'We have to make ports distinctive'

Interview with administrator of the local Maritime Affairs and Fisheries administration in Busan, Mr. Yee-gee Chung

By Staff Reporter H.S Paek

Late November, delegates of Port of Busan consisting of 30 people related with port works, such as shipping companies, stevedoring companies, the Customs Service and stevedoring union laborers, visited China to improve relations with the port. When coming back from China, they said that it is energetically developing its container terminals.
They said that China is planning to develop 52 berths to handle containers on Yangshan island, 30 km away from mainland China. To prepare for geometrically increasing cargoes, China will open terminals including 5 berths, sometime in 2005, earlier than scheduled. The country also is building a 32km long bridge to connect mainland China with Yangshan island.
In the middle of the fierce competition to be a hub amongst Northeast Asian ports, the Korea Shipping Gazette interviewed the administrator of the local Maritime Affairs and Fisheries administration in Busan, Mr. Yee-gee Chung, to listen to the strategies Busan was taking. The port there is expected to hit 9 million TEUs in 2002, maintaining its position as the 3rd largest container port in the world.

Korea Shipping Gazette: After delegates of Busan visiting from China, as you may know, I heard China was developing container terminals faster than we assumed. When you heard the news, how did you feel about the future of Busan?

Mr. Chung: When I heard of the Chinese port development plans, at first, I confessed that I was doubtful about the possibility of its coming to pass. As, however, we’ve seen, the possibility is being realized. China launched container terminal constructions in Shanghai in 2002.
I consider this could be a chance, although perilous, in spite of some rather much more threatening elements. I also consider it important that the people who visited China vividly felt what was going on there.
Given these experiences, Korea must pour all its energies to make Korean ports distinctive and build them faster than other neighboring countries. To distinguish Korean ports, we should modernize existing northern harbors in the Port of Busan and dredge berth drafts more deeply, also improving computer systems at the ports to paperlessly handle the entire process .

Korea Shipping Gazette: Now the problem is getting the money to build terminals. How are things going on building new terminals in the Port of Busan?

Mr. Chung: As a matter of fact, securing financial aid is quite a difficult thing for us. Sometimes things don’t go just as planned, and we have to change plans. Despite this, we are sure we’ll keep the schedule quite well to build terminals, completing three berths by 2005.

KSG: What are your countermeasures to handle overflowing cargoes in the Port of Busan until the completion of Busan New Port?

Mr. Chung: Well, the Port of Busan is preparing to open three berths in 2006. At that time, the Port of Busan will be capable of handling 10 or 11 million TEUs of cargoes.
To compensate for insufficient container yards, we are planning to build up the former Dongmyoung Lumber location into a new container yard with as much as 40,000 pyoung (12000 square meters). It will be completed by 2003. Then, the area will be put up for Customs Free Zone (CFZ) designation in 2004. In 2005, the Navy Pier, scheduled to be moved elsewhere, will be used for container cargoes, as well.
In order to handle more cargoes in the restricted areas, we are also thinking of improving efficiency in stevedoring work. We will introduce high-productivity cranes in the six container terminals in the Port of Busan.
To solve traffic jams in the Harbor-avenue, we are building roads to shuttle transshipment cargoes between the conventional piers and container dedicated terminals, which are scheduled to finish by 2004.
Also for the conventional piers to handle over 2.5 million TEUs of containers, we are driving to set up computer systems smooth logistic flows.

KSG: Under the severe competition among ports to become major hubs, what do you think is the ideal balance between local and transit cargoes for port handling?

Mr. Chung: I believe that hub ports should handle more transit cargoes than local cargoes. In 2002, transit cargoes through Busan rose to 36.7%, 2.94 million TEUs, of total cargoes. The transit cargoes came mostly from China, 60% of the total transit cargoes, some from Japan, 30% and others from Russia and Southeast Asia. The well-known hub port in Singapore handled transit cargoes of about 75-80% and Kaoshung did 50%.
By 2010, the Port of Busan is planning to increase by almost 50% to handle transit cargoes of 14 million TEUs. In that time, we would cover 6 million TEUs of cargoes in the north harbors in Busan and 8 million TEUs in Busan New Port.

KSG: I think this will be my last question. After the 9.11 terror attacks, the United States introduced the Container Security Initiative (CSI) for foreign ports. Korea, also, signed on the CSI with the US in September 2002. If the CSI program came into practice, how would you operate the program?

Mr. Chung: Well, the CSI program aims to protect ports against terror, and we would execute the program within the boundary of not scattering logistic flows. For smooth logistic flows, the Port of Busan gave birth to the ‘Logistics Improvement Committee’ consisting of the City of Busan, MOMAF, Customs and shipping industry workers to fix and smooth the distorted logistic flow. I hope every thing will go fine.

KSG: It’s been a pleasure speaking with you this afternoon and thank you for your time.