It has been more recent trends in container trade to make bogger ship from shipowners that many more parties concerned are getting involved. Well, it is natural to swift these situations if we have looked into container trade market in present time, which a lot of trade volumes has increased in world economy. Thus, supply side of shipping service needs to employ more capacity in the shipping market, then newbuilding may be compulsory options, that is deployment of larger ships. To cope with market situations as able shipowner, some alternatives can be also adopted, such as newbuilding, chartering and securing the space by strategic alliance. But whatever he does, shipowner has to keep in mind to prepare for the future. This is much more important factor considered to make investment decision in case of newbuilding and then he can make more efficient decision as well. However, there has been a little problems arisen due to larger ship employed on the trade route, which is linked with seaport, shipping companies and freight rates as well. Although shipowner decides to build new larger vessel as one of corporate strategic decision, there are many questions to be considered in advance. Therefore, in order to take more efficient decision, shipowner has to take into an account various situations surrounded, and then it can lead truly thoughtful decision making process.

The port environment is rapidly changing in North-East Asia. Containerships are getting larger and faster and major shipping companies are converting to Hub & Spoke port networks on the transport systems. Therefore, the main ports in North-East Asia are intensively competing with each other for hub port. In terms of geopolitical position, locational conditions and external reputation of ports, Busan and Kwangyang ports have a comparative advantage in comparison with main ports in other countries. But in terms of weight of transshipment cargos in total container cargos, the quality of infrastructure in ports, the environment of logistics service and the cost of, using ports, Busan and Kwangyang ports have a comparative disadvantage. For the growth into hub port in North-East Asia, it is necessary that Busan and Kwangyang ports improve their weakness. Besides It is necessary to develope ports and hinterland quickly, offer uniformity of foreign investment laws and incentive systems.

The purpose of this study is to consider the problem on pursuit of logistics strategy by our international shipping company in international shipping business under the said circumstance due to the open international shipping market and to suggest the logistics strategy for the consideration of the logistics competition under new international shipping circumstances. The results of empirical analysis are mentioned as follows; First, it shall be considered to maintain the size of company bigger than a certain capability so that it may obtain the superior competition of logistics. Second, as there are the plus correlations between the competition of logistics and the logistic support, it is necessary to pursuit the upgrade service with using EDI system and making up the complex shipping and integrated logistics system in general. Third, with the rationalization of finance policy and the profitable management of shipping company the ratio of net worth can be raised and it can be achieved to make the sound financial structure as reducing the excessive debt ratio. Fourth, it can be effort continuously to perform the investment for the infrastructure of logistics support & the institutional supplement so that it may achieve to increase the efficiency of logistic support at pier and to reduce the cost of logistic support.

There were many theoretical studies using mathematical models about a yard storage capacity in a container terminal so far, but a simulation approach is newly popularizing. The reason why the simulation studies about yard storage capacity were a few was that once the most important part in a container terminal was a quay part. However, from the economic crisis year of 1977, the yard storage part in a container terminal became a critical resource because of the shortage of SOC investment resources. Therefore, after discharging or loading even through there was a waiting in the quay part or not, it can be swiftly improved the efficiency of a container terminal if it was handled rapidly or smoothly in a container yard. So the accurate assessment of yard storage capacity in a container terminal was needed. This study planed to assess the operation capability of a container yard via a simulation model. The model included many chatacteristics of three Korean container terminals such as Gamman Hanjin, Uam, and Hutchinson Busan at the period of 1999 to 2000. The 95% percentile was chosen as a criterion for judging of the storage capability by the recommendation of KPC (1998) and JWD (1998). A simulation approach with system dynamics concept considering the multi-directional impacts within the related variables can probavly foresee the future storage capacity of a terminal not just the past.

The goal of the project on developing Korea as the logistics hub of Northeast Asia is to develop Busan Port and Gwangyang Port as international logistics centers by promoting and attracting more warehouses. As is well known, there is intense competition among ports located in major economic blocs to become the regional logistics hub. Gwangyang is second to none in terms of being favorably located at the center of Northeast Asia. Gwangyang Port, however, lacked in SOC construction and faced the poor government support politics hub of Northeast Asia. They are i) expanding the logistics infrastructuressuch as expressway and railroads between Yeosu Airport and Gwangyang Port, ii) Setting up new port hinterland and industrial complex in the vicinity of Gwangyang Port iii) securing high value-added fixed cargo traffic, and iv) improving laws and institutions.

The paper draws the scales of supply and shortages of port logistics area's human resources based upon the future prospect of its supply and demand. Due to the problems that we face today with human resources training and inequality between the levels of demand and supply, introduction of a new training system by local universities and their overall improvement are brought up as the needs of the times. In order for these to happen, the local universities need to assure originality by specializing Port Logistics area. They need to develop demand-oriented port logistics education programs through establishment of cooperation among the universities, as well as expand qualitative and quantitative improvement their educational programs. In addition the local universities have to act as the central of nurturing local talents by developing an educational-governmental cooperation, leading port & logistics' educational policy as think-tank and producting ready-to-work talent.

With the globalization of economy, there is keen competition among countries 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 penninsula 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 on Gwangyang Bay. Next is imperfection on development, investment and management system of the FEZ. Lack of promotion activities could be one of the problems. If we want to activate the FEZ, we must induce investment at Gwangyang Bay. This paper analyzes the above problems and presents various measures to activate Gwangyang Free Economic Zone by inducing investment for innovation cluster 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 ofeffective one-stop service, investment attraction into the area and diversified promotion & marketing activities.

The purpose of this paper is to investigate the international competition power between Korean ports and Chinese ports according to the port efficiency scores of DEA(Data Envelopment Analysis) by newly introducing the priority vector of AHP(Analytic Hierarchy Process) to the DEA method. Empirical analysis shows the followings: First, there was not big changes of DEA rankings when we use the input-oriented CCR and BCC models after introducing the AHP priority vectors to the input variables. Yantian Port's competition power was declined, but that of Busan Port was up in the BCC model. Second, there was some changes of DEA rankings when we use the output-oriented CCR and BCC models after introducing the AHP priority vectors to the output variables. Rankings of Dalian, Qingdao, Shanghai Ports were up. But Shekou, Yantian Ports showed the declined ranking position in the CCR model. In the BBC model, rankings of Shanghai and Busan Ports were up. But those of Shekou and Yantian Ports were declined. The main policy implication based on the findings of this study is that The Ministry of Maritime Affairs & Fisheries in Korea and China should introduce AHP and DEA approaches when they measure the international competition power by using the porrt efficiency scores of DEA.