DOI QR코드

DOI QR Code

A Study on the Profitability of Private Finance Initiative Ports Companies and the Use of Old Ports Rehabilitate-Project

  • Yang, HuckJun (Busan Development Instituted)
  • Received : 2020.09.28
  • Accepted : 2020.10.31
  • Published : 2020.10.31

Abstract

This paper analyzes the profitability of the Private Finance Initiative(PFI) ports and proposes the application plans of the R-project(Rehabilitate project) for old ports to attract and activate private investment in the port industry. The R-project of old ports can reduce the government's financial budget and provide improved facilities for users more quickly than the public sector comparator. Before suggesting the R-project for old ports, the profitability of the currently operating 11 companies of the PFI ports are analyzed using the four ratios of profitability, and the results show that all the companies indicate low profitability, except for the top three companies. To apply the R-project, the three types of R-project ports are categorized as maintaining the function of the port, changing the function of the port, and mixing the function of the port. Additionally, three obstacles and improvement measures are suggested; attracting private business, legal issues, and administrative procedures. This study is conducive to the policy making for the port renewal and the activating PFI for the port industry.

References

  1. Aerts, G., Grage, T., Dooms, M. and Haezendonck, E. (2014), "Public-Private Partnerships for the Provision of Port Infrastructure: An Explorative Multi-Actor Perspective on Critical Success Factors", The Asian Journal of Shipping and Logistics, Vol. 30, No. 3, pp. 273-298.
  2. Ahn, J. W., Cho, J. H., Lee S. H., Kim, N. Y. and Myung G. M.(2017), "Strengthening public-private partnership for infrastructure asset management", Korea Research Institute for Human Settlements.
  3. Bank of Korea(2019), Financial Statement Analysis for 2018.
  4. Jun, C. Y.(2003), "A Study on the Alternatives to the Present Method of Conducting Private Investment Port Project", Ocean Policy Research, Vol. 19. No. 1, pp. 71-96.
  5. Jun, C. Y. and Lee, J. P.(2004), "A Study on the improvement of evaluation criteria to Port Private Investment Project", Jorurnal of Shipping and Logistics, Vol. 19. No.1, pp. 71-96.
  6. Kang, L. S., Yun, S. M., Kwon, J. H. and Kim, S. G.(2007), "Improvement of SOC Project Management for Small Size Project by Using RTL", academic conference, KSCE Journal of Civil Engineering, Vol. 2007, No. 10, pp. 3192-3195.
  7. Kim, D. H. and Joo, J. H.(2017), "A Study on the Private Investment Projects in Korea and Japan: Policy Implications and Case Study", The Seoul Institute.
  8. Kim, W. H.(2005), "Policy Proposals for Upgrading the Private Participation in Port Infrastructure(PPPI) in Korea", Ocean Policy Research, Vol. 20, No. 2, pp. 127-167.
  9. Korea Development Institute(2011), Basic plan for public-private partnership projects, Ministry of Strategy and Finance.
  10. Korea Development Institute(2013), A Study on Detailed Tips for Feasibility Analysis of Rehabilitate Private Finance Initiatives [In Korean].
  11. Korea Development Institute(2019), "2019 Preliminary Feasibility Study Report, Gwangyang Port Nakpo Pier Renewal Project" [In Korean].
  12. Lee, J. H.(2010), "Waterfront and Port-friendly Space" [In Korean], Ocean Land 21 [In Korean], Vol. 7, pp. 161-174.
  13. Lee, J. P. and Kang, D. J.(2013), "A Study on the Model of Choosing the Appropriate Private Participation Type in Port", Journal of Shipping and Logistics, Vol. 29, pp. 879-910.
  14. Lee, J. P., Kang, D. J. and Rho, J.(2010), "Formulation of the Estimation Model of Maintenance Repair Costs in Korean Port Private Participation Projects", The Korea Spatial Planning Review, Vol. 65, pp. 19-39.
  15. Ministry of Economy and Finance(2014), "The Basic Plan of Private Finance Initiative [In Korean]".
  16. Ministry of Economy and Finance(2020), "The Basic Plan of Private Finance Initiative [In Korean]".
  17. Ministry of Land, Transport and Maritime Affairs(2010), The Improvement of Port Facility Maintenance System and the Establishment of Port Renewal Basic Plan (Summary Report) [In Korean].
  18. Ministry of Oceans and Fisheries(2018), The Overview of Port PFI [In Korean], www.mof.go.kr.
  19. Ministry of Oceans and Fisheries(2020), Port Facilities that are more than 30 years old, safer! [In Korean], press release, 2020.4.27.
  20. Seong, Y. C., Youn, M. and Keum, J. S.(2003), "A Study on Port Development in Korea through Private Investment-Analyzing Port Charge in M port", Journal of Korean Navigation and Port Research, Vol. 3., pp. 147-153.
  21. Song, H. S.(2012), "The Activation of SOC Private Sector Investment to the Facilities for Safe Harbor through Project Financing", GNU LAW REVIEW, Vol. 3, pp. 95-140.
  22. UNCTAD(2019), Review of Maritime Transport 2019.