Can Busan New Port compete with Korea's Northeast Asian neighbors The Busan New Port Opening Ceremony was held last month, but only time will tell whether it lives up to the high expectations of the government. The new port was created to secure a vital logistics stronghold with a view to contributing to the common prosperity of Northeast Asia as a gateway port of the Eurasia continent which corresponds effectively to the logistics environment transformation of Northeast Asia.

The government has meanwhile been publicizing that the Free Economic Zone of 31.7 million pyeong (approx. 104.61 million m2) to be formed in the hinterland of this new port, will be forged as a hub of Northeast Asia business and as a stronghold of maritime logistics. However, local residents and experts in the logistics field are casting worried glances at the fact that this dream to realize a logistics hub country in Northeast Asia is looking rather shaky, as there are not at the moment any ships calling at Busan New Port. Nonetheless, Busan New Port has many strong points - such as geographic advantages, a convenient hinterland transport network construction environment, early setup incentives and so forth. The Ministry of Maritime Affairs and Fisheries is expecting that with the operation of the new port development, production induction benefits of approx. 15.4 trillion won (about US$15 billion) and new employment creation of 167,977 jobs are forecast from 2005 through 2013. Moreover, the Ministry says that the Busan New Port will play a great part in community economy development as well as national competitiveness strengthening as foreign capital allurement of $15.5 billion; and jobs worth 1.52 million and value-added creation effect amounting to 134 trillion won (approx. US$ 130 billion) by 2020 are forecast. Yet, to achieve these goals, the Busan New Port needs a lot more preparatory work. Above all, the Busan New Port has to still finish the incomplete construction of facilities as soon as possible, so that the New Port can function as planned at first. And then, the Busan New Port must enhance new port brand and its awareness degree preferentially internationally with priority given to Northeast Asia. In this context, associated governmental ministries and institutions need to launch oversea port sales strengthening and incentive offering in earnest in the interests of early activation of the Busan New Port. In addition to such policies, the Busan New Port has to improve efficiencies of terminal operation with state-of-the-art IT technology, the latest cargo-working equipment's introduction, logistics operation system improvement and so forth as soon as possible plus active foreign logistics enterprise allurement activity in hinterland lots by means of for instance Target marketing Provided Busan New Port launches proactive sales on the basis of advanced software competitiveness such as swift and precise freight handling and port operation know-how, it has a chance of success s in comparison with other competing ports like China's, as Korea's President Roh and Minister of Maritime Affairs and Fisheries Oh Keo-don pointed out at the Opening Ceremony through their speeches. Needless to say, in this regard, national strategic supports are absolutely vital.