BPA selects the Dongwon New Port Container Terminal Consortiaum to operate the Busan New Port’s West Container Terminal
Busan Port Authority stated that it selected the Dongwon New Port Container Terminal Consortium (Dongwon Consortium) to operate the West Container Terminal at Busan New Port and held a provisional lease contract signing ceremony on September 29, according to the company's release.
BPA selected the Dongwon Consortium as a preferred bidder through competitive open bidding on August 20 and has been negotiating on the details of the provisional lease contract with the Consortium. The Authority has delayed the preferred negotiation period once for verifying the volume attraction plan, as proposed by the Ministry of Oceans and Fisheries, and to consult with shipping labor unions.
The Dongwon Consortium will operate a terminal of 6 berths, integrating phases 2-5 and 2-6 and a feeder terminal, for 30 years from July 2023, when the operation of phase 2-5 begins. It will provide state-of-the-art loading services using automated equipment (9 container cranes and 46 transfer cranes) that BPA plans to set up.
The Dongwon Pusan Container Terminal, a member of the Consortium, plans to transfer the volume and workforce from the North Port Singamman Terminal to the New Port. This will minimize excessive competition created by having multiple terminal operators at the New Port. In addition, if systems, such as the cargo handling fee approval system and volume-linked lease system, are established in the future, the cargo handling market in the New Port is expected to become more stable.
In addition, Hanjin, the largest shareholder of the adjacent Terminal 3 at the New Port, is expected to lay the foundation for the integrated terminal operation between Terminal 3 and the West Container Terminal through equity participation.
BPA plans to actively implement government policies on the Busan North Port and New Port through the conclusion of this provisional lease contract.
In the existing contract, the operator could not transfer the operating right or stake for five years from the use date. However, to resolve industry concern on inability to secure stable cargo volumes due to the non-participation of shipping companies, BPA and the preferred bidder decided to allow shipping companies to participate in the share in the future, and such a change was reflected in the provisional lease contract.
BPA established the Busan New Port West Container Terminal Preparation Council with the Dongwon Consortium so that the container Terminal can open as scheduled in July 2023.
