Pusan exhibits low port productivity due to lack of facilities

The Port of Pusan, which had handled 7.54 million TEU last year and occupied third place among worldwide container ports, showed drastically low port productivity because of insufficient port facilities compared with other competitive ports.

Pusan Regional Maritime Affairs and Fisheries revealed Feb. 11th that transshipment costs in Pusan are half as cheap as Singapore and Kaohsiung, Taiwan, and one-third lower than Kobe, Japan. However, port productivity reached levels 86.2 percent of Kobe, 79.3 percent of Kaohsiung, and 76.9 percent of Hong Kong and Singapore.

Despite cheap logistic costs, a lack of berths accounted for the low productivity in Pusan. For example, Pusan has 16 berths, Hong Kong has 23, Singapore 37, Kaohsiung 27, and Kobe 24. In addition, Pusan showed poor logistic service systems and logistic complexes behind it.

An official at Pusan Regional Maritime Affairs and Fisheries said that they had better hurry in acquiring port facilities, such as the early opening of the Pusan New Port. He went on to say that it is true that they need port facilities, especially in light of recently recording 77 percent container port facilities provision ratio in the Port of Pusan.