• Journal of Korea Port Economic Association
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• v.39 no.1
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• pp.149-172
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• 2023

In the Northeast Asian region, including Korea, China, and Japan, with rapid economic growth since the 1990s, intra-regional oil logistics has been increasing. Under such external circumstances, Korea has been pursuing a policy to become a Northeast Asian petroleum logistics hub since the mid-2000s. In order to become a Northeast Asian logistics hub, it is important to establish and promote a business model to promote the value-added oil logistics business. This study aims to propose policies and practical implications for increasing petroleum logistics by analyzing Korea's petroleum logistics business model in Northeast Asia. The results of case analysis through interviews with 23 tank terminal companies are as follows. First, most of the oil storage tank terminal companies interviewed are conducting value-added petroleum logistics such as blending, breaking bulk, and consolidation etc. Second, value-added petroleum logistics is caused by an imbalance in supply and demand among neighboring countries in Northeast Asia. In particular, there is a high demand for breaking bulk and blending connecting Japan, Oceania, the United States, and South America. Third, it is necessary to promote the promotion of value-added logistics by improving infrastructure, institutions, and regulations in response to the demand for value-added petroleum logistics, which will greatly contribute to Korea's policy for being Northeast Asian oil hub.

• Journal of Distribution Science
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• v.11 no.6
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• pp.31-40
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• 2013

Purpose - The Northeast Asian Logistic Hub strategy was established to create a national competitive advantage in northeast Asia. Countries in this region are competing fiercely to become the central base distribution port as the volume of container shipping continues to increase due to the northeast Asian (especially Chinese) economic growth. The primary method by which shippers are improving their customer service and distribution is enhancing profits by minimizing call ports on the key route through strategic affiliations and the use of large vessels. Each nation is planning large-scale investments in the construction of sea ports that can accommodate large vessels. This paper proposes ways by which the logistical strategies of domestic corporations can keep pace with changes in government policy concerning the Northeast Asian Business Hub policy. It examines the logistics system in the Northeast Asian region, analyzes the government's Northeast Asian Business Hub policy, and suggests logistical strategies for domestic corporations through an analysis based on a questionnaire designed to grasp domestic firms' needs and goals. Research design, data and methodology - The purpose of this study is to determine how shipping companies establish partnerships with third-party logistics providers and draws out the implications of the results. The survey methods used were personal interviews and questionnaires distributed to a sample population through e-mail, fax, mail, and telephone. A total of 600 questionnaires were distributed, of which 165 were returned. Among these, ten were excluded due to insufficient content; ultimately, 155 were used for the sample. The statistical data collection process was analyzed through data coating and a statistical package program. Results - This study argues that greater flexibility in policies, administration, and systems will be needed to significantly improve established business practices. In this dissertation, we primarily identify that in order to become a center of northeast Asian logistics, Korea must adopt a new paradigm and abandon the existing systems that are based on the economic and social systems that have stemmed from bureaucracy, inflexibility, chauvinism, and equalitarianism. Flexible policies, administration, and systems will be necessary to improve business practices. Domestic corporations must establish a strategic logistics hub and related network while simultaneously pursuing value-added logistics businesses by increasing their manpower and building a logistics information system. This will strengthen their competitive edge and lead to system improvements. Conclusions - Domestic corporations must adopt a new paradigm and use more reasonable business laws, systems, and policies that are based on market-driven flexibility and transparency. Moreover, social norms and regulations should be established to help ensure political and social security. Korea must also develop a culture of tolerance for foreign companies. Finally, the paradigm defining the policy governing the development of the capital city and its satellite cities in this context must be changed.

• Journal of Korea Port Economic Association
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• v.27 no.2
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• pp.183-194
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• 2011

Countries in the world make a strategic effort to develop their own ports into hub ports and lure transshipment cargoes. Likewise, the Busan Port tries to become a container hub port in Northeast Asia, but there is lately a gradual decline in the number of transshipment cargoes. The purpose of this study was to examine the influential factors of port transshipment traffic in an effort to identify the determinants of transshipments in the Busan Port. In existing studies, harbor infrastructure, maritime transshipment cost, port cost and port service were primarily presented as the determinants of transshipment traffic after surveys were conducted by experts. In this study, the transshipment traffic in the Busan Port was selected as a dependent variable, and the container traffic and transshipment traffic of ports in adjacent countries and each country's amount of trade and economic growth rate were selected as explanatory variables to analyze what factors determined the transshipment traffic in the port.

• Journal of Korea Port Economic Association
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• v.17 no.2
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• pp.1-28
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• 2001

Korea has been at the forefront of efforts to enhance international cooperation in transport and communications within Northeast Asia. This effort is driven not only by the benefits that could accrue to the Korean Peninsula but also to all nations in the region. Mutual cooperation within Northeast Asia would reduce transport and communications costs and provide the basis for a regional transport and logistics network. Before progress can be made towards an integrated transport and communications system in Northeast Asia, however, there is a need to evaluate its prospects, outline a visionary plan, and detail a preferred strategy. The strategy to develop the Korean Peninsula as the gateway for Northeast Asia should harmonize with the region's common transport (and communications) policy The strategy adopted by South Korea is focused primarily on the development of an improved logistics infrastructure that would be extended to North Korea upon reunification. The seaport and airport developments In Korea will have to be supported by improved access to planned high-speed railways, expressways and freight distribution centers that, in turn, are to be integrated with new telecommunications and computer technologies. The benefits from these improvements will be lost unless existing government monopolies controlling seaport, airport, rail, road and expressway developments are commercialized to ensure that the price of transport reflects its actual cost. Technical harmonization between different modes should be promoted to facilitate efficient intermodal transport between the Korean Peninsula and the rest of Northeast Asia.

• 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 Port Economic Association
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• v.20 no.1
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• pp.95-122
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• 2004

This study focuses on analyzing the potentiality of economic integration and the changes in logistics circumstances in Northeast Asia. So far as the changes in logistics circumstances in it, it is emphasized a complex transport system by sea and by land, according to the connection with the Railroad of South-North in Korean Peninsula and the Railroad of the Continent of Siberia. It first considers the propriety of economic integration among Korea, China and Japan in Northeast Asia. The first stage of the economic integration in Northeast Asia means it is started from contracting of FTA(Free Trade Agreement) which just agreed at the Summit Conference among Korea, China and Japan in ASEAN＋3(Korea China. Japan). At that time, the Summit Conference between the three countries have agreed to study on the propriety of FTA charging by own country's research organization. At first China has been hesitated to join with FTA in spite of high growth in his economy, because the time is not yet for it. After all, China also decided himself to participate to FTA together with Korea and Japan by reacted to the stimulus at the conference atmosphere between every country of ASEAN. The discussion on the changes in logistics circumstances also is needed to deal simultaneously with a situation in the economic integration in Northeast Asia. It is worthy to be paid our attention to the restoration of the Railroad of South-North in Korean Peninsula, which was disconnected for a long time from the dispute between South Korea and North Korea. Therefore, it needs to be investigated together with the movement of economic integration in Northeast Asia. The reaction on the restoration of the Railroad of South-North in Korean Peninsula is not only limited to the transport of trade cargo between South Korea and North Korea, but also it is reached to all of Northeast Asia, so far as to all of the area of Russia, Europe, and the other neighbor countries. Because this railroad is connected with the Railroad of the Continent of Siberia. The transport of trade cargo in Northeast Asia have been mostly depended upon the transport by sea until now. However, it would be divided into the transport by sea as well as by land from now. As its economic effect, the restoration of the Railroad of South-North in Korean Peninsula could be not only contributed to reduce the cost of logistics within South Korea and North Korea, but also within or without in Northeast Asia, Russia, and Europe. Consequently, it could be improved the power of international competitiveness of goods in Northeast Asia, according to the formation of a complex transport system together with the transport by sea and by land.

• Journal of Korea Port Economic Association
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• v.25 no.1
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• pp.63-86
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• 2009

With increasing uncertainty of energy market in the world, the policies for the energy resource security have become crucial Several countries with poor energy resource like Netherlands and Singapore have pursued the policy for becoming an oil hub in the region. Singapore has been an oil hub in East Asia for a long time not only because it is well located with a large number of countries exporting and importing oil but it has also pursued strong policies to become an oil hub while establishing favourable institutional, regulatory and business environment for accommodating major refineries and petro-chemical companies. However with growing trading volume of petroleum products in Northeast Asia and a record high price of oil in these days, the necessities of another oil hub in the region are considered in order to reap benefits of the security of economical and stable oil. South Korea is situated astride the main North Pacific shipping route, with deep water ports and proximity to Chinese and Japanese industrial centres that make tank terminal operators Ideal choices for the oil hub in Northeast Asia although it has several disadvantages such as lack of independent storage facilities, underdeveloped oil trading market and unfavourable business friendly climates etc. This study is focused on examining the globalization strategies of tank terminal operators such as Vopak, Oiltanking and Odfjell in order to suggest the policy implications for becoming an oil tub in Northeast Asia.

• Journal of Korea Port Economic Association
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• v.24 no.3
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• pp.125-146
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• 2008

Port marketing using websites in the e-business environment is essential in response to the competition to become hub ports, especially since shipping companies, ports' major customers, are being pressed by shippers to reduce logistics costs and introduce large ships to realize economies of scale, thereby reducing the number of ports of call. In this sense, this study intends to approach the port industry from the perspective of e-business and suggest vitalization methods using Gwangyang Port websites(6C; contents, community, communication, connection, commerce, customization) as one of the ways to turn it into Northeast Asia's hub port of logistics.

• Journal of Distribution Science
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• v.19 no.7
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• pp.29-39
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• 2021

Purpose: As China experienced a crisis due to Covid-19, the global supply chain collapsed and affected the world. Therefore, it is time for a change in port operational efficiency, increasing in importance with changes in the global supply chain. This study analyzed Shanghai Port's efficiency, the world's largest port and representative hub port in Northeast Asia, by looking at the relationship between facility factors and cargo throughput to present hub port development's timely implications. Research design, data and methodology: This study applied the Charnes, Cooper, and Rhodes (CCR) and Banker, Chames, and Cooper (BCC) models of the data development analysis (DEA) to construct an analysis from the input-oriented and output-oriented perspectives. Results: As a result, Yidong Container Terminal can be considered the most optimized in facilities and operation processes. Yidong and Shengdong Container Terminal should maintain current operating levels, while Pudong Container Terminal should review facility investments. Also, Zhendong, Huong, Mingdong, and Guandong Container Terminal should be reviewed to increase cargo throughput or to adjust current input variables in the current state. Conclusions: Therefore, the utilization of the container terminal input variables should be reviewed, and the factors of inefficiency should be improved. Moreover, the strategic focus of container terminal operations should be on increasing annual cargo throughput.

• Journal of Korea Port Economic Association
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• v.20 no.1
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• pp.123-140
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• 2004

With the globalization of economy, there is keen competition among rountries to be a logistics hub and companies are striving to be first in establishing logistics system centering on advantageous sites, especially airport and seaports, to perform supply, production and distribution. Korea competing with Northeast Asia countries is also working out strategies in order to make Korea peninsula a logistics center of Northeast Asia taking advantage of its geographical strength. Gwangyang port has designated as Free Economic Zone together with Pusan and Jinhae, Incheon from October 24th, 2003. However, the introduction of Free Economic Zone in Korea lagged behind other major countries and it has a lot of operational problems. Approximately 600 areas worldwide are designated and operated as a Free Economic Zone and Gwangyang port and its surrounding area has several points to be settled as one of FEZ. First one is its limited functions and related laws. Next is imperfection on development, investment and management system of the hinterland. Lark of promotion activities could be one of the problems. This paper analyzes the above problems and presents various measures to activate Gwangyang Port and Gwangyang Free Economic Zone as follows Benchmarking to promote Gwangyang Free Economic Zone as follows Benchmarking other countries' system, governmental support, introduction & logistics functions, early development of the hinterland, supply of effective one-stop service, investment attraction into the area and diversified promotion & marketing activities.