DP World Invests $50 Million in Busan New Port to Boost Northeast Asia's Logistics

Thursday, March 21st, 2024

DP World commits USD 50 million to enhance Busan’s logistics, reinforcing South Korea’s position in the international supply chain.

DP World has announced a USD 50 million investment to establish a new logistics centre at Busan New Port in South Korea.

This investment aims to enhance the port’s role as a major logistics hub for Northeast Asia and support the Busan-Jinhae Free Economic Zone’s (BJFEZ) vision of becoming an international business and logistics nexus.

It will see the construction of the DP World Busan Logistics Centre (BLC) on a 75,000sqm site, with operations slated to commence in the second quarter of 2026.

The BLC is expected to handle approximately 80,000 TEUs of cargo annually by 2028 and will provide a range of value-added services, including assembly, processing, and packaging, catering to both local and regional clientele.

The BLC is set to specialise in the export of key Korean industries, including automobiles, automotive parts, fishery equipment, and machinery. It will leverage South Korea’s manufacturing strengths and the BJFEZ’s central role in the nation’s advanced manufacturing sector.

The BJFEZ, recognised as South Korea’s third-largest free economic zone, is strategically located within a 1,200km radius of 700 million people. It serves as a gateway to Eurasia and the Pacific, with plans to develop a ‘Logistics Tri-Port’ encompassing sea, air, and land ports.

DP World’s presence in South Korea is already substantial, with its subsidiary, Pusan Newport Company (PNC), operating the largest terminal in the Port of Busan. The company also holds a majority stake in UNICO Logistics, a multimodal transport and rail specialist with a significant footprint in East Asia, Central Asia, and Russia.

The new investment will integrate the BLC with PNC’s freight handling solutions and UNICO Logistics’ transcontinental rail freight services, further enhancing DP World’s comprehensive logistics offerings in the region.