OAS-CIP Strengthens Cooperation with South Korea

2014 marks the beginning of a closer relationship between port authorities in the Americas and South Korea.  Last November, the Secretariat of the Inter-American Committee on Ports (CIP) and South Korea's Busan Port Authority signed an MOU establishing a framework for cooperation to promote the exchange of experiences, expertise, knowledge and best practices for port development in the Americas.

Strengthening cooperation with a country that has become an example for all developing countries will provide many lessons for the Americas. Korea’s story demonstrates how sound economic and social policies may change the course of a nation. Heavily dependent on international development assistance in the 40s and 50s, Korea joined the OECD in 1996 and is now part of the donor community, providing assistance to once fellow developing countries (see OECD).

The rapid growth experienced by Korea can be illustrated by comparing it to similar economies in our region. In 1980, Korea’s gross national income per capita (GNI in US dollars) was U$1,810; which at the time was comparable to economies such as Belize, Panama and Mexico with GNIs of U$1,430; U$1,580 and U$2,420 respectively.  By the year 2012, Korea’s GNI was a staggering U$22,670 - over 12 times what it only one generation ago and no longer comparable to any LAC country, which has an average regional GNI of U$8,981 (see World Bank Data).

The path taken by Korea to fuel its development was in part driven by expanding its capabilities to trade with the rest of the world. Today, Korea’s known exports include cars, smart phones and TVs, all of which are carefully handled in complex logistics operations through ports such as the one in Busan.

There is indeed much to learn from the Busan Port Authority. It is the fifth busiest port in the world – with a volume of 17 million TEUs (twenty-foot equivalent unit, TEU, is a unit used to describe the capacity of container ships and container terminals). Meanwhile, the first port in LAC - Colon, Panama - is ranked at 40 in the world with a volume of 3.5 million TEUs. It is worth noting that with the exception of Dubai, the top 10 ports in the world are all in Asia (See ranking).

The activities to be undertaken by the CIP-OAS in collaboration with the BPA as part of the MOU include training and capacity building in areas ranging from logistics and supply chain management to port design, planning and construction. As the region continues to expand its markets and strengthen its ports, the CIP-OAS will strive to consolidate new partnerships in support of a more efficient and secure port sector.