Port alliance may be needed

"Now isn't the time when a single port can survive through its own work and efficiency. It is the time for international cooperation to be required amongst international ports," urged Minister of Pusan Regional Maritime Affairs and Fisheries Office, Chung, Yee-kee.

Mr. Chung asserted this in a keynote address at an international symposium held in BEXCO (Busan Exhibition Convention Center) on November 2, as part of Marine Week 2001.

Mr. Chung said, "Amid expanding governance in shipping markets and the changing roles of large shipping companies through strategic alliances, now is the time for international ports to think of forming alliances." He suggested that this could be realized at first by terminals forming strategic alliances to secure space at other ports and share marketing information. Especially, private terminal operating companies need to be introduced to a new term, 'co-opetition', to produce mutual profits rather than operating exclusively, he stressed.

International logistics has to be at the forefront of the integration of each country's system in order to coordinate them on a by-country basis. Though this problem could be overcome in the boom of the digital economy, it will be difficult for individual logistics operators to overcome obstacles such as different management systems for the physical movement of goods. These logistic problems could be solved by systems integration through a global SCM (Supply Chain Management) system.

Mr. Chung suggested that a world standard be adopted for transit cargoes, and implemented until the end of 2003.

The new standard should focus on transit cargoes to begin and later be expanded as a total port information system able to network with other ports, encompassing other types of cargoes as well, said Mr. Chung.

In addition, Mr. Chung also explained development plans for the Port of Pusan. As the Port of Shanghai was developed by the Chinese government as a strategic port for Northeast Asia, Mr. Chung stressed that the Port of Pusan could be viewed as a strategic point due to its ability to connect the TSR (Trans Siberian Railways) and TCR (Trans China Railways) with sea-transportation, a center for inter-modal logistics.

The Pusan New Port Plan will be able to handle 8.1 million TEU of cargoes annually upon completion. It will have 30 container berths and will also have received 8 trillion won of investment from private and government capital by 2011. The new port facilities will be opened step by step from 2005 with 3-5 berths to handle rapidly growing cargoes in Northeast Asia.