Busan Port and Felixstowe Ports Development and Reform, Comparison of Ports - Case Study Example

Port Development And Reform by Ravi Prakash Acedamia Research Presented Acedamic Writing. Freelance Bhusawal, Maharshtra, India. 03 Feb 2009. "In this age every body is trying take lead in business, that in turn develops competition between businessmen. In this age of industrial and technology revolution, the life of human being is getting punished due to various factors creating problems in environment and habitat of human beings as well as other living beings. This is a report that highlights various faces of development by simulating critical information about two renowned ports, named as Busan Port and Felixtowe Port. These both entrepreneurs are running on with aggressively high paced development, to analyze the growth and compare these two giants in shipping business, this paper presents some important information collected from various sources listed at the bottom of this paper. Appendix - 1 refers all the sources of Busan Port those are used to collect information where as Appendix - 2 en-lists all the sources of Felixstowe Port. The paper is presented on request of Acedemia-Reaserch's Customer on the topic 'Port Development & Reform'" Contents: Page. Busan Port 04-07 Busan Port - Overview.. 04-04 Busan Port - Location, Harbor Type, Approaches, Navigation Aids . 04-05 Busan Port - Infrastructure - Terminal , Berths, Trades ... 05-05 Busan Port - Ownership and Development... 06-06 Busan Port - Current Level Of Port Privatization And Future Plans 06-07 Knowledge Economy Research Group . 06-06 Urban Creation Research Group .. 06-07 Busan Port - Identification Of Key Re-Development Plans . 07-07 Felixstowe Port . 07-10 Felixstowe Port - Overview . 07-08 Felixstowe Port - Location, Harbour Type, Approaches, Navigation Aids . 08-08 Felixstowe Port - Infrastructure - Terminal , Berths, Trades ... 08-09 Felixstowe Port - Ownership and Development... 09-09 Felixstowe Port - Current Level Of Port Privatization And Future Plans 09-10 Felixstowe Port - Identification Of Key Re-Development Plans . 10-10 Comparison Between Busan Port And Felixstowe Port 10-11 Differences ... 10-11 Similarities ... 11-11 Conclusion ... 12-12 References 12-16 Busan Port. Busan Port Overview: "Opened under the name of Busanpo in 1876" (BRMAPO, n.d, "Introduction", 'Status of port ') and "called Pusanpo during 10th to 14th centuries", it "was a chiefdome of Jinhan in2nd and 3rd centuries AD", (World Port Source, "Port Of Busan", 'Port History', 2009), "Busan Port has developed into a modern port equipped with four ports, such as North Port, South Port, Gamcheon Port and Dadaepo Port, six container terminals and an international passenger terminal. It has constantly been upgraded since commencement of wharf construction in 1906." (BRMAPO, n.d,"Introduction",'Status of port '). Brief about its history (The "Settlement of japanese in port", See Appendix - 1, 2009). Brief about Busan Port Location, Harbour, Approaches, Navigation Aids: "Located in the South Eastern end of the South Korean peninsula (35 04' 42" north latitude, 129 01' 01" east longitude), Serving as a gateway between the Pacific Ocean and Eurasian Continent.". "Surrounded by mountains and islands, So, water is still and the tidal difference is small. Adjacent to one of the world's three arterial routes, Busan Port is equipped with naturally advantageous conditions.". (BRMAPO, n.d, "Introduction",' Geographical Conditions'). "It's boundaries start from the southern end of Sinmyeong in Myeong-dong of Jinhae-si through the southeastern end of Wudo Island, southwestern end of Yeondo Island, western end of Cheonsumal, Gadeokdo Island, southern end of Gadeokgo Island, Saedngdo Island, Oryukdo Island and 57m mountain top of Dongbaekseom Island in Haeundae into the southern end of Gwanganni Beach." (BRMAPO, n.d, "Introduction", 'Port Boundaries'). "Offers state-of-the-art facilities and is directly linked to both road and rail to Seoul and other industrial areas throughout the Republic of Korea." (World Port Source, "Port Of Busan", 'Port Commerce', Para 5, 2009) "Transportation facilities includes Airport Bus & Seat Bus No.201 from platform No.3 takes 40-50 minutes towards busan station at Seomyeon. Main terminals are International Passenger Terminal for Bus from Jwacheon-dong or Beomil-dong, Express Bus Terminal named as Dongbu Express Bus Terminal (Nopodong), Seobu Inter-City Bus Terminal (at Sasang)." (For more information please refer Transportation, Available on page : ) Infrastructure (Information about Terminals, Berths & Trades.): Today it is South Korea's No. 1 port and the 3rd container terminal in the world (BRMAPO, n.d, "Introduction", 'Geographical Conditions...'). "Korean government recognized & designated the Port of Busan as a trading post in the early 15th Century and allowed Japanese to settle there." (World Port Source, "Port Of Busan", 'Port History', Para 1, 2009).. "Busan International Passenger (BIP) Terminal is being renovated for sustaining growing passenger traffic. The facility was designed for 300 thousand passengers in 1978, and over 1.4 million visitors passed through the terminal in 2006." (World Port Source," Port Of Busan", 'Cruising And Travel', 2009). "Dongbu Pusan Container Terminal (DPCT) opened in 2002, has a capacity to handle 1.2 million TEUs of containerized cargo per year. Offers over 800 meters of quay with draft of 15 meters. The U-AM Container Terminal is the first private terminal in Korea. Offering two berths and over 500 meters of quay and a depth of 11 meters of draft covering over 18.2 hectares and can stack 8000 TEUs of containerized cargo. Hutchison Busan Container Terminal (HBTC) opened in the late 1970s and handled over 20 million TEUs of containerized cargo in 1997. Offers quay of over 1600 meters covering .8 hectares and can stack over 40 thousand TEUs of containerized cargo. Contains railroad connections and equipped to handle hazardous container cargo. Busan New Port (BNP) is under construction. By mid-2009, it will offer nine berths and .8 hectares of quay with up to 11 meters of draft." (World Port Source," Port Of Busan",'Port Commerce', 2009). "Currently, it is equipped with quay wall facilities of 26.8 km for simultaneous berthing of 169 vessels and cargo-working capacities that permit the processing of 91 million tons per annum." (BRMAPO, n.d, "Introduction", 'Status of port '). Ownership and development: All the approaches in development are based on environment friendly setups that is beneficial for all living beings in and around it to maintain a good balance between industrial or urban development and healthy atmosphere as well supported by results obtained through extensive R&D practices classified in various research fields named as Knowledge Economy Research Group and Urban Creation Research Group managed by Research Management Office where as all political conflicts are monitored & resolved by Policy Co-Operation Bureau as independent business units. Under Urban Creation Research Group works on Busan Port Environment, Busan Port Urban Planning Research, Busan Port Transportation Research, Busan Port Maritime & Port Research. And Knowledge Economy Research Group works on Busan Port Economic and Industrial Research & Urban Management & Society Research. (For roles & responsibilities of all groups in this paragraph, See Appendix - 1). Current functions & future plans of Knowledge Economy Research Group : "New growth power industries, Urban economy and industrial structure, Survey and analysis of regional economic trends, Promoting regional growth industries, Building an industrial cluster in south eastern Korea, Enhancing the international competitiveness of the local economy, Adjustment of administrative functions, diagnosis of organization, rationalization of personnel management system, Performance evaluation, innovative management in the public sector, administrative service improvement, Sound fiscal structure, efficient financial management, expansion of urban revenue sources, Activating legislative activities of the council, improving the law and judiciary for the local autonomy, building city governance, Social welfare programs for senior citizens, low-income families, and the disabled, Cultural policies related to citizen lifestyle and leisure, cultural resources, Busan's identity, and so on., Information policy and its social impact, Lifetime learning, promotion of citizen participation." (BDI, KERG) Current functions & future plans of Urban Creation Research Group : "Developing environmental policies for sustainable development, Managing water quality and water resources, Treating sewage and solid waste, Controlling air pollution, noise and vibration, Preserving the ecosystem and restoring the urban ecological environment, Controlling marine pollution, Environmental assessment, Comprehensive urban planning and growth management, Urban design and district unit planning, Land use and public facilities development, Management of parks, green areas, and public spaces, Housing and construction policies, Disaster relief and security, Urban transportation planning and policies, Public transit, Urban logistics, Parking policy, Travel Demand Management (TDM), Road and Transportation System Management (TSM), Intelligent Transportation System (ITS), Environmental-friendly transportation system, Wide-area transportation system, Survey and analysis of urban transportation patterns, and building the database, Port development and management, Port industry and related industries, Port and logistics, Marine tourism, Ocean environmental management, Marine technology, Fishery improvement policy." (BDI,UCRG ) "Establishment of New Project Planning Bureau to work on delivering the solutions for new up-coming challenges in all areas of research & ongoing projects." (BDI (Busan Development Institute), Item: 'New Project Planning Bureau') < http://www.bdi.re.kr/english/> Identification of key re-development plans: 1. Reformation of mass transportation in hand with environmental-friendly approaches and U-Traffic System. 2. Revitalization of Nakdong River's ecosystem (under the name Nakdong River Research Center) 3. In order to meet with the increasing quantity of container freights, port is under development to be completed in 2011 in order to process 8.04M TEU of container freights per annum and to enable simultaneous berthing by 30 vessels. Felixstowe Port. Felixstowe Port Overview: "Port of Felixstowe (PFL) is the largest container port in the UK and one of the largest in Europe. It's a member of the Hutchison Port Holdings (HPH) Group, a subsidiary of the multinational conglomerate Hutchison Whampoa Limited (HWL). HPH is the world's leading port investor, developer and operator, with interests in a total of 50 ports, spanning 26 countries throughout Asia, the Middle East, Africa, Europe, the Americas and Australasia." (Welcome, "Port Of Felixtowe", 2009). Location, Harbour Type, Approaches, Navigation Aids: Positioned on the South East coast of the UK, (Para 1). "Inland, Felixstowe benefits from fast, modern roads to the industrial heartlands of the UK in the Midlands and the North, as well as to the population centers of London and the South East. Complementing this road system, the Port has two rail terminals, with 51 incoming and outgoing trains per day - providing arteries to the national network.", (Para 2). ("Port Of Felixstowe", 'Introduction', 2009.) Infrastructure - including terminal types, berths, trades: The Port has two rail terminals, "With approximately 45 shipping lines using the Port, offering over 70 services and covering some 365 ports around the world." (Para 2, "UK's Biggest Container Port", Port Of Felistowe). "With a navigation channel dredged to 14.5 meters below Chart Datum, and a depth of up to 15 meters alongside the quay, Felixstowe boasts deep-water able to accommodate the world's latest generation of deep-draughted vessels." (Felixstowe Chamber," Facts-Port Of...", Point no. 9.) "Trinity Terminal (First Col.), Area 124.3 Ha, Capacity of 97,000 TEU, Length of quay 2,354m, 7 container deep-sea berths, Depth of water below chart datum - 15m for 910m of quay, 14m for 918m of quay, 11.9m for 300m of quay, 11.6m for 226m of quay. 24 Quayside Cranes of various capacities (in tons) - 8 x 85, 3 x 70,13 x 50, 5 x 85. 82 Stacking Cranes of two capacities (in tons) - 60 x 40 (1 over 5), 22 x 35.6 (1 over 4). Fork Parks - 10 x 5 high stacking container forklifts, 2 top loading forklifts, 40 tones capacity. Reefer point 1285." ("Port Of Felixstowe",'Terminal Facilities',2009) "Land Guard Terminal (Second Col.), Area : 27.9 Ha, Capacity : 11,000 TEU, Length of quay : 554m, 2 container berths, Depth of water below chart datum (of quay) : 11.9m for 268m, 9.7m for 170m, 7.4m for remainder. 3 Quayside Cranes (capacity in tons) : 2 x 50, 1 x 70.12 Stacking Cranes of 12 x 35.6 tones capacity. Fork Park : 2 x 5 high stacking container forklifts. Reefer points - 220.Reefer point 1285." ("Port Of Felixstowe", 'Terminal Facilities' ,2009) "Dooley Ro-Ro Terminal, Area : 3.4 Ha, Length of quay : Ro-Ro 3 - 174m @ 7.3m, Ro-Ro 4 - 250m @ 9.75m." ("Port Of Felixstowe", 'Terminal Facilities', Third Col., 2009) "Rail Terminal (Fourth Col., Second Row), On North 2 Nelson rail-mounted gantry cranes of 40 tones capacity, 2 Morris rail mounted gantry cranes of 35 tones capacity, 2 Kalmar reachstackers of 45 tones capacity. On South 2 Morris rail-mounted gantry cranes of 30 tones capacity. 2 Kalmar reachstackers of 45 tones capacity and 1 RMG 50 tones capacity." ("Port Of Felixstowe", 'Terminal Facilities', 2009) Ownership and development: "The 270-metre extension of Trinity Terminal, opened in November 2004, means that the Port of Felixstowe can provide customers with a continuous quay of over 2.3km, equipped with 24 ship-to-shore gantry cranes." ("Port Of Felixstowe", Para 6, 'Introduction',2009.). "HPUK is working closely with Network Rail to fund gauge and capacity improvements to the route between Ipswich and Peterborough and the East Coast Main Line, and its diversionary routes to South Yorkshire." ("Port Of Felixstowe", 'Sustainable Development', Para 3, 2009.) Current level of port privatization and future plans: 1. A third rail terminal is planned for development on already reclaimed land at the Port's Trinity Terminal, ("Port Of Felixstowe",Para 2, 'Introduction',2009) 2. Hutchison Ports (UK) Limited (HPUK) is coming up with underwater pressure on deep water container handing capacity of UK ports., 3. "Felixstowe South scheme will increase the quay length available for container handling by close to 1,000 meters, giving a total quay length of 1,350 meters. Together with the extension of the Port's Trinity Terminal, Felixstowe will be able to provide a total of over four kilometers of deep-water container facilities, and total capacity at the Port will increase by 1.5 million TEUs, to 5.2 million TEUs per annum. The new terminal will be equipped with 13 of the most modern quayside cranes and 50 yard cranes, and will provide a storage capacity of 46,800 TEUs.", ("Port Of Felixstowe", 'Felixstowe South Reconfiguration', Para 3, 2009), 4. "The capacity enhancement would allow up to 40 freight trains per day to run in each direction by the year 2020, and would help the newly-configured Port to achieve a rail modal share of 26% - taking 500,000 lorry movements off the road per year." ("Port Of Felixstowe", 'Sustainable Development', Para 4), 5. "HPUK have a 10-year planning consent at Bathside Bay, in Harwich, which provides the capability for further expansion, and increases the available capacity at HPUK's Haven Ports to more than 7 million TEUs per annum.", ("Shipping Times UK", 2008, 'Port of Felixstowe expansion continues', Para 7). Identification of key re-development plans: 1. "The Port's plans for the reconfiguration of the southern part of the Port will create a total of 1,350 meters of deep-water quay, supported by 13 quayside cranes.", ("Port Of Felixstowe", Future Development,'Felixstowe South Reconfiguration',Para 3 ). 2. "Hutchison's Port-centric Logistics - concentrating on supply-chain solutions at the very point of landing in the EU. Leveraging the advantages of a port location, offering devanning, consolidation and bonding all within the security of a policed complex." (Para 9). Early visibility, fast tracking, elimination of demurrage and the driving down of inventory levels are just a few of the advantages to be realized from the services on offer. (Para 9, Line 4). ("Port Of Felixstowe", 'Logistics And Warehousing',2009). 3. "Felixstowe South Reconfiguration, (Para 1), involves the conversion of the area previously used by P&O North Sea Ferries Limited, plus the now largely redundant Dock Basin and Land guard Terminal, into a new deep-water container terminal." ("Port Of Felixtowe", 'Future Development',2009). 4. "Felixstowe South Reconfiguration, combined with the planned deep-water container terminal at Bathside Bay, will provide a significant boost for coastal shipping." ("Port Of Felixtowe", 'Future Development', 2009). Comparison between busan & felixstowe ports: Differences: 1. Busan works on well calculated & calibrated scientific methods after evaluation of results on particular research, where as felixstowe has not yet dedicatedly involved in R&D operations for developing new solutions, working on the employee experiences & skilled employees., 2. Busan is dedicatedly involved in building eco-friendly (environment friendly) systems by incorporating R&D divisions separately running & well managed by independent business units, where as felixstowe is planning to make such systems but, not yet incorporated any such system to care about environment & peoples affected by the industrial wastes & pollution., 3. Felixstowe works on aggressively urbanization & fast paced development & build empire that is spreader their trade areas over a very wide ranges, whereas busan's main area of trade is north east part of world., 4. The faith & popularity of busan port is more than felixstowe as the number of passengers passed through busan is more than 1.4 million where as felixstowe has the history of 50,000 passengers., 5. Busan stands at 5th ranking in the list of world's largest handling capacity ports, having around 13 million handling capacity presently, where as felixtowe is standing on much lower rank at 29th position (3.3 Million). 6. The length of quay of felixstowe's trinity terminal is around 2,2354 m where as busan has only it maximum of 826 m, that is around 3 times lesser., 7. Busan new port has berthing capacity of 50,000 tons berths of container terminal covering over 1,400 meters, where as, felixtowe has no plans yet to reach such handling capacity., 8. Total area of busan container storage is 308,000 sq meter, where as felixstove has half of busan that is 150,000 sq meter. Similarities: 1. Both has well established rail terminals, 2. Both are dependent on IT infrastructure for success in completion of almost all projects on time & reducing the project time frames, 3. Both are dealing with Savi Networks as their common service provider, 4. Both are the largest ports in their designated home regions (busan in north east Asia & felixtowe in Europe), 5. Both are among the busiest ports in the world. Conclusion: Busan port is of course much bigger in the area as well its annual handing capacity, that serves north east Asia region & has the history of successful record in delivering the solution to their customers more satisfactorily who themselves has chosen busan for business & transportation, as per the records says the volume of annual passengers passed through the port. On the other hand felixtowe has lower rank than busan & the approach of doing business is aggressive fast paced growth environment, that may have techniques to grow fast by skipping necessary steps to become successful in terms of environment friendly works, solutions with calibrated solutions on proper research for development, may lead felixtowe further in near future, but, at present the vote is for busan. But, doesn't mean that felixtowe has no value or expectation, it is only matter of time, when it grows further & gets more reliable & popular in peoples, it may be having higher rankings in the world's port list. References: Appendix - 1: World Port Source 2009, Port Of Busan, For Port History, Port Commerce, Cruising And Travel, [Internet], Accessed on 02 Feb 2009, Available at BRMAPO (Busan Regional Maritime Affairs & Port Office), n.d, "Introduction", 'Status Of Port facility Development'", Point 3, Para 1, [Internet], Accessed on 02 Feb 2009, Available at BRMAPO (Busan Regional Maritime Affairs & Port Office), n.d, "Introduction", 'Geographical Conditions and Positions', [Internet], Accessed on 02 Feb 2009, Available at BDI (Busan Development Institute), n.d, UCRG (Urban Creation Research Group)), Research Areas, [Internet], Accessed on 02 Feb 2009, Available at BDI (Busan Development Institute), n.d, KERG (Knowledge Economy Research Group), Research Areas, [Internet], Accessed on 02 Feb 2009, Available at Busan Port Environment Research (Busan Development Institute (BDI), n.d,"Working on transformation of Busan into an environmental friendly and sustainable city. The research provides systematic and practical suggestions to preserve the natural ecosystem, as well as to manage the urban environment", Para 1, [Internet], Accessed on 02 Feb 2009, Available at ) Urban Planning Research (Busan Development Institute (BDI), n.d,"Responsible for building comprehensive and strategic urban plans, focusing on the sound and responsible development of Busan, as well as improving local citizen's quality of life. They are also focusing on land use, parks, housing, scenery, and many more.", Para 2, [Internet], Accessed on 02 Feb 2009, Available at ) Busan Port Transportation Research (Busan Development Institute (BDI), n.d,"Develops solutions to address transportation challenges in the metropolitan city. Conducts research on efficient management of the transportation infrastructure, including highways, logistics, the airport and the like to enhance city's international competitiveness.", Para 3, [Internet], Accessed on 02 Feb 2009, Available at ) Busan Port Maritime & Port Research (Busan Development Institute (BDI), n.d,"Responsible for developing Busan as the ocean capital of East Asia in the 21st century by performing research in port-related areas, such as port - policy, construction and logistics. Their research areas include fisheries, marine tourism, and waterfront development. East Asia Logistics Research Center is also ran by this department.", Para 4, [Internet], Accessed on 02 Feb 2009, Available at ). Busan Port Economic and Industrial Research (Busan Development Institute (BDI), n.d, "Aims to foster economic development engines to enhance the city's competitiveness. To achieve this goal, the research studies Busan's new power industries, tourism and convention industry, while examining and assessing changes in the economic environment - both internally and externally - to effectively expand the regional infrastructure. This department also runs affiliated research centers, such as the Center for Regional Economic Analysis and the Center for Women Economic Policy to help activate the regional economy." Para 1, [Internet], Accessed on 02 Feb 2009, Available at ) Urban Management & Society Research (Busan Development Institute (BDI), n.d, "Develops policies and measures to help the city implement urban management strategies that correspond to changes in the domestic and international environment. The main research subjects include public administration and management, public finance, local politics, social welfare, and so on. The research seeks ways of enhancing effectiveness and productivity in the provision of administrative services, design policy formation and evaluation systems, keeping the budget balanced, managing finances effectively, renovating urban management, and establishing the administrative information system. It also conducts policy research in the fields of social welfare, culture and art to improve the citizenry's quality of life.", Para 2, [Internet], Accessed on 02 Feb 2009, Available at : ) Research Management Office (Busan Development Institute (BDI), n.d, "Assists BDI in its goal to become a leading regional research institute by maximizing the institute's research potential. The department plans, coordinates and evaluates research projects, publishes all BDI research results and PR material, manages joint research, and encourages collaborative research with external research institutes. To establish regional identity, the department also runs the Busanology Research Center. Collects and provides the latest information on urban issues, as well as Busan-related materials in order to ensure effective contributions to research activities.", For more information about its functions refer, ("Functions", [Internet], Accessed on 02 Feb 2009, Available at )) The "Settlement of Japanese in Port of Busan was called Waegwan", and it "Continued to exist until Korea's modern diplomatic era began in 1876 when the Port of Busan became Korea's first international port" (Para 1) and the "Busan Maritime Organization was established in 1883." ."Pier Construction began in 1905. Business affairs agency of Port of Busan was opened in 1946, and its name was changed to Busan Maritime Affairs Bureau in 1949."(Para 4). "Busan has been a self-governing city since 1950 when UN army landed there & established a defensive area around Republic of Korea which was transformed in to a major refugee camp occupied by north Korean communists during the Korean war" (Para 3). "Pusan embarked on a major port development effort in 1974, and the Busan Port Coastal Passenger Terminal was completed in 1978. Railway service between Shinsundae and Jasungdae terminals was opened in 1995." (Para 4). And today it's one of the leading international business port supported by well equipped work force and machineries. (World Of Port Source, 2009, Port Commerce). [Internet], Accessed on 02 Feb 2009. Appendix - 2: Shipping Times UK, 09 May 2008, "Port of Felixstowe expansion continues", Para 7, [Internet], Accessed on 03 Feb 2009, Available at Future Development, Port Of Felixstowe, [Internet], Accessed on 03 Feb 2009, Available at Logistics And Warehousing, Port Of Felixstowe, [Internet], Accessed on 03 Feb 2009, Available at Felixstowe South Reconfiguration, Future Development, Port Of Felixtowe, [Internet], Accessed on 03 Feb 2009, Available at Introduction, Port Of Felixstowe, [Internet], Accessed on 03 Feb 2009, Available at Welcome, Port Of Felixtowe, [Internet], Accessed on 03 Feb 2009, Available at Felixstowe Chamber," Facts-Port Of...", Point no. 9, [Internet], Accessed on 03 Feb 2009, Available at UK's Biggest Container Port, Port Of Felistowe, [Internet], Accessed on 03 Feb 2009, Available at : Sustainable Development, Port Of Felixstowe, [Internet], Accessed on 03 Feb 2009, Available at Read More