Busan Port Authority (BPA) will establish and operate a bonded warehouse at the Probolinggo Port in East Java in order to expand its logistics connections between Busan and Indonesia and support the competitiveness of Korean companies.
[s2If is_user_logged_in()]The BPA is planning to establish a joint corporate entity with a local logistics company PK and the public agency Korea Overseas Infrastructure & Urban Development (KIND) Corporation in order to complete the warehouse construction and begin its sales activities in earnest from December this year.
The joint corporate will handle inland shipping and port unloading and will expand its business scope to include reefer warehouse and new port development and operation.
East Java is the second-largest economic area in Indonesia, one of the top 10 trading partners of Busan Port, following Jakarta, while with congestion in the nearby Surabaya Port, demand for bonded warehouses and other logistics infrastructure is increasing in Probolinggo Port.
Moreover, BPA is expected to complete the construction of BPA-Rotterdam Distribution Center by the end of next year and is working with the Port of Barcelona to operate a distribution centre there from September next year.
The South Korean port authority is in discussions with relevant entities in India, Thailand and Vietnam to operate distribution facilities in those regions too with results expected to be available next year.
“It is meaningful that BPA secured a distribution base in Indonesia despite the prolonged US-China trade war and the Covid-19 situation. BPA will proactively expand Busan’s logistics network with ports overseas,” stated BPA CEO NAM Ki-chan.[/s2If]
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