Table of Contents
- Jasangdae Dock, at the center of heated debate even after decommissioning
- Berth usage, realistic limitations of ‘investment in security facilities’ and ‘sunk costs’
- Shipbuilding industry “We will bear the costs”… but concerns about ‘local conflicts’
- Ship repair or citizen space… a crossroads in the second phase of North Port development
Jasangdae Dock, at the center of heated debate even after decommissioning
Jasangdae Dock at Busan Port opened as the first container terminal in South Korea in 1978. Currently, it is scheduled to be decommissioned at the end of 2024 in relation to the second phase of the North Port redevelopment, but it still garners significant interest in the port industry. This dock holds important historical significance for Busan Port and also has potential for future development.
Currently, the land section is used for cargo handling yards, logistics warehouses, loading equipment manufacturing, and temporary parking for trucks. However, there are conflicts among the shipping industry, Busan Port Authority (BPA), and the local community regarding the future use of five berths. This has led to significant differences in opinion among stakeholders.
Berth usage, realistic limitations of ‘investment in security facilities’ and ‘sunk costs’
Currently, the berth area of Jasangdae Dock is designated as a port security zone, but this designation is planned to be lifted around May 2025.
The issue arises when foreign shipping companies use this berth, incurring costs. It is estimated that approximately 2.3 billion won will be needed to install security facilities, with annual labor costs around 700 million won, totaling about 4 billion won over three years. This cost risks becoming a sunk cost that cannot be recovered when redevelopment construction commences.
In response, Busan Port Authority is conducting an industry demand survey and gathering public opinion regarding berth utilization plans. Realistically, they are considering limited use primarily for government vessels and fueling ships where security zones are not necessary. There is hope that these discussions will proceed smoothly and yield effective utilization plans.
Shipbuilding industry “We will bear the costs”… but concerns about ‘local conflicts’
The Korea Marine Plant Ship Repair Cooperative has plans to utilize part of the berths at Jasangdae Dock for large ship repairs, and has expressed to BPA its intention to bear the costs of security facilities and labor itself. They highlighted the potential to attract high-value MRO (Maintenance, Repair, Overhaul) projects such as maintenance of cruise ships and U.S. Navy vessels.
However, the Ministry of Oceans and Fisheries and BPA maintain that there are only about three years left until the redevelopment begins, and point to plans for future public waterfront park development, arguing that long-term leasing of the berths is inappropriate. Additionally, they emphasized the importance of considering the opinions of local residents who seek to create citizen-friendly spaces.
In this context, it remains to be seen how the cooperative's plans will progress.
From April 21 to 25, protests have been held in front of Busan Port Authority. Protesters claim that “not providing berths despite having agreed to cover all necessary expenses hinders the development of the port industry,” strongly opposing the situation.
Ship repair or citizen space… a crossroads in the second phase of North Port development
The second phase of the Busan North Port redevelopment project is a critical initiative that will significantly impact the future of the old city and the marine industry. Some argue that the temporary utilization of berths at Jasangdae Dock could enhance the quality of shipping and port services and strengthen the international competitiveness of Busan Port.
However, many voices emphasize the importance of improving citizen accessibility and expanding recreational space. Consequently, Busan Port Authority has stated that the use of berths should align more closely with long-term urban planning rather than short-term profits.
They also announced their intention to collect various opinions before making a final decision. The Port Authority's decision will have deep implications for the direction of North Port redevelopment and should be closely monitored. This will be a significant decision that could shape the future of Busan.
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