Busan Port Authority budget to reach KRW 1.3 trillion in 2021
Busan Port Authority (BPA, CEO Nam Ki-chan) stated that the BPA budget for 2021 was set at 1.3339 trillion won (or more than $1.2 bn) by the 235th Port Committee (Chairman Kwalk Kyu-suk) meeting held on Dec. 17. This includes capital expenditure of 986.7 billion won and revenue expenditure of 347.2 billion won.
The 2021 budget planning focused on overcoming COVID-19, establishing a smart shipping and logistics system for the 4th IR, and implementing BPA’s New Deal Projects (30 tasks in 5 areas, investment of 186.5 billion won, and 32.2 billion won in 2021) with a general vision of incorporating core values, such as globalization, digitalization, going green, integration, and strengthening of safety, into new growth businesses.
Considering the management conditions weakened by COVID-19, unnecessary spending and other irrelevant projects were minimized in order to achieve financial soundness.
To be more precise, expenditure was increased to 1333,9 billion won, a 329 billion won increase from 1004.9 billion won in 2020. It includes 362.9 billion won for port infrastructure construction, 214.1 billion won for the North Port Redevelopment Project, 37.6 billion won for investments, 21.2 billion won for port facility maintenance, 4.9 billion won for CR activities, 39 billion won for port security and safety projects, and 4.2 billion won for IT projects, etc.
BPA’s priority for expenditure is the Busan New Port West Container Terminal Development and West Container Distripark Construction projects to prepare for the future, as well as the Busan North Port Redevelopment project, a Korean-style New Deal project.
In particular, BPA's 2021 budget allocated 30 billion won and 32.2 billion won for fighting COVID-19 and implementing BPA-style New Deal projects respectively. It allocated 30 billion won for exempting lease/use fees for carries, operators, and tenant companies to alleviate their pain and to provide temporary incentives for global carriers and shippers.
Moreover, 32.2 billion won was allocated to establish a smart shipping and logistics system (Digital New Deal) and a green and safe port (Green New Deal) by implementing 14 BPA-style New Deal tasks.
CEO NAM Ki-chan stated, “We will continue to maintain Busan’s competitiveness and strength Busan Port capabilities with the general direction of globalization, digitalization, going green, integration, and strengthening of safety.
In particular, we will protect the port worker safety, prevent competitiveness from being undermined, actively adopt the 4th IR technologies at the port, construct port infrastructures consistently, and complete the North Port Redevelopment Project.
We will faithfully work for job creation, nurture port-related industries, and enter into overseas market.”
