• Title/Summary/Keyword: Port Price Competition

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Port Competition and Co-operation as a Strategy of Busan Port

  • Yoon, Mi-Sun;Nam, Ki-Chan
    • Journal of Navigation and Port Research
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    • v.30 no.9
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    • pp.749-754
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    • 2006
  • The maritime logistics environment including seaborne trade, shipping and ports is changing rapidly and continuously. Large containerships, mega carriers and global terminal operators try to achieve economies of scale and economies of scope. As a result of the changing environment, the competition between ports to achieve competitiveness is intensive. Port competition among China, Japan and Korea is becoming fiercer, both directly and indirectly, resulting from the increased trade in northeast Asia. Port development projects within each country stimulate more intensive port competition. As a result, overcapacity, fierce price competition and overlapping hinterland problems will be caused in the future. Co-operation for survival is considered as a strategy in order to solve anticipated problems caused by port competition Busan port, for instance, could co-operate with China and Japan as well as with other ports in Korea Terminal operators' expansion through investments including joint-ventures will make connections between ports smoother. At the port authority level, continuous cooperative interchange between countries is indispensable.

An Analysis of Price Competition between Two Ports using Game Model (게임모형을 이용한 두 항만간 가격경쟁에 관한 연구)

  • Kim, Tae-Gi;Park, Gyei-Kark
    • Journal of Korea Port Economic Association
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    • v.25 no.3
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    • pp.251-268
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    • 2009
  • This study analyzes price competition between two ports theoretically using a game model. We considered two cases: in Case I, consignors are located in a given position, and in Case II, consignors are distributed uniformally between two ports. The results are as follows. In Case I, the higher consignors' preferences for quality are, the more two ports' prices increase. As the locations of consignors are closer to Port H, the price of Port H increases and that of the low quality port(Port L) decreases. In addition, when transportation cost increases, the price of Port L decreases and the price of Port H tends to increase. If the quality of Port H improves, the price of the port H increases but the price of Port L is not clearly determined. In Case II, the higher consignors' preferences for quality are, the more two ports' prices increase. As transportation cost increases, the prices of both ports decrease but the price of Port L decreases twice as fast as that of Port H. In addition, if the quality of Port H improves, the price of Port H increases but the price of Port L decreases when transportation cost is high.

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Co-opetition Strategy for the Balanced Development of Busan Port

  • Lim, Joung-A;Ann, Ki-Myung;Rim, Il-Kyu;Lee, Sung-Yhun
    • Journal of Navigation and Port Research
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    • v.33 no.4
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    • pp.263-270
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    • 2009
  • Busan North port is facing crisis due to the opening of the New port. The North Port and NewPort are competing for a limited volume of cargoes and this competition is leading after all to price competition, lowering cargo work fee that may result in the failure of both This paper proposed the balanced development plans, which are the strategies of business tie-up and activation between the North Port and NewPort by introducing the strategy of "co-opetition" and the analysis for the success factor of co-opetition: to solve this operational problems on Busan port. It is found out that activation strategy is more successful co-opetition strategy than business tie-up strategy. The execution for the two co-opetition strategies will lead Busan Port to the balanced development as well as the enhanced competitiveness and will leap Busan port into global hub port as well.

On the Application of Game Theory to the Competition among Major Ports in NE Asia for T/S Cargos (환적화물 유치를 위한 동북아 항만간 경쟁에 게임이론의 응용)

  • Han, Xu;Park, Gyei-Kark;Ahn, Tae-Young
    • Journal of the Korean Institute of Intelligent Systems
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    • v.22 no.2
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    • pp.261-266
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    • 2012
  • Due to rapid growth of East Asian economy, some changes are being made in trade volume and shipping market of this area. Busan port in Korea and Shanghai port in China are continually increasing their investment in port development and competitiveness in order to become the logistics hub of Northeast Asia. Especially the competition for transshipment containers becomes more and more fierce. So in this study, we set a goal of increasing the port competitiveness on transshipment cargo by an analysis of competition strategies. We choose the Busan port and the Shanghai port as the research objects, game competition model and real data is used to analyze the two ports' price strategies and market share. According to the results, some advices will be put forward to enhance competitiveness of the two ports.

Improvement of the Parallel Importation Logistics Process Using Big Data

  • Park, Doo-Jin;Kim, Woo-Sun
    • Journal of information and communication convergence engineering
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    • v.17 no.4
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    • pp.267-273
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    • 2019
  • South Korea has allowed parallel importation since 1995. Parallel importation causes competition among importers in the logistics process allowing, consumers to purchase foreign brand products at low prices. Most parallel importers base product pricing on subjective judgements. Fashion products in particular, have different sales rates depending on trends and seasons, so sales performance varies greatly depending on selling price timing and policy. The merchandiser (MD) set the price on parallel importation products by aggregating information on imported products and pricing goods. However, this customized process is very time consuming for the MD. This is because the logistics process of parallel importation's customs clearance procedures and repair works is complicated and takes a significant amount of time. In this paper, we propose an improved parallel importation logistics process based on big data, which automatically sets the price of parallel importation products.

A Study on Stabilizing Container Terminal Market in Busan Port (부산항 항만하역시장 안정화 방안에 관한 연구)

  • Ryoo, Dong-Keun;Choi, Jin-Yi;Kim, Tae-Goun
    • Journal of Navigation and Port Research
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    • v.36 no.10
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    • pp.895-904
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    • 2012
  • Today, the competition for hub-port is getting fierce and the shipping liners have enjoyed the increased bargaining power over the terminal operators through the mergers & acquisitions (M&A) and strategic alliances. This result leads the competition among terminal operators to attract liner companies and cargoes in their terminals. In demand side, however, there is a limited container cargo volume to handle because of a steady growth of cargo traffic. While, in supply side, continuous development of port terminals increased more competition among ports or terminals for cargoes. In particular the terminal operating market of Busan port is distorted because of the cargo competition between Busan North-port and Newport. The main purpose of this study is to suggest the stabilization measures of container terminal operating market in Busan port through analysis of the terminal operation market structures and market survey analysis method. For stabilizing the container terminal market, this study suggests the improvement of the legal and institutional system such as improvement in determining and reporting system of stevedoring tariff, establishment of fair competition rules etc., the introduction of port pooling system and adoption of volume-linked terminal lease system with cargo volume ceiling system for each terminal operator.

A Study on Changes in Competitive Factors: focused on Asian Neighbor ports (항만경쟁요인의 변화에 관한 연구 - 아시아 역내 인접 항만을 중심으로 -)

  • 이충배;이정민;양재훈
    • Journal of Korea Port Economic Association
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    • v.19 no.1
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    • pp.43-68
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    • 2003
  • With development of Asia's economy, the ports in trunk route have increased its handling capacity According to previous studies, main determinants to become hub-port are referred to location, connection inland transport with hinterland, port service availability and efficiency, cost of port handling, socio-economic stability and port information system etc. This study aims to investigate the changes in factors determine port's competitiveness particularly in Asian neighbor ports such as Hong Kong port and Shenzen port, and Singapore port and the Port of Tanjung Pelapas in Malaysia by comparing and analyzing main indicators relating to those ports. In conclusion, main reasons which gained competitiveness by newly developed ports such as Shenzen port and the Port of Tanjung Pelapas were port price and massive hinterland space offered.

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Port Alliance Strategy for Promotion of Gwangyang Port (광양항 활성화를 위한 포트얼라이언스 전략)

  • Lee, Sung-Woo;Choi, Yong-Seok
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • v.1
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    • pp.235-240
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    • 2006
  • With the change of global production network, the establishment of new strategy in gwangyang port is required. Especially, the trade pattern has been concentrated to Northeast Asia region according to economic growth of the Asia including China, Japan, and Korea. Hence, Gwangyang port that have price and service competition have to meet of the need of Northeast port alliance and to compete against other countries in variable trade environment. Therefore, the objective of this study is to propose the port alliance strategy in order to promote the growth of Gwangyang port. For the purpose of the Logistics business model in Gwangyang port, we provided the direction of the Northeast port alliance and candidate ports in China and Japan.

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A Study on International Competitiveness Analysis of Korean Ship Management Service (한국 선박관리업의 국제경쟁력 실태분석에 관한 연구)

  • Cho, Kyu-Seong;Ahn, Ki-Meong;Shin, Yong-John
    • Journal of Navigation and Port Research
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    • v.27 no.1
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    • pp.9-18
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    • 2003
  • This is a study for international competitiveness analysis if korea ship management service using the collected data from the fields in industry. making a comparison if ship management company between domestic ones in Korea and mutinational ones in international market is more suitable for it's purpose. but competitiveness level of korean ship management companies are too low to compare. Therefore in this study, ship management devision in Korea overseas shipping companies are selected as a target of camparision and the representative of Korea ship management industry. The analysis of competitiveness is divided by price competition and non-price competition. The former is consist of element likes as crew management cost, dry-docking cost, repair cos, stores & spares cost, lubricants cost and management free cost, The later os consist of element like as quality of sea & shore personnel, efficiency of company's organization, ability of management system. qualifications & certifications, know -hoe for the ship management, structure of control & support ship and office automation & IT system. According to this analysis the ship management division in korean shipping companied are superior to the foreign specialized ship management companies generally. So, it is necessary that korea ship management industry attempt level-up continously and expand into international ship management market positively.

A Study on Strategic of Place Marketing for Busan Port Development (부산항 발전을 위한 Place Marketing의 전략에 대한 고찰)

  • Woo, Seung-Hwa;Yoon, Mi-Sun;Kwak, Kyu-Seok;Nam, Ki-Chan
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • v.29 no.1
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    • pp.345-352
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    • 2005
  • Recently the large shipping companies are reducing a port of call to cut down on expenses related to the large size of ship for economy of scale. Due to this, it is necessary to work out a strategy to overcome the severe competition among ports. According to the importance of port marketing, there were many studies on port marketing. But previous studies for domestic port marketing are considered more importantly Products, Price and Promotion than Place of the 4Ps of marketing mix strategy. But it has to preferentially consider the place strategy in Busan Port because the best advantage is geographical position. So this paper shows the strategic plan of Place Marketing.

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