The port of Busan is building a 22 million-square-foot distribution park to meet the demand for manufacturing, packaging, and assembly at the South Korean hub.
Located within Busan New Port and due to be fully completed by 2020, the facility, along with further investments in rail access, will help the port become of the world’s top five container hubs, said the Busan Port Authority.
“This distripark will also help Busan’s status as a hub port, as it offers much logistical activity beyond the simple handling of cargo,” said a spokesman. “The distripark is part of the Busan Jinhae Free Trade Zone, meaning that a variety of tax-free incentives and low-rental fees can be offered to logistics companies operating here.”
The first phase, Northern Distripark, is already built and logistics tenants finalized early last year. The tenancy application process for the second phase ‘Ungdong complex’, which is aimed at manufacturing, was opened in 2011 and tenants will be selected through 2012.
Busan handled roughly 16.2 million 20-foot equivalent units in 2011, up 14 percent year-over-year. With throughput forecasted at 17.5 million TEUs this year, the port is building more berths to meet further growth.
Last year four new berths were built, taking the total to 42, and another 23 berths will be constructed by 2018.
Trade with Asia is increasing as a share of total throughput, rising to 32 last year from 31 percent in 2010. Asian trade made up only 14 percent of total trade in 2009. The BPA spokesman expects a free trade agreement, signed with the U.S. last year and a potential pact with China to boost trade in the years ahead.
“The U.S. and potentially China FTAs will undoubtedly have affects upon the port and the amount of cargo handled from that region, although it is impossible to estimate to what extent at this point,” he said.
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