in
totalling 2.16km with a com-
bined 3 million TEUs annual
capacity.
January 2002
KIT places a security deposit
on first rights to Kwangyang
Phase 3 development.
April 2002
KIT leases and operates
three of the four deep water
berths totalling 1.15km.
December 2003
KIT scheduled to begin part
operations at Kwangyang
Phase 2-2.
March 2004
Civil works scheduled to be
completed at Kwangyang
Phase 2-2 at an estimated
cost of US$280 million to the
Korean Government.
KIT scheduled to begin full
operations with seven berths
totalling 1.95km with a com-
bined 2.5 million TEUs annual
capacity.
2008
Kwangyang Phase 3 with a
1.4km long quay is scheduled
for completion at an estimat-
ed cost in excess of US$500
million.
Hutchison Gamman
Container Terminal
(HGCT), (Pusan)
Hutchison Busan
Container Terminal
(HBCT), (Pusan)
Hutchison Kwangyang
Container Terminal (HKCT)
(Kwangyang)
Hutchison
Korea
Terminals
(HKT)
Hutchison
Port
Holdings
(HPH)