Great Logistics Development in the World

Transcription

1 Busan Port is ready to be your sincere partner Great Logistics Development in the World Introducing the Case of the Port of Busan, South Korea 2013 Oct. 3. Bogota Seong-koo, HWANG Vice president of BusanPort Authority

2 Contents 1 Current Global Shipping Market Conditions Competitive Port Market in NE Asia BusanPort s Strategies towards Sustainable Growth Advanced Port Operation in Busan

3 1. Current Global Shipping Market Conditions The outlook for the global shipping industry will remain negative for 2013 & The overcapacity increases while demand for shipping transport is shrunk. As new large container ships enter the market, the imbalance will probably continue with fleet size growing by 7.5% in 2013 compared to demand growth of 4.5% Shanghai Containerized Freight Index P3 Effect 1

4 1. Current Global Shipping Market Conditions Impact on the Port Market Why liners want to ally? Liners vessel sharing alliance will be enhanced Improving the service P3 Alliance. How will ports be affected? for customers Port s main criteria to be selected for the P3 network More stable, frequent & flexible services Ability to handle ULCVs efficiently Declining the over-capacity Quays with enough length and depth of fleet Improving the industry Cranes capable of spanning around 22 rows across deck efficiency CY capable of evacuating large container volumes to the hinterland, which requires well connected intermodal transportation Improving vessel turnaround time for better coordinated carriers schedule 2

5 2. Competitive Port Market in NE Asia Northeast Asia s Share of Global Export Korea + China + Japan = 16.9% in % in 2012 Marked Improvement in the Regional Economic Weight World Trading Volume & Value Forecast (unit: USD 1Tril., 1 mil. TEU) Export Value Container Volume NE Asia Weight (%) (Source: The Economist, 2011 Apr. Drewry, 2010 Oct.) 3

6 2. Competitive Port Market in NE Asia Progressive Policy of Chinese Ports Neighboring countries confronted new challenges and future is not bright Port Competitive Appraisal based on geographical advantages, cost advantages, Container Volumes, and National port policy Shanghai will keep the crown Neighboring ports would be better Global Top 5 Biggest Port by Container Cargo Throughput in 2012 to transform their strategies from current competition& quantity-oriented policy to cooperation & value-oriented policy 4

7 Korea, located at the Center of NE Asia, is conveniently connected to many cities in the region China: Growing not only as a major base for manufacturing but also the world s largest market Japan: Still steadily increasing her economic weight Incheon International Airport 157 cities in 49 countries Direct flights to 33 cities in China and 27 in Japan Handling the world s second largest international air cargo volume Busan Port lies on the world s main sea routes linked to 45 ports in China, 60 in Japan, and 5 in Russia Handling the world s fifth largest container cargo volume 6

8 Stable growth of Korea economy is the backbone of Busan Port s development 8,00% 7,00% 6,00% 5,00% 4,00% 3,00% 2,00% 1,00% 0,00% Real GDP Grwoth Rate Consumer Price Inflation Commercial Bank Primary Rate (Source: Bank of Korea. 2012) Real GDP Growth Rate: Quite sustainable between 2% and 4%. Ideal! Consumer Price Inflation: Measuring changes in the price level of consumer goods & services purchased by household. Under the control! Commercial Bank Primary Rate: affecting liquidity in the financial market. When prime lending rates are low, businesses expand and so does the economy. The economy is expected to expand up to 2016! 7

9 Trend of F.D.I in Korea F.D.I Sector (unit: USD mil.) Sum 11,565 11,247 10,515 11,711 11,484 13,071 13,673 16,286 Annual Growth Rate -9.6% -2.8% -6.9% 10.2% -1.9% 12.1% 4.4% 16.0% Agriculture & Mining Manufacturing 3,078 4,252 2,692 3,007 3,724 6,658 5,657 6,097 Service 8,301 6,627 7,613 8,387 7,594 6,302 7,269 9,601 Construction & Utilities (Source: Ministry of Knowledge & Economics of Korea) 8

10 The Value of Global Trading of Korea & Major Trading Partners (unit: USD 100mil.) Total Value of Trading 5,456 6,348 7,283 8,572 6,866 8,915 10,796 10,674 Global Rank First Major Partner China China China China China China China China Second Major partner Japan Japan USA Japan Japan Japan Japan Japan (Source: Customs Office of Korea) 9

11 Strength 1: Location of Busan Strength 2: Capacity Growth of Port reflecting the Demand 1) Busan New Port Construction: total 45 berths by ) New Port Distripark Development 60 cities with population over 1 mil. Within 3.5 hours flight 26 int l air routes in operation & new int l airport to be constructed 3) North Port Redevelopment 10

12 Strength 3: Well Connected Feeder Network Strength 4: Excellent Marine Transportation Service Network Region & Country Service Share(%) Japan Southeast Asia China N. America S. America Europe Russia Middle East Australia Others Total

13 Busan Port s Throughput by Regions (unit: TEU) Region Growth Rate(%) Total L/C T/S Total L/C T/S Total L/C T/S Far East 5,161,227 2,299,770 2,861,457 5,444,209 2,305,612 3,138, N.America 2,673,835 1,330,410 1,343,425 2,821,495 1,371,835 1,449, Japan 2,418,060 1,314,407 1,103,653 2,594,201 1,359,926 1,234, S.E.Asia 1,424, , ,163 1,704,423 1,045, , Europe 1,168, , ,186 1,222, , , Middle East 801, , , , , , S.America 707, , , , , , Central America 576, , , , , , Ocenia 465, , , , , , W.E.Asia 419, , , , , , Africa 240, ,835 72, , ,092 95, Others 3, ,769 2, ,

14 World Highest Growth Rate of Port s Cargo Volume Volume Trend of Busan Port Busan recorded the 2 nd highest growth rate among global top 5 ports 13

15 Distripark Development in Busan New Port (unit: 1,000 m2 ) Sum Total 6,704 1,704 2,719 6,704 North 1,704 1, West (Ung-dong) 3,579-1,015 2,564 South 1, ,421 14

16 Operarating State of Distripark Development in Busan New Port Current Operating Status of the Busan New Port s Distripark North West (Ung-dong) South (As of the end of 2012) Sum No. of Companies in operation (Supplied Land Size) 28 (1.2 mil.m2) 28 (1.8 mil.m2) TBD 56 Secured F.D.I USD 43 mil. USD 15 mil. TBD USD 58 mil. Revenue USD 209 mil. TBD TBD USD 209 mil. The Cargo Volume induced by the Occupant Firms in the Distripark (unit: TEU) Cargo Volume 15

17 The whole Distripark area is a designated Free Trade Zone Business Sectors allowed to enter - Cargo loading & discharging - Transportation - Storage - Exhibition - Consolidate Logistics related Businesses (Package, Processing & Assembly, etc.) - International Logistics - Manufacturing Common Characteristics of FTZ in Korea - Above average business infrastructure - More flexible business regulations - An offshore location - Focus on export - Attractive incentive packages 16

18 4. Advanced Port Operation Ubiquitous Port Ubiquitous Port Single Window Ship Yard MOMAF,SP-IDC Financial Ships Store (e-ss) Port Notice (e-pn) Harbor Mgmt. (e-hm) Customs Logistics EDI VAN external N/W (e-xn) Government N/W (e-gn) Quarantine Intl Network Logistics Commerce (e-lc) Justice Dpt Shipper MOCI Shipping Line Korail CY, Inland ICD Air Line TML Operator 17

19 4. Advanced Port Operation Ubiquitous Port Structured Model of BPA Net Network MLTM BusanCity KHOA CIQ KMA Stake- holders Informa ation Integrated service Port-MIS Gateway system Port admin service Strategic info system Top service Ship schedule sharing Transshipmentsupport Integratedreal-time monitoring Cargo transport Coastal/railwaytransport Value delivery Logistics s Info Users Government Logistic entities Logistics entities VANs Information e-marketplace Environmentalmonitoring Hinterlandlogistics park Tourist information Ubiquitous info system Service Other users Wireless portal Integrated DB Security 19

20 4. Advanced Port Operation Ubiquitous Port Expected Benefit of BPA NET UPS: Unified Port Service ULS: Ultra Logistics Service UVS: Utmost Value Service UIS: Ubiquitous Infrastructure Service One-stop port community service Single channel for tug/pilotage service Fast and efficient decision-making Ship schedule sharing Optimum transshipment planning & delivery Real-time cargo monitoring Coastal/railway logistics support Promotion of port-related industries Low-carbon eco-friendly port Tourism support for economic benefits Ubiquitous telecom infrastructure Port security and reliability Real-time visibility of port facilities 20

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