In Northeast Asia, to pursue the improvement of its function, and to build a combined port with a information base space, which provides total distribution service.
In order to accomplish the vision, as of May, 2013, under the third master plan of trading ports, a goal was set to handle 20.7 Mil TEU and to develop shipment of 26 new ports including private sector investment by 2020 with Busan Port Authority and it has been carried in stages.
Recently, the increasing cargo flow of Busan port has slowed and this representative national harbor faces a crisis because there is a raising possibility that the volume of its imports and exports might decrease in several years.
One the other hands, because Busan Port was separated into New Port and North Port, the cargo flow of North Port has been gradually transferred to New Port since 2011. The output of New Port to handle the cargo was 55 percent in 2012, while North Port handled only 45percent. As a result, New Port has overtaken North Port on this matter and been predicted to increase more than 60 percent of there cargo volume in 2013.
Moreover, the berth occupancy rate also has been transferred to New Port from North Port. It is urgent to come up with an effective operation plan for dealing with balanced development between ports focusing on the development of New Port, while North Port should promote the stability of operation through working with New Port, cooperation with port authority and competition in good faith.
Consequently, there is an urgent need to have an operation plan for balanced development between Busan ports. If the plan is not set up right away, Busan port would degenerate since it hasn't secured competitiveness in the international circumstances and other Northeast Asian harbors.
In this thesis, three solutions are considered for balanced development of both ports through operation efficiency gain. First, in order to invigorate the continuous-move of New Port and North Port, transportation system of both ports needs to be expanded to marine from overland concentrated transportation. To make it available, port authority should support them with incentive and induce their shipping companies concurrently touch at port to participate voluntarily until they settle down stably.
Second, operation efficiency should be pursued through volume prediction, reasonable distribution of North Port and New Port and prevention of volume concentration phenomenon to certain terminal. Also steps need to be taken through specialized marketing and operation methods that best suit for terminals.
Third, it is necessary to run a unified operation company from mutual developing cooperation of terminals to maintain the optimal stevedorage. It is difficult to adjust them by free economy since there is oversupply, thus, harbor authority's close supervision and control the rate is required. Through that, undervalued rate of Busan Port compared to neighboring competitors will be recovered to normal and stop draining national wealth. All those efforts will be a driving force to Busan Port's balanced development.