Pusan port income slips by 400 billion won

Port of Pusan is being expects that its income will decrease by about 400 billion won as many large foreign shipping companies stopped using the port this year.
KITA (Korea International Trade Association) announced on July 27 that a second world liner, MSC, changed its transshipment base, departing from China for Los Angeles to Ninggo port instead of Pusan port.
Also, China Shipping has suspended its Pusan Port U.S. - Pusan - Cheonjin - Qingdao - Pusan - Mediterranean service and Shanghai - Ningbo - Pusan - U.S. service from the middle of May.
It is expected that Pusan Port will handle more small transshipment cargoes than the original plan at this year because of business lost from these two shipping companies. One transshipment cargo makes 200 dollars port income.
Pusan Port transshipment cargoes have increased by 30% per year on average since 1998. Transshipment cargoes represent 41% of all container handling, or 9.40 million TEU last year.
It was pointed out that foreign shipping companies have stopped using Pusan Port for transshipment cargoes because of its lack of port facilities.
Among the Pusan Port container terminals, except for Shinsundae wharf, CYs (Container Yard) in other wharves are relatively small.
In fact, the CY area in 3 terminals, Jasungdae (60.7%), Gamman (46.0%) and New Gamman terminals are below standard, except for Shinsundae wharf which maintains 65%.
Pusan Port has relatively low stevedoring productivity because Chinese ports such as Cheonjin and Qingdao Port have more competitive container cranes.
Also, another reason for the lost business, China offers a direct service not by feeder container ships but mother vessels as Northern-Chinese ports receive numerous cargoes due to the large demand for ships.
In addition to this, the main Chinese, Japanese, and Taiwanese ports are actively attracting transshipment cargoes.
In the first half of this year, Shanghai Port handled 5.20 million TEU for an increase of 35.1% compared with last year, while Pusan Port handled 5.22 million TEU containers for a 15.5% increase compared with the same period.