Busan finds no takers for new berths
The Busan Port Authority is having trouble finding a taker for three berths at its Busan New Port development, according to reports from various media outlets.
The port had earlier bought the berths from the joint venture entity that's operating the port's existing berths, Pusan Newport Co. (PNC), and was trying to lease them to another operator, with PSA International and Hutchison Port Holdings among those rumored to be interested.
However, no bidders came forward during a bid process that ended this week, according to a report in Lloyd's List.
The Busan New Port has been beset by problems of developing cargo flow since its inception in 2006, first as it struggled to migrate carriers and services from the existing port in central Busan to the new facility some 25 kilometers west of the city. Then, as volumes were increasing, the global economic crisis hit, hurting volumes at all most major Asian ports.
In addition, the New Port has seen capacity grow in spite of the lack of volume growth, with Hanjin opening a terminal of its own in May and Hyundai opening its own dedicated terminal soon. The first phase is operated by PNC, in which DP World owns a stake.
The port authority is now expected to bid the berths out at a later date.
Busan finds no takers for new berths
