Such increase can be attributed to competitive programs of Busan Port by cooperating with shipping logistics shipping companies, Busan Port terminal operators, and the government. It also enabled Busan Port to take active countermeasures against Hanjin Shipping bankruptcy.
Increased liner services of Hyundai Merchant Marine Co. (HMM) and major foreign shipping companies contributed to Busan Port’s service increase. In addition, expansion of Intra-Asia shipping companies’s services to the Asian region including Vietnam also resulted in the service growth of Busan Port as well as a 50 percent increase of global shipper’s U.S. East Coast service caused by the Panama Canal opened in June, 2016.
Over 100 thousand ton-class vessels grew 8 percent year on year. In particular, ultra-large container vessel over 180 thousand ton also increased 28 percent assuring the status of Busan Port as a global mega port.
The service increase by nation indicates that domestic shipping companies increased 17 percent compared to 11 percent increase of foreign shipping companies. However, overall ratio shows that foreign shipping companies accounted for 58 percent. By nation, Southeast Asia is the highest service region with 26 percent, followed by North America, Japan, China, South America, Europe, ME, Oceania, Russia, and Africa in order.
BPA President WOO Ye-jong said “Some expressed concern over decrease in call at Busan Port due to Hanjin bankruptcy. However, our geographical advantages and outstanding terminal productivity have played significant roles in increasing port of calls. In this regard, we anticipate to achieve our goal to handle 20 million TEUs this year. Furthermore, we provide various maritime transport networks to consignors that utilize Busan Port.”
However, whether the increase of container liners will lead to the growth of cargo volume at Busan Port is not clear yet. Because it may be affected by reshuffle of Shipping Alliance in April and its new route plans.
BPA plans to bolster the Busan-oriented shipping logistics network and carry out the road map to attract containers from rising markets including Vietnam, Indonesia, and Philippines.
