• Journal of Korea Port Economic Association
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• v.33 no.3
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• pp.17-34
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• 2017

This study aims to analyze the freight transport demand and benefit for the introduction of an automated freight transport system focusing on the Global Industry and Logistics City (GILC) in Busan. In pursuit of this aim, four alternatives were calculated - using the freight volume estimating methods and included, the number of businesses, the number of employees set up, future estimated cargo volume, and switched volume from other transport modes into the GILC. Economic benefits were analyzed against social benefits and costs accordingly. The result of the freight transport demand forecast found, the cargo volume of "Alternative 2-1" to be the most advantageous, applying the number of employee unit method and proportion of employees in Gangseo-gu, Busan. In addition to the conventional analysis of direct benefit items (reduction of transport time, traffic accidents and environmental costs), this study also considered additional benefit items (congestion costs savings, and road maintenance costs in terms of opportunity cost). It also considered advanced value for money research in guidance on rail appraisal of U.K, Federal Transport Infrastructure Plan 2003 of Germany, and RailDec of the United States. The study aims to further contribute to estimating minimum cargo transport demands and assess the economic feasibility of the introduction of new intermodal automated freight transport systems in the future.