Located along Taiwan's southwestern coast in Budai Township, Chiayi County, Budai Port faces the Taiwan Strait to the west. The port is naturally sheltered by elongated sand bars formed by Tongshan Islet, Boziliao Islet, and Waisanding Islet to the north and northwest. The port is positioned approximately 50 nautical miles south of Taichung Port, 30 nautical miles north of Anping Port, 50 nautical miles north of Kaohsiung Port, and about 40 nautical miles across the strait from Magong Port in Penghu, 32 nautical miles from Longmen in Penghu, and 130 nautical miles from Kinmen. The navigation channel is maintained at a depth of 3.5 meters, accommodating vessels up to 1,500 tons during high tide.

The port currently features seven passenger and cargo wharves (East Wharf 1, 2, and 3, North Wharf 1, 2, and 3, and a small craft basin), serving domestic inter-island passenger ferries and cargo vessels. The main cargo primarily consists of consumer goods and construction materials for offshore islands. Given its strategic location, Budai Port serves as a crucial maritime transportation hub connecting Taiwan's main island with the Penghu archipelago.