Busan Port operators lock in business with an eye to future competition

Operators of two container terminals in Busan New Port have secured volumes from the container shipping alliances for at least the next five years, in anticipation of enhanced competition when more piers in the port open.

THE Alliance, which consists of Hapag-Lloyd, ONE, Yang Ming and HMM, has signed a contract with Hanjin Busan Newport Company (HJNC), which operates Pier 3 of Busan New Port. HJNC is expected to handle 3 million TEU of the 6.2 million TEU that THE Alliance roughly handles through Busan New Port.

THE Alliance has also inked another terminal service contract with Hyundai Pusan Newport Terminal (HPNT), the terminal operating subsidiary of HMM. HPNT runs Pier 4 of Busan New Port and handles 2.4 million-TEU for THE Alliance annually.

The rest of the containers that THE Alliance sends to Busan New Port are handled by Pusan Newport International Terminal, which operates Pier 1 in the port.

HJNC did not disclose the details of the contract, but Container News knows that it will be for three years, with extension options for two more years.

In addition, the 2M Alliance of Maersk Line and Mediterranean Shipping company has signed a seven-year contract with Pusan Newport Company, operator of Busan New Port’s Pier 2, with renewal options for three years.

Meanwhile, the Ocean Alliance comprising CMA CGM, COSCO Shipping Lines (and its subsidiary Orient Overseas Container Lines) and Evergreen Marine Corporation, uses Busan New Port’s Pier 5, which is operated by Busan New Port Container Terminal Company.

Piers in Busan New Port’s stage 2-4 of development will open in 2022, while those in stage 2-5 are expected to open one year later.