Port Competition and Cooperation Strategy of Busan Port
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Abstract
The maritime logistics environment including seaborne trade, shipping and ports is changing rapidly and continuously. Large containerships, mega carriers and global terminal operators try to achieve economies of scale and economies of scope. As a result of the changing environment, the competition between ports to achieve competitiveness is intensive. Port competition among China, Japan and Korea is becoming fiercer, both directly and indirectly, resulting from the increased trade in northeast Asia. Port development projects within each country stimulate more intensive port competition. As a result, overcapacity, fierce price competition and overlapping hinterland problems will be caused in the future. Co-operation for survival is considered as a strategy in order to solve anticipated problems caused by port competition. Busan port, for instance, could co-operate with China and Japan as well as with other ports in Korea. Terminal operators' expansion through investments including joint-ventures will make connections between ports smoother. At the port authority level, continuous cooperative interchange between countries is indispensable.
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