Busan Port is ready to be your sincere
Busan Port, platform to expand your business
Contents 1 2 3 4
Busan in Korea
Busan Port in 2011
Current Developments at Busan Port
Busan Port, the optimal platform for your business
Portrait of KOREA U.S. Secretary of the State
Hillary Clinton stayed up late into the night to watch Kim Yuna’s Gold Medal Performance and said: “I think she greatly improved South Korea’s national image.”
The United Nations General Assembly appoints Ban Ki-moon to second term as UN Secretary-General : Mr. Ban’s second term will run from 1 Jan, 2012 to 31 Dec, 2016
Portrait of KOREA– Korean Wave-
Portrait of KOREA– economic powerWorld No. 1 in Shipbuilding World No. 1 in Memory Semi-con
World No. 2 Mobile Phones Producer World No. 1 TFT-LCD Producer
World No. 5 Automotive Producer World No. 6 Steel Producer
World Top 10 Builders World No. 6 in Nuclear Power Production
Portrait of KOREA
–Economy-
Korea’s Per Capita Income GDP 25,000.00
20,000.00
15,000.00
10,000.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Portrait of KOREA
–Economic relation-
Location of Busan in Korea 60 cities with population over 1 million within 3.5 hours flight 26 int’l air routes in operation & new int’l airport to be constructed Harbin Changchun
Vladivostok
Shenyang
Beijing Tangshan
Dalian
Tianjin Taiyuan
Tokyo Qingdao
Busan
Xi’an
Osaka Fukuoka
Suzhou Nanjing
Chengdu Wuhan
Nagoya
Shanghai
Hangzhou
Chongqing
Xiamen Shenzhen Guangzhou Hong Kong
Taipei
Northeast Asia accounts for 27% of Global GDP and 25% of World Population
Demographic of Busan, Korea
Busan in Korea
Busan in Korea South Korea’s second largest city, with a population of 3.6 Million The fifth busiest container port in the world Named ‘Top 4 Asian International Conference City’ Host to, among many others: 2011 International Association of Ports and Harbors Conference 2005 APEC Summit 2002 Asian Games Marine Week Home to the Busan Port Redevelopment Project
Contents 1 2 3 4
Busan in Korea
Current Status of Busan Port
Current Developments at Busan Port
Busan Port, the optimal platform for your business
Busan Port
25 ㎞
North Port New Port
Busan North Port
North Port 5 terminal Operators (20 berths)
Busan New Port
Opening : 2006 22 berths, under operation Complete construction by 2019 Handling capacity : 15M TEU Water depth : 15 ~ 17m
Volume Trend of Busan Port (Unit : ‘000TEU)
Total
18,000 16,000
Local
1.4%
10.2%
13,453
16,185
14,194
-10.9%
11,980
12,000
7,836
10,000
6,000
T/S 18.5%
14,000 13,261
8,000
14.0%
7,444
7,638
(11.6%)
5,811
(-0.1%)
5,808
6,569 (-7.5%)
5,372
8,832
(17.1%)
7,353
(16.8%)
6,276
4,000 2,000 0 '07
'08
'09
'10
'11
Local Volume at Busan Port (Unit : ‘000TEU)
791
800 750 691 679
700
675
659
724
700
713
733
682
675
676
600
2012. 1
669
566
618 2011. 1
550
'1 2. 1
11
9
7
5
3
11
9
7
5
549
3
'1 0. 1
753
701
2010. 1
500
760
760
702 681
'1 1. 1
650
662
676
759
17
T/S Volume at Busan Port
750
(Unit : ‘000TEU)
700
676
645
650
660
604 599
565 553 550 536
600 550 460
500
450 490
532
540
648
651 610
623
668
526 544 523 2011. 1
647 2012. 1
501 495 468
2010. 1
400
2. 1 '1
11
9
7
5
3
11
9
7
5
3
1. 1 '1
'1
0. 1
350
18
Domestic market share “ Korea’s total t/put in 2011 : 21.5million TEU(11.3% increase)” (Unit : ‘000TEU)
Ulsan 1.5%
(-3.6 % Increase)
Pyeongtaek 2.3% (16.9 % Increase)
Gwangyang 9.6%
others 2.3%
(-1.1 % Increase)
Inc heon 9.2% (4.4 % Increase)
Busan 75.1% (14 .0% Increase)
※ Busan Share 2010 (73%) -> 2011 (75.1%)
Busan Port t/put by nation 2011 (Unit : ‘000TEU)
NATION
2010
2011
Growth Rate
Total
L/C
T/S
Total
L/C
T/S
Total
L/C
T/S
CHANA
3,297,464
1,494,328
1,803,136
3,924,053
1,628,851
2,295,202
19.0%
9.0%
27.2%
JAPAN
2,258,986
1,178,392
1,080,594
2,414,218
1,313,679
1,100,539
6.8%
11.4%
1.8%
U.S
2,117,579
1,108,962
1,008,617
2,319,231
1,179,547
1,139,684
9.5%
6.3%
12.9%
RUSSIA
443,997
232,744
211,253
529,742
290,019
239,723
19.3%
24.6%
13.4%
CANADA
334,077
143,699
190,378
361,248
149,955
211,293
8.1%
4.3%
10.9%
AUSTRALIA
308,156
174,370
133,786
359,401
209,357
150,044
16.6%
20.0%
12.1%
U.A.E
302,068
230,591
71,477
314,434
250,560
63,874
4.0%
8.6%
-10.6%
MEXICO
258,573
127,940
130,633
310,670
148,585
162,085
20.1%
16.1%
24.0%
INDIA
242,595
184,389
58,206
297,077
192,324
104,753
22.4%
4.3%
79.9%
VIRTNAM
286,822
183,593
103,229
293,978
200,459
93,519
2.4%
9.1%
-9.4%
INDONESIA
249,505
145,919
103,586
270,482
155,186
115,296
8.4%
6.3%
11.3%
GERMANY
233,683
178,755
54,928
269,278
207,369
61,909
15.2%
16.0%
12.7%
SINGAPORE
246,058
180,993
65,065
258,420
192,617
65,803
5.0%
6.4%
1.1%
HONGKONG
257,830
176,193
81,637
255,349
171,682
83,667
-0.9%
-2.5%
2.4%
THAILAND
213,478
113,089
100,389
237,834
122,693
115,141
11.4%
8.4%
14.6%
CHILE
169,987
87,186
82,801
234,815
115,777
119,038
38.1%
32.7%
43.7%
TAYPEI
211,770
134,164
77,606
224,645
146,273
78,372
6.0%
9.0%
0.9%
BRAZIL
138,719
95,634
43,085
206,776
137,445
69,331
49.0%
43.7%
60.9%
20
Busan Port t/put with CHINA (Unit : ‘000TEU)
LOCAL
T/S
2,350,000 2,200,000 2,050,000 1,900,000 1,750,000 1,600,000 1,450,000 1,300,000 1,150,000 1,000,000
2005
2006
2007
2008
2009
2010
2011 21
Busan Port t/put with JAPAN (Unit : ‘000TEU)
LOCAL
T/S
1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000
2005
2006
2007
2008
2009
2010
2011 22
Busan Port t/put with U.S.A (Unit : ‘000TEU)
LOCAL
T/S
1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000
2005
2006
2007
2008
2009
2010
2011 23
Busan Port t/put with S.America (Unit : ‘000TEU)
MEXICO
350,000
CHILE
BRAZIL
300,000 250,000 200,000 150,000 100,000 50,000
2005
2006
2007
2008
2009
2010
2011 24
World’s top 10 ports in 2011 (Unit : ‘000TEU)
“ Busan Port recorded the highest growth rate” T/Put
31,500 30,000 29,938 25,000
18.7%
24,40422,570 14.0%
13.4%
11.3%
11.7%
20,000 15,000
Growth Rate
16,17514,686 14,400 8.9% 13,020 12,80011,900
9.3% 5.3%
10,000
6.0%
3.0%
5,000
-0.1%
ai Ro tt er da m
Du b
o gd a Qi n
u gz ho
Gu an
ng bo Ni
ng a Si
Bu sa
po re
i gh a Sh an
※ Rotterdam & Dubai Data are estimate
n
0.0%
Ho ng ko ng Sh en zh en
0
Port of LA : 7,900,000 TEU Port of Long Beach : 6,061,000 TEU 25
Strengths of Busan Port 4. Deep Water
1. Perfect Geographical Location
2. Sophisticated Feeder Network
3. Excellent Connectivity
Transshipment Hub Port
5. Weather Condition
6. T/S Cargo Base
26
1. Geographical Location Eastern Gateway to Russia
Largest Manufacturing Base
Logistics Hub
Huge market
(Within 3hr Flight) - 35% of World’s Container Vol. - 25% of World Population
Located on the main trunk route More than 500 ports in 100 countries
2nd Largest Economy
2. Feeder Network Network Sophisticated Feeder Network U.S 9D
2D
1.5D
2D
1.5D 1D
◈ Japan : 60 ports 25 D Europe
◈ China : 45 ports ◈ Russia : 5 ports
3. Excellent Connectivity (As of Aug, 2011)
Service 2010
2011
Increase
Share (%)
Japan
63
70
7
19.0
Southeast Asia
72
72
0
19.6
China
51
45.5
△5.5
12.4
N. America
37
46
9
12.5
S. America
29
43
14
11.7
Europe
26
37
11
10.0
Russia
12
13.5
1.5
3.7
Middle East
15
13
△2
3.5
Australia
18
27
9
7.3
Others
0
1
1
0.3
Total
323
368
45
100
Region
※ Study by BPA to regular carriers handling more than 1,000 TEU at Busan Port (As of Jul, 2011)
4. Deep Water Container vessels are growing in size, particularly more than 10,000 TEU vessels in shipping industry
300
(Unit : No. of more than 10,000 TEU vessels)
단위 : 척
250
191
200
226
231
2014
2015
2016
145
150 100
218
85
50 0
2011
2012
2013
※ Source 1. Drewry Shipping Consultants, 2011 2. CI Online 2011. 11
4. Deep water Water depth 15 ~ 16 m (17m by 2016) Little tidal difference (1.3m) 13,800 TEU Vessels from MSC
14,400 TEU Vessels from CMA
14,100 TEU Vessels from CSCL
13,500 TEU Vessels from UASC
5. Favorable weather conditions “Best Transshipment Port”
Even Better Weather Conditions Minimal Typhoon Impact and Sea Fog
Busan Port in 2011 For On Time Delivery for the carriers’ customers
Major carriers dropped T/S cargo at Busan Port during particularly foggy spring season in 2011. of T/S cargo during that season.
Busan Port saw rapid increase
6. T/S cargo base Cost reduction & efficiency improvement
T/S Base Europe
America
Contents 1 2 3 4
Busan in Korea
Current Status of Busan Port
Current Developments at Busan Port
Busan Port, the optimal platform for your business
Current Developments 1
2
3
Busan New Port Construction
Huge Space of Distripark at Busan New Port
Busan North Port Redevelopment
Busan New Port Construction Phase 2-5 Phase 2-6 2 Berths (TBD) 3 Berths (TBD)
0.7km 1.05km
HJNC 4 BERTHS
1.1km Phase 2-4
1.05km
PNC 6 BERTHS
3 Berths (TBD)
1.4km
2.0km
Phase 2-3(BNCT) 4 BERTHS(2012)
1.2km 1.15km HPNT 4BERTHS
700m Multi Purpose TML
PSA 3 BERTHS
Connecting Pier
Busan New Port Expansion “ The Korean government released the 3rd National Port Development plan to construct additional 15berths at Busan New Port.”
General Pier Ro-Ro TML
Container TML Feeder TML Grain TML
Multi TML Feeder TML Feeder TML
Distripark Development
3.57M ㎡, 2011~2020
1.2M ㎡, 2005~2010
1.42M ㎡, 2011~2015
Distripark Development
Northern Logistics Park
Development Period : 2005~2010 Size : 1,204,000㎡ Already selected tenant companies -Total of 30
Consortiums
(Domestic : 48, Overseas : 47)
Western Logistics Park
Development Period :2010~2020 Size : 3,579,000㎡ - Phase1-1 : 1.01M㎡ - Phase1-2 : 811K㎡ - Phase1-3 : 660K㎡ - Phase2 : 1.09M㎡ Already selected tenants at Phase 1-1 : 16 Consortiums
Southern Logistics Park
Development Period : 2012~2015
Specific Development Plan : TBD
Distripark Development Applicable Business Assembling
Tax incentives & benefits
Packaging
* USD
Lease Terms and Conditions - Lease Period : Max. 50 Years - Lease Fee : 4~15 cents/㎡/month (Logistics Companies)
Storage
Stevedoring
Direct Tax - 100 % Exemption for first 3 Years - 50 % Exemption for next 2 years Indirect Tax - 100% Exemption - Zero VAT
Northern Distripark
At present, 26 companies are under operation & 4 companies will enter operation by May, 2012
Tenants at Northern Distripark Phas e 1
Consortiums No. 2
Companies Domestic 2
Size(㎡)
overseas 4
51,879
Cargo creation (TEU)
Opening
90,546
Under operation (’06~’07)
2
7
11
12
366,677
236,392
Under operation (’08~09)
3
13
24
18
367,161
531,126
Under operation (’09~’11)
4
8
12
17
225,026
262,207
’10~’12
Total
30
49
51
1,010,743
1,120,271
-
Overseas companies : Japan(19), China(13), etc(15)
Western Distripark
(Phase 1-1)
Phase 2 (1,093,000 ㎡) Phase 1-3 (660,000 ㎡)
Phase 1-2 (811,000 ㎡)
Phase 1-1 (16 consortiums) Phase 1-1 (1,015,000 ㎡)
Marine Fuel Supply ▪ Location - Adjacent to the South Container Terminal
▪ Size - Size : 63,000㎡ - Facilities : Jetty, Tanks, pipeline, others ▪ Construction - Samsung C&T International
▪ Operation - Marine & Oil (Hanjin Shipping, Samsung Logistics, others)
▪ Plan - Implementation of environment impact assessment (3, 2012) - Embark on construction (4. 2012)
▪ Operation in 2015
Redevelopment on the old port Container terminals will remain the same. Redevelopment Target Area
HBCT UTC
Pier 4
Pier 3 Central Pier DPCT Pier 2
Gamman
Pier 1
KBCT
◈ Size : 1,511,450 ㎡ ◈ Total Budget : US$ 8.5 billion ◈ From 2009 ~ 2019 (Infrastructure + Superstructure)
Master plan of the Redevelopment
※’09.3월 항운노조 보상협상 완료 ※’09.4월 상부시설 민간사업자 공모
※ Phase for Infrastructure Construction. Superstructure such as buildings will be completed by 2019.
Contents 1 2 3 4
Busan in Korea
Current Status of Busan Port
Current Developments at Busan Port
Busan Port, the optimal platform for your business
Busan Port, another opportunity for your business KORUS FTA
Increase of trade volume between two countries
Take advantage of Busan Port for your business
Busan Port, platform to expand your business. Why?
Opportunity in Western Distripark
Phase 2 (1,093,000㎡)
Phase 1 (2,486,000 ㎡)
□ Development of phase 1 Year
Total
Phase 1-1 (2012)
Phase 1-2 (2013)
Phase 1-3 (2014)
Size(1,000㎡)
2,486
1,014
812
660
Tenants
Over 25
16
13
11
Opportunity in Western Distripark Phase 1-1, 1-2 & 1-3 Phase 2
(1,093,000 ㎡)
Phase 1-3 (660,215 ㎡)
Phase 1-2 (812,067 ㎡)
Phase 1-1
(1,014,358 ㎡)
Land parcel plan
Phase 1-3
Logistics Area
Phase 1-2
Phase 1-1
Supporting Facilities
In case of the Phase 2, the detailed plans are yet to be decided.
At least 5,000 m2 up to 150,000 m2 of the land, available for Logistics & Manufacturing Companies
at the phase 1-2 and 1-3 respectively. After suggestion of its business plan with its required land, BPA will coordinate and adjust the investors’ requirement for the land.
Phase 1-2 □ Tenants Selection ㅇ Size : 811,000 ㎡ ㅇ Selecting Companies : 13 ㅇ Eligibility - Logistics or Manufacturing Companies (at home and abroad)
Phase 1-2
ㅇ Tender Notice : March, 2012 ㅇ Submission & Selection : June 2012 * 60~90 days for proposal preparation
□ Lease term & condition ㅇ Lease Period : Max 30 Year + 20 years ㅇ Lease Fee : 4~28 cents/㎡/month
Differential Rental Rate & Incentive by Foreign Investment Size
Rental Rate Rental Rates 1. Rental Preferences (USD 1 = KRW 1,000)
Base Rent
Eligibility
Rental Rates (㎥/month)
General Tenant Companies (Including manufacturing companies)
$ 0.26 (KRW 281)
Less than USD 1 Million Rental Preferences
Foreign Investment from Foreign Multinational Logistics Companies
$ 0.15
(KRW 168)
$ 0.1
USD 1 Million ~ Less than USD 3 Million
(KRW 106)
More than USD 3 Million
$ 0.04
(KRW 43)
” Logistics business of the multinational logistics companies should be stipulated on the laws of Free Trade Zone
Rental Rate Rental Rates 2 : Incentives for Rental Fee (USD 1=KRW 1,100)
Foreign Investment
Incentive for Rental Fee (㎥/month)
Discount
More than USD 5 Million
50% discount
for
5 years
More than USD 10 Million
100% exemption for 5 years
More than USD 15 Million
100% exemption for 7 years
More than USD 30 Million
100% exemption for 10 years
More than USD 50 Million
100% exemption For 15 years
Incentives
Tax benefits and incentives Tax Benefits and incentives Eligibility Corporate Tax
Foreign Logistics Companies injecting more than
Income Tax
USD 5 Million in the Distripark of Busan New Port
Acquisition Tax Registration Tax
Property Tax
Foreign Logistics Companies, invested in Distripark of Busan New Port
Benefits and Incentives 100% exemption for the first 3 years 50% exemption for the next 2 years 100% exemption for 15 years 100% exemption for the first 7 years 50% exemption for the next 3 years
Platform to your business USA
Busan Distribution Center
Other countries
Benefits from your investment
Logistics Efficiency
Total Logistics Cost Reduction
Inventory reduction
Low Rental Rate
Explore the potential of Busan Port
Busan Port, success for your business