• Journal of Korea Port Economic Association
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• v.28 no.3
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• pp.235-257
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• 2012

Recently the role of ports has been changed to satisfy flexibly needs of demands in global economy. A new concept for ports is not just a place for international trade but an important nodal point in logistics chain. The changing environment like this trend creates a high degree of uncertainty and leaves port managers confused with the question how to respond effectively to dynamic market. The latest studies provide that the port must have a good hinterland to achieve competitive advantages in a logistics chain. Korean Government announced "The Master Development Plan for Port Logistics Parks in Korea" in 2006. This contains the plan of hinterland construction of Busan New Port to achieve the status of logistics hub in Asian market. Previous studies rely solely on traditional DCF(discounted cash flow) analysis for investment of hinterland. However DCF method does not include irreversibility, uncertainty and the choice of timing for investment project. This thesis introduces a ROPM(real options pricing model) which overcomes the limitations of traditional valuation methods. The option valuations in this study utilize the Black-Scholes model, the binomial model and the MonteCarlo simulation to value investment opportunity of a port hinterland. In this thesis, an attempt is made to modify the NPV criterion by incorporating the real options approach, and its application is demonstrated in a hinterland construction investment plan. This research has conducted an empirical analysis by calculating economic value of the investment for a hinterland of Busan New Port.

• Journal of Fisheries and Marine Sciences Education
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• v.21 no.1
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• pp.96-105
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• 2009

Recently, the logistics companies are constructing distribution market for logistics service in hinterland which is convenient for management and activity of logistics. Since the expansion of hinterland has physical constraints and related to the adjacent cities, it is vital to select value added types of logistics in the business. This study determines the priority of logistics business types in the hinterland of Busan's new port using DHP, and also it suggests future types of logistics business by comparing result of study with the enterprises located in the hinterland. As a result, the inter-modal transport business has higher weight than the storage business. The distribution manufacturing business also has relatively high weight. Therefore, the inter-modal business and storage business need to keep a present status in hinterland, and the distribution manufacturing business should consolidate the role.

• Journal of Korea Port Economic Association
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• v.27 no.4
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• pp.73-90
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• 2011

Global companies regard the conditions of a location as one of the most crucial factors to assess the competitiveness of ports and the port hinterland, as well as emphasize creation of throughput and the importance of value added logistics in the hinterland under diffusing Supply Chain Management(SCM). This study deals with the evaluation of competitiveness in 7 hinterlands and the establishment of assessment model in hinterland. This study analyzes the importance of factors for the port hinterland competitiveness using AHP method. As a result, logistics factor, accounting for 62.3%, is shown as the relative more important factor, followed by hinterland's economy factors(27.3%) and city/policy factor(10.4%). The result implicates that measures to activate logistics factors with relatively high importance are essentially needed in order to improve the competitiveness of the hinterland of Busan New Port. Especially, it is needed to establish service routes of the port and air networks and to expand infrastructure for support. This study also assesses the competitiveness of hinterlands for the seven domestic and foreign ports based on importance of assessment factors for the hinterland competitiveness using AHP analysis. Busan(3.903) is ranked fourth behind Singapore(4.570), Hong Kong(4.357) and Shanghai(4.042) in assessment.

• Journal of Digital Convergence
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• v.19 no.1
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• pp.167-176
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• 2021

Incheon Port urgently requires designation of a free trade zone to pursue development linked with the port hinterland while promoting continuous growth of the port. This study aims to evaluate the optimal location and derive policy implications for the designation of a free trade zone and analyzed factors property divided by groups. This study used the Consistent Fuzzy Preference Relation (CFPR) analysis technique to derive a practical construction direction by quantifying and evaluating linguistic measures. As a result, the Incheon New Port hinterland showed the highest location competitiveness among the four candidate areas of Incheon New Port hinterland, Aam Logistics Complex 2, North Port hinterland, and Gyeongin Port hinterland. Among the eight evaluation factors consisting of qualitative and quantitative factors, the Incheon New Port hinterland ranked no. 1 in all the four qualitative factors and one quantitative factor and received the highest total score. Also, Group 1 presented 'possibility to attract tenant companies' as first. Group 2 was 'complex size' and Group 3 was also 'possibility to attract tenant companies'. This study has the implication for suggesting the factors and evaluation structure of Free Trade Zone. Future research requires detailed empirical studies, such as expanding the subject of study or selecting factors that reflect the interests of each group.

• Proceedings of KOSOMES biannual meeting
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• 2017.11a
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• pp.144-144
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• 2017

• Journal of Navigation and Port Research
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• v.34 no.7
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• pp.567-575
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• 2010

Ningbo Port develops quickly in recent years and with the combination of Ningbo Port and Zhoushan Port, it becomes another important port in the Shanghai International Shipping center. Competition between the two biggest ports in this area can't be avoided. The goal of this paper is investigating the competence of port from two angles, which are spatial structure of the ports cluster and neighboring ports' attraction to cargoes at conjunct hinterlands. The paper firstly uses the HHI index model and shift-share method to qualitatively and quantitatively analyze the data of container throughputs of ports in the shipping center, in order that investigates the spatial structure of ports cluster. Basing on above researches, the paper employs the location quotient to study Shanghai port and Ningbo port's hinterland distributions at Zhejiang province. The conclusion of this study:(I)the ports cluster of the Shanghai International Shipping Center is highly centralized, and undergoes a porcess of first centralization then decentralization since the mid of 90s, last century. (2)Hinterlands of Shanghai port includes: Hangzhou, Jiaxing, Huzhou and Quzhou districts; Hinterlands of Ningbo port includes: Ningbo, Taizhou and Zhoushan districts.

• Journal of Korea Port Economic Association
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• v.30 no.4
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• pp.91-110
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• 2014

The Korean Government is planning to build commercial districts and amenities for the major port such as Busan, Gwangyang, and Incheon in order to activate the hinterland in each port. The foreign ports in Germany, Japan and China is competing with Korean ports are developing the commercial districts and amenities of seaport hinterland in order to support urban functions. The purpose of this study is to predict the demand for the facility of commercial districts and amenities planned in the Gwangyang seaport hinterland, then to propose its utilization plans. By the demand forecasting, the districts and amenities need to be full of office, accommodation and commercial facilities, etc. In addition, the districts need to be developed gradually for the target of 2035, considering the demand growth. Leasing out the property to secular tenants, it needs to charge rent for profits of port authority. Therefore, it is required to revise the National Ports Act for the private agency to take part in building the facilities of the commercial districts and amenities.

• Journal of Korea Port Economic Association
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• v.27 no.1
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• pp.13-30
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• 2011

It's vital to establish the competitive comparative advantage as the competitions among global logistics companies have become fierce. The global companies, hence, must innovate their Port Hinterland to hub and spoke in a view of SCM. The Port Hinterland significantly affects its local economy and value added. The task of the Port Hinterland nowadays is to improve its efficiencies by utilizing logistics operations and services. The Korean government has planned to reduce the scale of the Port. The CCR and BCC matrices show that there are nine efficient companies: two companies in Gwangyang Hinterland and five companies in Busan Hinterland, though Masan FTZ was only ranked on the 24th, on the rank of world FTZ. This paper aims at finding the cargo volume necessary for achieving the maximum efficiency. This research proposes an appropriate strategy to keep a certain amount of cargo volume stable and presents the Port Hinterland differentiation strategies of Gwangyang and Busan.

• Korea Trade Review
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• v.42 no.1
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• pp.283-301
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• 2017

As a consequence of the changed role and functions in port operations, the role of port hinterland has transformed to multi-functional logistic centre linking more efficiently elements of the supply chain. This paper analysed distribution centre selection factors in Busan new port hinterland, aiming to diagnose and evaluate the operational situations of port hinterland as multi-functional logistics centre. Based on a data collected from all 122 samples located in Busan new port hinterland, determinants for location competitiveness identified were: political support, market potentiality, infrastructure utilization, market niche, and connectivity. Comparing the difference between an importance and performance, it is revealed that the target port hinterland requires urgent improvement in political supports such as incentive programmes offered by host country, free trade system and related law, financial assistance in constructing distribution centers, and simplicity, ease and efficiency of administrative procedures. The results provide useful insights for establishing future improvement strategies and a strategic agenda to successfully respond to the demands of the companies located in port hinterlands and/or new customers those who want to move in.

• Journal of Navigation and Port Research
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• v.40 no.3
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• pp.121-128
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• 2016

The present study aimed to derive decision factors for residency in the hinterland of Incheon New Port that is undergoing the development of port hinterlands and changes in leasing methods considered from the perspective of companies and analyze the priorities of determinants for residency through Fuzzy-AHP in order to present a direction to activate companies entries into the hinterland of Incheon New Port. When the comprehensive rankings of determinants for residency in the hinterland of Incheon New Port, rent levels among cost factors took the highest ranking with a value of 10.2% followed by the throughput of the port among market factors with a value of 8.2%, the scale of the market on the background with a value of 7.3%,, reduction in inland transport costs among cost factors with a value of 7.1%, connectivity to inland transportation networks among locational factors with a value of 6.7%, and designation as a free trade zone and the scale with a value of 6.4%. When seen from the viewpoint of companies to determine whether to move into the hinterland of Incheon New Port, the rent level should be provided to be more attractive compared to the hinterlands of ports in other regions. In addition, inland transportation costs which are a matter of the most serious concern of shippers in the capital region should be reduced and sea routes that can directly connect Incheon New Port to US ports and European ports should be opened.