• Journal of Navigation and Port Research
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• v.45 no.5
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• pp.238-251
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• 2021

It is understood that carriers evaluate several features of ports when fixing the T/S port. Those features can be enumerated as Geographic condition of port, Service network with overseas ports, Level of port productivity, Port infrastructure, Port services level, Port Authority's Policy direction mand Cost competitiveness. The objectives of this study are to: 1) determine if those factors could affect the T/S competitiveness of the port; and 2) to evaluate how Busan port conforms to those determinants factors in such extent. According to results of the analysis after surveying National global carrier, Intra-Asia carriers, Global overseas carriers, Terminal operators, and Busan Port Authority known to be highly influential samples, all factors were proven to be factors affecting the T/S competitiveness of the port. Meanwhile, in the analysis through AHP (Analytic Hierarchy Process) methodology about the order of weight among those factors, Cost competitiveness was answered as the most important factor. On the other hand, in the analysis to find the situation if Busan port conforms to those factors, Busan port was proven to satisfy those conditions to a moderate extent. In the analysis about the order of strength among those factors, Busan port was answered to have the highest strength in the geographic condition. However, it showed the bottom level of strength in the Cost competitiveness which was answered as the most important factor among samples for determining the T/S competitiveness of the port. This indicates that Government and Port Authority of Busan have to concentrate policy capabilities on the improvement of cost competitiveness of Busan port to enhance the T/S competitiveness. In this paper, four policy recommendations are given : Integration of Busan port operation into New port, Combining multiple operators into one or a few, Attracting Global mega carriers as the New port terminal operators, and Continuous Infrastructure expansion.

• 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.

• Journal of Navigation and Port Research
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• v.39 no.5
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• pp.423-429
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• 2015

The expansion on the scale of international trade and rapid economic growth in Northeast Asia have caused intense competition among global companies for securing international logistics center in Northeast Asia. Analyzing location competitiveness for international logistics center in Northeast Asia, this paper aims to extract implications for enhancing locational competitiveness. Employing the relative importance among location selection factors extracted from AHP analysis in prior study, we evaluated the major five port-cities in Northeast Asia including Busan, Gwangyang, Shanghai, Qingdao and Tokyo. In the evaluations, Shanghai (3.926) ranked as the first, followed by Busan (3.859), Qingdao (3.555), Tokyo (3.013) and Gwangyang (2.915). Furthermore, the causal relationships between determinants for location choice decision (logistics factor, cost factor, market factor, service factor and environmental factor) and dependent variables (competitiveness of international logistics center, potentiality to growth, present intention to move into and future plan to move into) were analyzed to provide implications. Results provide useful insights for further improvements, and helps strategic agenda for future development of port-cities.

• Journal of Korea Port Economic Association
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• v.25 no.1
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• pp.125-140
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• 2009

Development strategies of Saemangeum New Port are as follows : First, get port terminal areas to be larger. Second, establish the strategy of investment attraction in consideration of the cargo to be handled in Saemangeum New Port. Third, attract regional cargo from such Chinese provinces as Gangso and Sandongseong so as to differentiate it from the existing ports. Finally, construct such connecting programmes as the strategy of the Hub-and-Spoke calling at ports that can make a mutual win-win competition rather than an opposing competition to attract the cargo from the existing port.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• v.1
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• pp.441-446
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• 2006

The world economy has came into unlimited competition with globalization since 1990. Opening markets to the world is in progress through the expansion of world free trade and internationalization of multinational enterprises. In the maritime transportation for world trade, shipping companies pursue "Hub & Spoke" strategy so a port which is not able to be located as a hub port is degraded as a feeder port. To attract shipping companies, it is necessary for existing ports to provide differentiated service. This paper devises marketing strategies for a competitive port after evaluating relation among the factors affecting port selection when a shipping company chooses a port of call. On the basis of determinants derived from existing researches, we study the relation as well as importance among the factors of port selection.

• Journal of Korea Port Economic Association
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• v.23 no.1
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• pp.115-148
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• 2007

Under the influence of ever-globalized world economy, Yangsan Port of Shanghai, a central hub of Chinese economy, was opened up on Dec. 1, 2005 in the expectation of heart of northeast Asian harbor logistics. It has triggered severer competitions among northeast Asian ports. In an effort to keep robust standing as a central port of northeast Asia, Korea has still built additional new ports and opened up 3 docks in Nov. 2005. Amid these changing port environments, it is foremost to take the competitive edges of new ports in advance of major rival ports in the interest of preoccupying the standing of those new ports as the central hub of northeast logistics. According to the developmental strategies of new ports can be summed up as follows: First, it is required to separate port development from marketing as a part of separating developmental entity from management/maintenance entity. Second, it is required to develop dedicated port for feeder vessels along with new ports to save more time and cost spent by shipping companies. Third, the attraction of jumbo shipping companies to port development needs differentiated countermeasures for each shipping company, and those measures should be taken in advance before jumbo shippers decide their own shipping strategies in future. Fourth, in terms of incentives for attracting jumbo shipping companies, it is required to offer the incentives to them in using new ports in connection with Busan ports. Fifth, it is critical to set up a benchmark of competitors(ports) for establishing one-stop automatic administration process system upon developing ports. Finally, it is required to prepare a plan for using rearward lands in connection with ports for more efficient use of development complex behind port.

• Journal of Korea Trade
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• v.26 no.3
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• pp.23-44
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• 2022

Purpose - Recent issues such as vessel enlargement, strengthening of environmental regulations, and port smartization are expected to increase costs and intensify competition in the port industry. In the new normal era, when external growth has reached its limit, the efficient operation of ports is becoming indispensable for achieving sustainable growth. This study aims to identify the determinants of inefficiency by examining the cost structure and efficiency of container terminals in Korea and furthermore propose the political implications to derive the maximization of efficiency. Design/methodology - This study estimates the cost function of container terminal operators and identifies the efficiency of container terminals using stochastic cost frontier (SCF) in the first stage. In the second step, the SCF results are compared with the data envelopment analysis (DEA). Last, this paper proposes efficiency determinants on container terminal operation to establish appropriate strategies. Out of the 29 container terminal operators in South Korea, 13 operators participated in the survey. The translog cost function was estimated utilizing a total of 116 observations collected over the 2007-2017 period. Findings - Empirical analysis shows that economies of scale exist in Korea's container ports, which provides a rationale for the government's policy to establish the global terminal operator by integrating small terminal operators to enhance competitiveness. In addition, as a result of the determinants analysis, container throughput, weight of direct employment costs, and labour cost share have positive effects on improving cost efficiency, while inefficiency increases as the length of quay increases. More specifically, cost efficiency improves as the proportion of direct employment costs to outsourcing service costs increases. Originality/value - This study contributes to analyzing the inefficiency factors of container terminals through efficiency analysis with respect to a cost function. In addition, this study proposes the practical and political implications, such as establishing a long-term manpower pool, the application of the hybrid liner terminal system, and the construction of a statistical data system, to improve the cost inefficiency of terminal operators.

• 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 Korea Port Economic Association
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• v.28 no.3
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• pp.73-89
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• 2012

As the environment surrounding ports is rapidly changing and ports competition in Southeast Asia has become more severe to secure cargo volumes, ports strive to enhance their competitiveness by improving the efficiency of operations. The operational efficiency of ports, plays a crucial role to improve a nation's. This study aims to analyze the efficiency of container port and its determinants during over five year(2006 to 2010) period using DEA-O and Tobit regression respectively. The results show that firstly, Gamman is the most efficient container terminal, followed by New Gamman container terminal and Hutchison Busan container terminal. Secondly, it is notable that the efficiency of Busan Newport is dramatically increasing, and finally, the yard productivity of the container port is only influencing determinant of all.

• Journal of Korea Port Economic Association
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• v.38 no.3
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• pp.15-28
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• 2022

Bunkering refers to the supply of bunker fuel necessary for the ship operation, as well as minimizing the price and supply cost of fuel itself, and includes supplying good quality fuel oil in a timely manner and at the optimal port. Bunkering is an important criterion in terms of cost for shipping companies because bunkering involves a significant cost to the purchaser of bunkering from the time of initial purchase. This study aims to prioritize selection criteria for tramper companies to call port for bunkering. For this study, the variables were selected by analyzing the common criteria such as price, location, bunker quality and service and infrastructure etc. employed in previous studies. The AHP method was employed to prioritize the criteria in order. As a result of the analysis, the high level factors appeared in the order of price, location, bunkering quality and port service and infrastructure factors. The importance of price criterion and location criterion was found to be high. In the low level criterion of price, the bunker price per MT was ranked first in importance. In terms of location criteria, the location on the main trade route was high. In the low criteria of bunker quality and port service, the bunkering available types and bunker quality were found to be important factors, and in the low level criteria of infrastructure, anchorage and availability of bunkering during loading and discharging and port security factors were found to be important criteria. This study provides the guidelines for research designed to compare the bunkering port selection factors and to derive their importance suggesting the ways to enhance competitiveness as a bunkering port.