• Journal of Korea Port Economic Association
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• v.29 no.1
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• pp.23-45
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• 2013

This paper aims to identify the problems of incentives and find a solution to them by empirically analyzing the port incentives and the development of cargo volume. The current method of paying performance incentives and cargo-increase incentives makes it is possible for shipping companies to get the maximum incentives just by regulating cargo volumes without increasing them. Since the processing volume of transshipment cargo of the Busan port is over the volume eligible for the maximum incentive determined by the tie-up of shipping companies, the transshipment cargo can decrease. The incentive of the Busan port based on the cargo record and increase does not affect the increase of transshipment cargo, only to suffer a loss, and thus a new incentive system is needed that does not allow shipping companies to regulate cargo volumes. Based on the result of this study, We have to apply the even-handed incentive rule which pays the incentive for the cargo volume of the pertinent year with the unit price per 1 TEU to avoid the chicken game among the ports.

• Journal of Navigation and Port Research
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• v.45 no.3
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• pp.117-129
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• 2021

This study intends to verify the effectiveness of incentive schemes at Busan Port' aimed at promoting transshipment cargo. The current incentive schemes of Busan port intended to increase the T/S cargo volume have been disputed constantly. It is imperative, therefore, to restructure the system in accordance with the planned strategy. In this study, in order to ensure objectivity of the incentive schemes, all the parties (carriers, terminal operators and Port Authority) with a direct interest are answered and analyzed using the AHP methodology. Effectiveness is the top priority in the analysis of beneficiary validity of incentive schemes, when incentives are provided to Global overseas carriers compared with Global national carriers, IntraAsia carriers and Terminal operators. In the analysis of incentive schemes, direct cash support corresponding to the quantity of the T/S cargo had the highest effectiveness compared with exemption of port dues, cost compensation, port infrastructure support and subsidy for the service opening. The study results, therefore, reference the Port Authority when restructuring the schemes. This study has been conducted only focusing on the Busan port; however, the findings may have significant implications for overseas Port Authorities intending to implement incentive systems to promote cargo volumes similar to those at Busan port.

• Journal of Korea Port Economic Association
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• v.36 no.3
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• pp.75-98
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• 2020

This study explores the incentive system in Korean ports to become a global logistics hub in Asia or to be competitive among Korean ports as a regional hub. First, we identified the types of port incentives in Korea and in overseas ports. We selected potential incentives applicable to Korean ports and compared whether they were meaningful, efficient, and effective in the short and long term. We selected IPA (Importance-performance Analysis) as an analytical method and surveyed users and experts. The results show that it is necessary and effective to provide incentives for new shipping companies, both export and import shippers, while setting criteria for reasonable incentives. Factors needed for improvement included simplifying and calculating the incentive request process, incentives for terminal operators, and new incentives, in addition to existing incentives. Policy-making organizations will also need to collect feedback on institutional improvements and raise awareness among users. Key factors for improvement include providing incentives for existing shipping companies. In particular, in order to actively manage systematic and efficient policies, incentive criteria for existing shipping companies need to be reconsidered.

• Journal of Korea Port Economic Association
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• v.32 no.3
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• pp.139-154
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• 2016

The port incentive scheme currently implemented in various Korean ports is used as a marketing tool to increase price competitiveness. Typically, ports implement piecemeal imitation strategies to enhance their competitiveness, rather than a precisely designed system. A precise analysis of the effectiveness of a port's system and scheme redesign are lacking because budget allocation is done without input from customers and freight groups. This study models the incentives faced by ports using a linear programming model. We use the Gwangyang port as the base case. Our analysis of the Gwangyang port reveals that there are insufficient incentives implemented when a traditional qualitative analysis is used. We also identify any excess, deficiency, or absence of the incentive effect for each type of customer and freight group. We find the overall budget of the incentive scheme to be more rational when ports allocate funds to minimize port mileage, and allocate 61.77 percent and 38.23 percent of the budget on existing and new (or increased) cargo inventory, respectively. Future studies can build on our work by further considering basic inputs, and by adding a system to estimate the input data of our model to identify constraints and thus provide a more accurate incentive scheme.

• Journal of Korea Port Economic Association
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• v.27 no.2
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• pp.355-372
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• 2011

Various incentive policies for transshipment cargo have been enforced without any evaluation of the effectiveness. Therefore, the purpose of this study is to evaluate the effect of volume incentive on container transshipment cargo. To be different from previous studies, this study tries to quantitatively assess the incentive effects by using econometric techniques. The result derived from the ARIMA type models indicates that the total amount of the increased transshipment cargo during the last 7 years is about one million TEU. In the meanwhile, the multivariate long run equilibrium model implies that the increased transshipment cargo is less than 0.5 million TEU for the 7 years. Furthermore, the structural break tests indicate that the volume incentive does not change the model structures. It means that the effect of volume incentive is not statistically significant. Consequently, the test results conclude the effect of volume incentive on transshipment cargo is not significant although the volume of transshipment cargo is increased to some extent by volume incentive. Considering the magnitude of BPA's expenditure, we doubt the effectiveness of volume incentive. This study, therefore, encourages the port authority to research a more efficient way to induce transshipment cargo rather than focusing on only volume incentives.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2009.06a
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• pp.122-123
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• 2009

최근 세계경기 침체 여파로 전국 항만의 물동량이 감소하는 가운데 인천항의 물동량 또한 증가율이 2007년 20.8%에서 2008년 2.0%로 급격하게 둔화되었으며 2009년도 1/4분기(1-3월)전체 물동량은 309,930백 톤으로 전년동기(379,540백 톤)보다 18.3% 감소하였다. 이에 항만당국은 경기침체와 같은 대외환경의 변화와 주변항만의 적극적인 물량 유치를 위하여 인센티브 정책을 개편하는 등의 전략을 마련하고 있다. 따라서 본 논문은 국내 주요항만의 인센티브 정책을 분석하고 그 시사점을 제시하는 것을 목적으로 한다.

• Journal of Navigation and Port Research
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• v.39 no.6
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• pp.499-506
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• 2015

To analyze the port choice hierarchy, factorial and AHP analysis were conducted based on the survey for shippers using west coastal ports. As the result of analysis with 17 factors, 6 main factors; port service, port operation and geographical condition, connectivity to hinterland, port cost, accessibility and facilities were chosen. Based on this, AHP and correlation analysis of each factor were conducted. And the results were shown as cost, service, facility, connectivity, accessibility and operation in order. In addition, several ways for incentive program, the most important factor based on AHP analysis, to influence shippers around west coastal port were reviewed. As the result of review for the incentive program of domestic container ports, it was shown that three ports, Gun-san, Dae-san and Mok-po, offer incentive to shipper while two ports, Pyeong-tak and Dang-jin, do not. Therefore, the former three ports need to reinforce the existing incentive program while the latter ones introduce it.

• Journal of Korea Port Economic Association
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• v.29 no.2
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• pp.1-17
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• 2013

This paper aims to review the fairness of carriers' incentive schemes at Gwangyang port in 2010 and to show the desirable incentive allocation rules using the proportional and egalitarian rules under cooperative game theory. The carriers' incentive schemes at Gwangyang port in 2010 did not meet the no-envy and the efficiency, and satisfy the symmetry axiom. According to the research findings, the equal surplus method satisfies the axioms of equity, efficiency, symmetry, and progressivity. However, the uniform losses method meets the axioms of equity, efficiency, symmetry, and regressivity. We use a single allocation criterion of the total throughput to show the regressivity and the symmetry principles into the incentive scheme instead of using multiple criteria such as total throughput, increased volume, and coastal volume. The uniform losses method based on the total throughput can distribute the incentive amount according to the intent of the incentive schemes. Hence, we need to establish a rationing system to allocate reasonably the total amount of different types of incentives, avoiding the temptation to adjust the volume shipped between the ports of carriers considering the efficiency of allocation.

• Journal of Korea Port Economic Association
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• v.34 no.1
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• pp.19-34
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• 2018

This study analyzed specific ports' marketing strategies through interviews and, using fuzzy TOPSIS methodology, derived marketing strategies for the Incheon and Pyeongtaek-Dangjin ports by comparing them with the Busan port. Previous studies had concentrated on the Busan port, and the majority of these studies analyzed the present conditions and suggested 4P strategies using a marketing mix. After weighting all of the respondents' answers, the results show that among all marketing strategies, incentive provisions ranked the highest, followed by the intermediary role between the relevant agencies and companies, and last- the agent system for establishing local networks. The fuzzy TOPSIS analysis results showed that the Busan port had the best marketing performance. The most sensitive strategies, based on the sensitivity analysis, were the intermediary role between relevant agencies and companies in the Incheon port, and the incentive provision in Pyeongtaek-Dangjin port. The implications of this study are that the port management agencies' actual marketing strategies were similar to the marketing promotion strategies suggested by previous research, and thus, each port's marketing targets and their characteristics should be clearly defined.

• Journal of Navigation and Port Research
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• v.31 no.3 s.119
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• pp.179-186
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• 2007

Fierce competition to attract the increasing container cargoes of north China in competitive ports has make port marketing to be desperate necessity. In this situation, port marketing of Incheon container ports is requisite conditions to leap one step. Therefore, this study aims to propose core factors for marketing strategy by the feasible marketing analysis. The major shows as follows. Incheon is required to adjust port tariff and handling cost by incentive policy, enhance service coming alongside the berth, increase efficiency of port handling service and inland transportation system.