• Title/Summary/Keyword: transportation economies of scale

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Estimating Benefits of Gwangyang Port Container Terminals' Berth Relocation (광양항 컨테이너 터미널 선석 재배치에 따른 기대효과 분석)

  • Yong-Ki Koh;Sang-Hun Han
    • Korea Trade Review
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    • v.45 no.5
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    • pp.141-159
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    • 2020
  • Container terminals at Gwangyang Port are operated by three container operators: A, B and C. Ultimately, there is consensus that a single operator should operate all terminals so that economies of scale can be achieved even in the operation of the container terminal. Integration between operators has a positive effect on both operators and shipping companies. From the operator's point of view, overlapping fixed costs between operators can be unified, reducing overall costs and utilizing spare facilities. On the other hand, from the viewpoint of the shipping company, it is possible to ensure stable use of the port facilities and always allow berthing, reduce days on demurrage and ship waiting, and provide one-stop service for work. However, existing cases of operators' integration or relocation of terminals remained to estimate the expected effects of alternatives, emphasizing only the financial point of view. The port terminal is a large system, and it is important to consider that it is an aggregate of major logistics facilities and equipment. Moreover, if the estimation can be made by quantifying the expected effect, the justification of the terminals' relocation can be further emphasized. Therefore, it is very important to estimate the expected effect from the viewpoint of systemic operation. Moreover, the need for operators' integration can be further emphasized if it can be estimated through quantification of expected effects. Currently, three alternatives are considered as alternatives to the terminals' relocation, and in this study, the optimal plan was derived for the 3 alternatives by the linear planning model of the minimum shuttle transportation cost in the terminal. The optimal plan is alternative 2, which shows the most advantageous integration effect in terms of expected effects. Alternative 2 integrates the B terminal into the C terminal, and the A terminal operates independently as it is.

Identifying Economic Determinants of Regional Exports in Korea (우리나라 지역수출의 결정요인 분석)

  • Kim, Sung-Hun;Choi, Myoung-Sub;Kim, Eui-June
    • Journal of the Economic Geographical Society of Korea
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    • v.12 no.2
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    • pp.142-158
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    • 2009
  • The purpose of this paper is to identify determinants of regional export in Korea using the interregional input-output table and SUR(Seemingly Unrelated Regression) model. Regional exports are classified into four groups; intraindustry intraregional export, interindustry intraregional export, intraindustry interregional export and interindustry interregional export. Labor productivity, scale economies, market size, and international trade volumes have positively influenced regional exports while the interregional distances having a negative effect on them. These results imply that it is necessary to operate regional strategies to enhance productivities and market size and to reduce transportation and distribution costs for revitalize a regional economy by increasing regional exports.

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Analysis of productivity and efficiency for mega container ships: Case of Busan Port (초대형 컨테이너 선박의 생산성 및 효율성 분석 -부산항을 중심으로-)

  • Jong-Hoon Kim;Won-Hyeong Ryu;Shin-Woo Park;Hyung-Sik Nam
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • 2023.05a
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    • pp.121-122
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    • 2023
  • As containerized maritime transport began in earnest, the size of container ships has steadily increased, and recently, the operation of 24,000 TEU-class vessels has become regular. However, concerns about the efficiency and productivity of such mega container ships from a port operational perspective have continued to be raised. The 10th Busan International Port Conference requested an in-depth study on the trends of container ship enlargement by analyzing the order status of ultra-large container ships from major global liners. Generally, the factor that drives the upsizing of ships is the realization of economies of scale that lowers transportation costs per TEU, which leads to a higher level of cost reduction per unit transportation compared to the increase in fuel consumption due to transporting large amounts of cargo with a single ship. However, it is necessary to examine whether this trend of container vessel enlargement is feasible for port operations. To this end, this study compares and analyzes the productivity and efficeiency of different ship sizes to evaluate the effect of ship size on port operations.

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Analysis of productivity and efficiency for mega container ships: Case of Busan Port (부산항 터미널별 선박 규모에 따른 선석 생산성 및 항만 효율성 비교분석)

  • Jong-Hoon Kim;Won-Hyeong Ryu;Shin-Woo Park;Hyung-Sik Nam
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • 2023.11a
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    • pp.72-73
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    • 2023
  • As containerized maritime transport began in earnest, the size of container ships has steadily increased, and recently, the operation of 24,000 TEU-class vessels has become regular. However, concerns about the efficiency and productivity of such mega container ships from a port operational perspective have continued to be raised. The 10th Busan International Port Conference requested an in-depth study on the trends of container ship enlargement by analyzing the order status of ultra-large container ships from major global liners. Generally, the factor that drives the upsizing of ships is the realization of economies of scale that lowers transportation costs per TEU, which leads to a higher level of cost reduction per unit transportation compared to the increase in fuel consumption due to transporting large amounts of cargo with a single ship. However, it is necessary to examine whether this trend of container vessel enlargement is feasible for port operations. To this end, this study compares and analyzes the productivity and efficeiency of different ship sizes to evaluate the effect of ship size on port operations.

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