In a move that is to be carried out via a combination of public-private partnerships, South Korea is to invest more than US$13 billion in expanding its ports, according to IHS Fairplay.
South Korea’s Ministry of Oceans and Fisheries (MOF) aims to expand 140 cargo berths in a bid to prepare for the wave mega-ships that are still to be delivered.
South Korea also aims to make Busan the second-largest transhipment hub in the world after Singapore, as well as make Gwangyang the biggest industrial port in South Korea.
37 container berths will be constructed under phase three of Busan New Port’s expansion, with phase two set to be completed by 2020.
The Park Seung-gi, Director of Ports at the MOF, said: “The modifications to the plan are based on cargo volumes and trends in shipping. We plan to continue to respond flexibly to reflect changing circumstances in a timely manner.”
PTI previously reported that the Busan Port Authority was looking to invest in overseas port and logistics projects as part of its drive to help define the future of Busan New Port.
This followed an update that world-largest port and terminal operator PSA International was to strengthen Busan’s presence by purchasing a stake in the port.
Busan New Port is currently the third largest transhipment hub in the world, however, with upcoming investments and expansion plans, it is likely that the port will reach higher levels of productivity, should the global market begin to improve.
South Korea was recently hit with the downfall of one of its largest shipping companies – Hanjin Shipping – yet the shipping line could have fallen into a safety net after it was reported that Maersk Line could be looking to take over the shipping line.