Port fee reductions to phase-out ships in Port of Busan

Busan Port is offering incentives for ships that will undergo phase-outs after unloading their cargoes. Such incentives as entrance and clearance fees are designed to support shipping companies suffering from the ongoing global recession and attract more transshipment cargoes to Busan Port.

Phase-out takes place when a ship unloads its cargoes due to ship repairs, termination of a ship lease, or rearrangement of ports to call at.

If phase-outs take place in Busan Port, subsidiary revenues from cargo handling, towing and piloting ships, and inspecting cargoes accrue. Busan Port, where 50 ships underwent phase-outs last year, expects that the new regime will contribute to attract more cargoes from shippers that are using low cost Chinese ports.

BPA will provide a 50% port fee reduction for ships whose transshipment cargo proportion is 20~30% and a 100% port fee reduction for ships whose transshipment cargo proportion is more than 31%.

The first beneficiary was Dammam of COSCO which handled 1,194 TEU on July 3 to rearrange its service line.

Mr. Park, marketing director of BPA, said that BPA will implement more incentives to attract more transshipment cargoes and create added value, hinting that the responses to the incentives from shippers so far are favorable.