• 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.

• Journal of Navigation and Port Research
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• v.27 no.2
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• pp.179-184
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• 2003

In order to mitigate the overcapacity of Busan port, Busan new port has been developed as transshipment port which is capable of handling 8,000 TEU containership. Generally, design of transshipment port has to reflect the capacity of feeder because both mother vessels and feeders enter the planned port at the same time. However, the existing plan of Busan new port capacity needs to be reexamined since the adopted capacity of each berth at new port, 300,000 TEU, does not seem to be enough to handle both mother vessels and feeders. Therefore, in this study we calculated the required number of berth and berth length by considering cargo handling capacity in terms of the ship size and this study makes some implications in relation with the terminal development plan.

• Journal of Navigation and Port Research
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• v.34 no.8
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• pp.641-647
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• 2010

Container port development in Korea seems to be based on the policy of balanced regional development rather than demand and supply theory. The problem of overcapacity and low utilization faced by several ports such as Kwangyang, Ulsan New Port and Phohang Youngil New Port can back up this. Furthermore as some ports are located closely sharing the same domestic hinterland the revitalization of the ports is not easy resulting in wasting resources with both regional and national aspect. This study, therefore, aims at providing an empirical results for the container port classification of the 5 ports such as Busan, Kwangyang, Incheon, Pyeongtaek and Ulsan. For this several time series data for the ports such as transshipment containers, import and export containers, origin and destination countries, and local origin and destination are analysed. Based on the results of the analysis the 5 container ports are classified together with their practical roles, and the functional overlap of the port including Phohang was analysed.

• Proceedings of the Korea Port Economic Association Conference
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• 2006.08a
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• pp.1-12
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• 2006

As national economies globalize, demand for intercontinental container shipping services is growing rapidly, providing a potential economic boon for the countries and communities that provide port services. On the promise of profits, many governments are investing heavily in port infrastructure, leading to a possible glut in port capacity, driving down prices for port services and eliminating profits as ports compete for business. Further, existing ports are making strategic investments to protect their market share, increasing the chance new ports will be overcapitalized and unprofitable. Governments and port researchers need a tool for understanding how local competition in their region will affect demand for port services at their location, and thus better assess the profitability of a prospective port. We propose to develop such a tool by extending our existing simulation model of global container traffic to incorporate demand-side shipper preferences and supply-side strategic responses by incumbent ports to changes in the global port network, including building new ports, scaling up existing ports, and unexpected port closures. We will estimate shipper preferences over routes, port attributes and port services based on US and international shipping data, and redesign the simulation model to maximize the shipper's revealed preference functions rather than simply minimize costs. As demand shifts, competing ports will adjust their pricing (short term) and infrastructure (long term) to remain competitive or defend market share, a reaction we will capture with a game theoretic model of local monopoly that will predict changes in port characteristics. The model's hypotheses will be tested in a controlled laboratory experiment tailored to local port competition in Asia, which will also serve to demonstrate the subtle game theoretic concepts of imperfect competition to a policy and industry audience. We will apply the simulation model to analyze changes in global container traffic in three scenarios: addition of a new large port in the US, extended closure of an existing large port in the US, and cooperative and competitive port infrastructure development among Korean partner countries in Asia.

• Journal of Korea Port Economic Association
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• v.24 no.4
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• pp.153-171
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• 2008

The purpose of this paper is to estimate economic benefits for the investment of port hinterland. This research has conducted the empirical analysis, by calculating the investment of port hinterland. The key factor for the economic benefits for the hinterland is the utilizing throughputs. This demand is influenced by the throughput in the port. However the data is different between the different organizations. The positive opinions are prevailed about constructing of port hinterland by a optimistic view about throughput. However this paper analyzes the economic benefits by a pessimistic point of view. The main results of this paper are as follows: First, the port hinterland of Busan New Port does not have economic benefit for investment and the hinterland will face the overcapacity problem. We recommend that the plan for investment has to be considered the modification. Second, data of forecasted throughputs is an important factor for evaluation of hinterland's investment. The research for reliable forecasting of throughput has to be preceded for the pertinent evaluation of hinterland's investment.

• Journal of Distribution Science
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• v.16 no.10
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• pp.31-38
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• 2018

Purpose - The purpose of this paper is to seek some alternative to overcome difficult shipping situations for overcapacity pursuing economy of scale, which is widely spread in world shipping. Research design, data, and methodology - The research method to be adopted is first to review evolution of larger ships in terms of theoretical overview, and shipping market is examined, and it is studied some problems and solutions in relation to larger ship as field research aspects. Results - Supply and demand of shipping market is flexible and unpredictable nature of market. Sometime fierce competition has spread out the market, and shipowner may deploy mega ship in terms of economy of scale, etc., to overcome the difficult market situations. Both carrier and shipper have their own positions in this matter concerned. However, it causes some problems in the market including port matters, etc. Therefore, it is asked to solve this problems of larger ship employed in the markets, throughout shipping alliances, etc. Conclusions - Over tonnage done by larger ship has caused some problems in the shipping markets, forming monopolistic market by small number of larger shipping companies, destroying oligopolistic nature of shipping business, therefore, the answer is strategic alliance to collaborate each other.

• Journal of the Korean Institute of Navigation
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• v.13 no.1
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• pp.21-53
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• 1989

In the past twenty years, there has been a rapid increase in the volume of traffic in Korea due to the Korean great growth of the Korean economy. Since transformation provides an infrastructure vital to economic growth, it becomes more and more an integral part of the Korea economy. The importance of coastal shipping stands out in particular, not only because of the expansion limit on the road network, but also because of saturation in the capacity of rail transportation. In spite of this increase and its importance, coastal shipping is falling behind partly because it is givenless emphasis than ocean-going shipping and other inland transportation systems and partly because of overcompetition due to excessive ship tonnage. Therefore, estimating and planning optimum ship tonnage is the first take to develop Korean coastal shipping. This paper aims to estimate the optimum coastal ship tonnage by computer simulation and finally to draw up plans for the ship tonnage balance according to supply and demand. The estimation of the optimum ship tonnage is peformed by the method of Origin -Destimation and time series analysis. The result are as follows : (1) The optimum ship tonnage in 1987 was 358, 680 DWT, which is 54% of the current ship tonnage (481 ships, 662, 664DWT) that is equal to the optimum ship tonnage in 1998. this overcapacity result is in excessive competition and financial difficulties in Korea coastal shipping. (2) The excessive ship tonnage can be broken down into ship types as follows : oil carrier 250, 926 DWT(350%), cement carrier 9, 977 DWT(119%), iron material/machinery carrier 25, 665 DWT(117%), general cargo carrier 17, 416DWT(112%). (3) the current total ship crew of 5, 079 is more than the verified optimally efficient figure of 3, 808 by 1271. (4) From the viewpoint of management strategy, it is necessary that excessive ship tonnage be reduced and uneconomic outdated vessels be broken up. And its found that the diversion into economically efficient fleets is urgently required in order to meet increasing annual rate in the amounts of cargo(23, 877DWT). (5) The plans for the ship tonnage balance according to supply and demand are as follows 1) The establishment of a legislative system for the arrangement of ship tonnage. This would involve; (a) The announcement of an optimum tonnage which guides the licensing of cargo vessels and ship tonnage supply. (b) The establishment of an organization that substantially arrangement tonnage in Korea coastal shipping. 2) The announcement of an optimum ship tonnage both per year and short-term that guides current tonnage supply plans. 3) The settlement of elastic tariffs resulting in the protect6ion of coastal shipping's share from other tonnage supply plans. 4) The settlement of elastic tariffs resulting in the protection of coastal shipping's share from other transportation systems. 4) Restriction of ocean-going vessels from participating in coastal shipping routes. 5) Business rationalization of coastal shipping company which reduces uneconomic outdated vessels and boosts the national economy. If we are to achieve these ends, the followings are prerequisites; I) Because many non-licensed vessels are actually operating and threatening the safe voyage of the others in Korea coastal routes, it is necessary that those ind of vessels be controlled and punished by the authorities. II) The supply of ship tonnage in Korean coastal routes should be predently monitored because most of the coastal vessels are to small to be diverted into ocean-going routes in case of excessive supply. III) Every ship type which is engaged in coastal shipping should be specialized according to the characteristics of its routes as soon possible.