Handling rates of container cargoes decreases in Busan

The percentage of container cargoes handled in Busan is decreasing year by year.
According to the report titled "The analysis on the physical distribution cost of exporting by domestic trade port" from KITA, the rate of container cargoes handled in the Port of Busan was 80.8% of last years. This value is much lower in comparison with the 88.2% in 1998.
The percentage of container cargoes through the Port of Busan is decreasing because exporters have been using nearby ports like Kwangyang, Ulsan, and Inchon instead of Busan as extending regular container line services of an outerport, which touch at the regional port.
Currently, with the exception of Busan, the number of opening service regular lines stands at 112 compared with 85 services last year, the services of regular lines have recorded 114 a week compared with 89 last year and the calling ship owners have recorded 51 compared with 33 last year.
Particularly export shippers prefer regional ports to Busan because they can reduce inland transit costs and physical distribution costs at ports.
For example, If an export shipper in the national capital uses Inchon instead of Busan, the shipper can reduce distribution costs by about 270000~300000 won per container (18-28%) in Buchon, about 240000~270000 won (16-25%) in Ansan and about 230000~260000 won (15-24%) in Seoul. And if an export shipper in Honam or Chungbu uses Kwangyang instead of Busan, the shipper can reduce distribution costs by about 250000~320000 won (10-28%) in Kwangju, and about 60000~140000 won (5-9%) in Dajeon. Also, if shippers in Ulsan use Ulsan port instead of Busan, they can reduce costs by 90000~110000 won (9-16%). If the shipper uses Masan instead of Busan, he can reduce costs by about 70000~150000 won(5-17%).
After the survey, KITA pointed out that trade companies should not adhere using 'Port of Busan' on bills of lading but appoint 'Korean port' as the export port in order to reduce export physical distribution costs by increasing their choices.
Also pointed out by KITA was that the calling ship companies should diversify their service for attracting shippers more, specialize their service by port and not take raised marine freight in ports except Busan but take equally with Busan.
Particularly, KITA asserted that the container ship services through Inchon that connect South Korea with China should open quickly and should expand E.C. services through Kwangyang to reduce physical distribution costs and disperse cargo handling. Further, port management companies should make both CFS and storehouses for dealing with small quantity cargoes such as LCL, and thus attract both combined transport companies and customs clearance companies in a positive light, the organizations for testing as well as the customs and the like early peace settlement of CIQ, also asserted that should expand exclusive wharf of container and the rear facilities, change loading equipment of container to up-to-date one as like Gentry crane, amplify the facilities of infra by constructing both roads and a railway network and the like inland transport system perfectly as a means of making service better for attracting shippers.
In addition the Government stressed that authorities should execute incentive programs for consistent port usage.