Busan counts on regional deals to lure cargo

   The Port of Busan on Monday outlined its regional expansion strategy to overcome a downturn in volumes.

   Korea's biggest port, the fifth-biggest in the world, has seen container throughput growth slide to less than 3 percent this year, after 10 percent growth in 2007.

   With more of the same expected in the first half of 2009, the port is banking on strategies to lure cargo from nearby ports in Russia, China and Japan. The strategy is especially important given that Busan is opening 11 berths at its Newport complex in 2009.

   Unless new cargo is created, Busan Port will face challenge and hardship, the Busan Port Authority said in a statement.

   BPA has invested directly in the Russian port of Nakhodka, where a fishing-oriented port will be turned into a three-berth container terminal and three-berth general cargo terminal, as well as an inland container deport in the northeastern Chinese city of Suifenhe.

   The port has also signed agreements with the western Japanese port of Nigata and the Chinese ports of Dalian and Dafeng to induce services between the ports. 

Source: American Shipper