South Korea’s Busan Port Set To Become World’s Third Largest Port By 2045

The South Korean Ministry of Oceans and Fisheries (MOF) has revealed a comprehensive $10 billion plan to transform Busan Port into the world’s third-largest port by 2045.

The plan was announced during a Ministerial Meeting on Industrial Competitiveness Enhancement on December 11, 2024.

The South Korean government plans to build a mega-port alongside the existing Busan Port, which will involve the development of the Jinhae New Port. The new port will significantly increase the port’s handling capacity, allowing Busan to compete with the largest ports globally.

The plan includes a whopping investment of 14 trillion won (approximately $9.75 billion). The investment will be used to build new infrastructure, including the Jinhae New Port, which will help increase Busan Port’s capacity and make it one of the top three ports globally by 2045.

The Jinhae New Port will feature 66 new berths, which is more than double the current number of berths at Busan Port. The new port will accommodate the world’s largest vessels, with the capacity to handle ships that can carry up to 30,000 TEU (twenty-foot equivalent units).

The port will also see an increase in container storage space, which will be 1.5 times larger than the current capacity.

The first phase of the Jinhae New Port will operate under a single-operator system for nine of its berths. This change is expected to reduce inefficiencies that occur due to multiple terminal operators and is aimed at improving cargo handling and port operations.

Additionally, the first phase of the new port will handle 6 million TEU annually, with the capacity to manage larger vessels from the world’s largest shipping alliances.

As part of the plan, South Korea’s government aims to expand Busan Port’s overseas logistics network. By 2032, the country intends to establish 16 logistics centres in key global locations, including Southeast Asia, Europe, and the U.S. This expansion will support South Korea’s logistics business and promote Busan Port globally.

The South Korean government is also considering green initiatives for Busan Port. By 2032, 25% of the energy used by the port will come from renewable sources, with plans to achieve 100% renewable energy usage by 2050.

The government will also install infrastructure for eco-friendly ship fuels like methanol and ammonia, helping to reduce the port’s carbon footprint and contribute to South Korea’s carbon neutrality goals.

The government will offer up to 10 billion won ($7 million) in incentives for the integration of existing terminal operators into the new single-operator system. This will help create a more streamlined and efficient operation at Busan Port, ensuring better coordination and management of the port’s facilities.

The expansion will increase port capacity, improve operational efficiency, and accommodate the growing size of modern vessels.

Minister Kang Do-hyung discussed the importance of the plan, explaining that the restructuring of global supply chains, driven by factors such as protectionism, regional conflicts, and changing shipping alliances, poses both challenges and opportunities for South Korea’s ports. He stated, “We will transform Busan Port into a global logistics centre that supports the South Korean economy.”

References: South Korea’s MOF, YNA

Source: Maritime Shipping News