• Journal of Navigation and Port Research
• /
• v.33 no.7
• /
• pp.491-500
• /
• 2009

In order to attract more transshipment cargoes, Busan Port Authority (BPA) has, since 2003, adopted the volume incentive policy by which more than US$ 10 million annually have been paid back to shipping lines that were called at the port. However, having been a transshipment port for the Northeast region of China, the port of Busan has come under threat from bold Chinese port development projects, notably Shanghai, as northern Chinese regionnl ports place more emphasis on building facilities capable of handling growing trade volumes. Undoubtedly this would lead to a decline in transshipment container traffic moved via Busan. The purpose of this paper is to identify some core factors that have been affecting the increase of transshipment cargoes of Busan and further to recommend BPA an improved incentive scheme with which more T/S cargoes can be attracted into the port of Busan To clarity the reason why T/S cargoes have increased in the port of Busan, several steps are made as follows: The first step is to make a quantitative model for explaining the development of T/S cargoes during the last decade. The second step is to define the dependent and the independent variables for multiple regressions after testing variable significance. For this, data collection and the accuracy of validation have been done by the direct interview with the experienced staffs in shipping companies of both domestic and foreign country. After validating the model with collected data, the final step is to find variables which are explaining the model mostly. In conclusion, 2 variables were clearly identified as core factors that explain well the development of T/S cargoes in the port of Busan: 'Mohring effect' and total cost. It is strongly recommended, by an empirical study, that an incentive scheme be changed to a way which more feeder vessels rather than mother vessels can reduce their direct costs to call in the port of Busan.

• Journal of Korea Port Economic Association
• /
• v.30 no.1
• /
• pp.143-157
• /
• 2014

Most metropolitan shippers (MS) have used trans pacific route (TPR) or Asia-Europe route (AEP) through Busan port (BP). If Incheon new port (INP) sets up the deep water-depths under -16m, however, there might be a change in MS's port choice behavior (PCB). In this respect, the aim of this paper is to estimate an INP's allotment rate for metropolitan cargo using Logit Model (LM) considering changing global shipping and port environment. This paper reviews previous studies related to shippers' PCB then sets up the utility function (UF) including the dummied dependent variable which is comprised of BP and INP, and some independent variables such as the frequency of liner shipping route (TPR), inland transportation fare, and the rate of container terminal service. As a result of LM analysis, BP has 0.6618 and INP has 0,3382.

• Journal of Navigation and Port Research
• /
• v.45 no.6
• /
• pp.314-324
• /
• 2021

Competition between ports around the world is intensifying to attract transshipment cargo. However, recently, there have been concerns about the departure of transshipment cargo volume at Busan Port, such as the lifting of the cabotage policy in China's shipping sector and the implementation of a safe fare system. In terms of operation, terminal congestion and vehicle waiting time are seriously occurring due to imbalance in the transshipment volume of each terminal and vehicles concentrated in a specific time period. In this paper, we propose a method of inter-terminal transportation (ITT) using buffer space to solve the problem caused by inefficient ITT systems and presented a mixed integer programming (MIP) for the problem. The effect of using the buffer space was analyzed for various work volumes and capacity fluctuation ranges by applying the terminal congestion pattern and ITT vehicle in/out pattern based on the Busan New Port data.

• Journal of the Korea Society for Simulation
• /
• v.18 no.2
• /
• pp.19-27
• /
• 2009

This paper addresses the berth allocation problem in naval ports. Navy vessels need various services such as emergency repair, missile loading, oil supply and many others while commercial vessels only unload and load container at the port. Furthermore, naval vessels have to shift frequently due to a limited capacity of the port. The objective of this paper is to minimize the total number of nesting vessels at the naval port. In other word, the objective is to maximize the total number of naval battleships engaging in the sea. A mixed integer programming(MIP) model is developed and experiments are conducted with ILOG CPLEX 11.0. We compare the computational results of the MIP model to the current scheduling approach by the ROK Navy. The results showed that MIP model performed well by minimizing the number of nesting vessels. and avoiding unnecessary shifts.

• Journal of Korea Port Economic Association
• /
• v.27 no.1
• /
• pp.213-234
• /
• 2011

The literature on efficiency of the maritime and shipping industry has typically focused on container ports and terminals. The study presented in this paper uses data envelopment analysis to evaluate ocean carriers based on financial and operational data from 2004 to 2007. A comparison is made up of the efficiency of global ocean carriers in efficiency of financial and operational performance respectively. A positive correlation is shown between the input and output data. In the static-efficiency analysis, we describe CCR, BCC and scale efficiency of Global Ocean Carriers in 2007. And we also provide about the stability and trend of their efficiency for four years (2004-2007) in the dynamic-efficiency analysis. The empirical results validate the necessity of restoring freight rates to facilitate the efficiency of the global ocean carriers supported by adjust of the supply of containership space. The study provides a basis for estimating the competitiveness of international shipping companies, for benchmarking best practice and for identifying the specific factors and causes of inefficiency.

• Journal of Korea Port Economic Association
• /
• v.24 no.2
• /
• pp.175-192
• /
• 2008

Today's individual firms no longer compete as solely autonomous entities, but rather as supply chain. As such the competitive position of a port is not only determined by its internal strengths but also it is also affected by its links in a global supply chin. In other words, port competitiveness is becoming increasingly dependent on external coordination and control of the whole supply chain. The main purpose of this paper is to examine how a port embeds itself into supply chain in order to strengthen its competitive position by focusing on Dubai port case. This paper found that Dubai port used three phases-insertion, integration and dominance-as a strategies for how it can embedded into global supply chain successfully. Dubai's global supply chain strategies give some implications for the further development of the Port of Gwangyang. First, the Port of Gwangyang should fully utilize symbiotic relationship with Gwangyang free Economic Zone. Second, the integration between Korea Container Terminal Authority and GYFEZ can be recommended for fast decision-making and providing a one-stop-service. Finally, Gwangyang should pursue an aggressive supply chain strategy, aims at dominance in the regional port network through port alliance with small and medium ports in neighboring area.

• Journal of the Korean Institute of Navigation
• /
• v.21 no.3
• /
• pp.1-18
• /
• 1997

From the beginning of 1990s , also in the shipping industry, especially liner shipping industry competition has been more intensive and difference of the service quality among shipping companies has been learned . On the other hand, a shipping company has some limitations to do its international mission for itself just by broadening service area. For this reason, the necessity for the global strategi alliance among the shipping companies, which is orginally aimed at sharing of facilities and organixation, has been developed. Through strategic alliance, liner shipping companies do not need to input the additional capitals to increase the material assets such as vessel capacity and spread the risk by the enlargement of the market. Also, they can secure the competitive edge through efficient utilizaton of assets. The purpose of strategic alliance of Hanjin Shipping Ltd., can be summarized as follows ; broadening of service area, cost reduction through vessel sharing, realization of rationalized shipping service by terminal and equipment or facilities sharing. Liner strategic alliances are agreement among liner companies to pol their equipment , andterminals for joint operations and services in which each alliance partner continues to serve its market using jointly operated or used inland feeders,inland terminals, port terminals, and mainline fleets of ship as well as joint pools of containers and equipment. Strategic alliances are generally more formal agreements than consortia and impose longer term and far reaching obligation on their members. It also acts as one in developing and advancing the strategic aims of the alliance members. The most important objective for liner strategic alliances is cost reduction and improvement in capital asset utilization. Main aims of strategic alliance drawn in this paper, can be enumerated follows : 1. improvements in service frequency and quality : 2. improvements in vessel and equipment utilization and thereby reductions in fixed and variable cost ; 3. improvements in market shares and high value cargo booking ; 4. reductions in intermodal storage and port terminal throughput costs ; 5. improvements in negotiating powers with ports and feeder transport providers ; 6. reduction in financial and other fixed costs such as insurance; 7. coordination and integration of MIS and EDI systems and service for greater efficiency and market penetration ; and, 8. improvements in logistic chain management and economic of scale by equipment depot, terminal, and vessel sharing.

• Journal of Korea Port Economic Association
• /
• v.23 no.2
• /
• pp.87-107
• /
• 2007

A rapid growth of interregional trade between China and Korea requires new development and expansion of ports. Currently, there is no rail-ferry system between China and Korea, however, a rapid growth of car-ferry industry shows possibilities. Several candidate cities and regions in East part of China and West part of Korea are selected. We identified times in clearance and station-to-station services as major benefits. We compared three transport modes including candidate cities and regions: container ships, car-ferry and rail-ferry. We used AHP (Analytic Hierarchy Process) as an evaluation method to select most competitive rail-ferry routes between two countries. We also used 7-point Likert scales to find out bottlenecks and factors to introduce rail-ferry services as other questionnaires. As a result, Rail Ferry System(RFS) is a little expensive due to wagon loading efficiency in cargo hold of the ship compared to Car Ferry System or Liner Shipping System. But RFS is recommendable in case of Block Train transport between Korea and EU area by may of TCR and TSR comparing Car Ferry System, because it can reduce total transport cost and connecting procedure at border lines of passing countries.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
• /
• 2023.05a
• /
• pp.110-111
• /
• 2023

As carbon neutrality has recently emerged as a global issue, the carbon neutral roadmap of MOF has been established and various strategies have been proposed to achieve carbon neutrality in the entire marine industry. The port sector is also included in the target for greenhouse gas reduction, but emissions are not being measured due to limitations in data collection and no inventory construction. For building a carbon-neutral port, it is essential to calculate and forecast emissions and set reduction targets. Accordingly, in this study, CO₂ emitted from domestic port equipment was calculated according to the IPCC Guildeline's emission calculation method, and future emission was estimated. As a result of the analysis, about 420,000 tons of CO₂ was emitted based on the cargo volume in 2020, and emissions are expected to continue to increase in proportion to the increase and about 720,000 tons will be emitted by 2050. In order to achieve carbon neutrality of the port, it needs to promote emission reduction by converting the power source for oil-based equipment to eco-friendly fuel. Also container and miscellaneous ports which require complicated cargo handling need to effort to reduce CO₂.

• Journal of Korea Port Economic Association
• /
• v.39 no.3
• /
• pp.179-189
• /
• 2023

Korea's port development adjusts the completion time and size of port facilities according to the future port throughput. The current port development system, which is referred to as "throughput-linked port development (Trigger Rule)", has received positive evaluation for efficiently executing the limited port development budget. Recently concerns have been growing over deteriorating service levels in port facilities in Korea due to accelerated aging of terminal facilities. However, the current port development system does not possess any standard for assessing the level of service and utilizing development indicators. The purpose of this paper is to calculate the Port Service Index (PSI) by selecting indicators to measure the Level of Service (LOS) of ports and deriving weights between the indicators, so that the current "throughput-linked port development (Trigger Rule)" can be linked with the level of service. Based on the result of analysis on a variety of preceding studies, the ship waiting rate, berth productivity, ship turnaround time and ship productivity were selected as four indicators to constitute the Port Service Index. The AHP and entropy methodologies were used to derive weights for each of four indicators which were later combined to calculate the comprehensive weight. The calculation formula of the Port Service Index (PSI) was derived by using the aggregated weights of each indicator, based on which the LOS of domestic container and bulk terminals were evaluated and this measurement result was divided into 6 classes to define each LOS. This paper contributes to draw the improvement measures for port development system that are able to connect the quantitative indicator of throughput, as well as a qualitative indicator of the level of "service".