JFEZ Opening of Busan New port offers region opportunities and challenges With the official opening of the Busan New Port on Jan. 19, 2006, the result of the groundwork prepared for the Busan Jinhae Free Economic Zone Authority (BJFEZ) is becoming visible. The New Port construction project which has been on the go since 1995 has come at a historic moment as Korea aims to become a logistics hub base in North East Asia. The Commissioner of the Busan Jinhae Free Economic Zone Authority Chang Soo-man explains that though it is a partial opening of three berths, value added of 3.5 trillion won (approx. $3.5 billion) will be created provided 30 berths will be built and the hinterland lot of 930,000 pyung (approx. 3.069 million m2) will be created by means of 9.1542 trillion won ($9.7 billion) investment by 2011. Commissioner Chang noted that the huge three berths for 10,000 containers can deal freights within a quay plus equipping with On-Dock service system and up to the hinterland lot, a free economic zone. He further adds that 172 cargo handling equipments such as 18 yard cranes and 60 yard tractors are awaiting the entry of port, maintaining the depth of water of 16~18m. The Busan New Port comes equipped with a facility ability to be able to deal over 450,000 TEU in 2006, the first year of the New Port opening, containers over 3 million TEU after three years and over 10 million TEU annually by 2011, according to Chang. Moreover, as in its hinterland lot, logistics complex of 370,000 pyung (approx. 1.22 million m2) and a lot for logistics support facility of 560,000 pyung (1.848 million m2) are forged step by step from the end of 2005, this port complex is expected to be born as a port which can create freight and value added by attracting global logistics enterprises. At the moment, three countries in Northeast Asia such as Korea, China and Japan, which possess roughly 20% of world economic scale, account for 30% of world freight. Accordingly, the government also is preparing a common development model of international logistics to facilitate activation of such regional exchange and for three countries' mutual benefits, as the increase of Asia circle's relative importance is forecast to be conspicuous by 2010 in the trade outlook by the world's top-three economic blocs-the EU, Northeast Asia and NAFTA. Commissioner Chang expects that the collaboration system between the three countries will play a great role in not only for logistics expenses reduction of three countries enterprise, but also for Korea's employment as well as value added creation. In the long run, such a cooperation system could also lay a cornerstone for the launch of a Northeast Asia economic community which can correspond to external economic blocs effectively, making Northeast Asia FTA conclusion earlier. Chang furthermore expects that the Busan New Port will grow as a growth stronghold of Busan/Kyungnam and as a hub of North East Asia providing its hinterland region comes to equip with cuttingedge industry facility, R&D facility, tourism leisure complex and education medical institutions etc. As a new growth stronghold in Busan/Gyeongnam, the goal of the Busan New Port is to become the core growth engine of regional economic development as well as a spearhead of international economy. Chang particularly underscores that the Authority will develop the Busan New Port as a logistics stronghold of China/Japan as a hub city of marine logistics as well as international business in North East Asia. For that end, BJFEZ will concentrate administration capacity to accomplish such plans, propel development projects in the interests of attracting foreign capital, as well as boosting competitiveness and offering tailor-made investment attraction activities plus strengthening investment inducement capacity and support enterprises, early investments and occlusion. MOU conclusion However, relevant institutions including BJFEZ must take heed of the fact that as there are not at the moment any shipping calling in at Busan New Port regularly, the New Port has its work cut out for it, such as enhancing New Port brand awareness degree and attraction of substantial foreign global logistics enterprises.