• 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.

• International Commerce and Information Review
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• v.14 no.3
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• pp.209-227
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• 2012

Northeast Asia where is an epicenter of the global financial crisis's conquest is traditional imbalanced region of oil production and consumption. In recent years, the region has been suffered by the shortage of oil storage and transportation facilities due to surging oil trading and necessity in strategic reserves. Therefore, since independent petroleum logistics with the storage facilities and oil trading hub is required to form efficient oil market in this region. In this study, we analyzed the efficiency of refinery facilities by country that is of importance in being a logistics hub in Northeast Asia by employing non-static and dynamic efficiency analysis, which are a part of DEA(Data Envelopment Analysis) and then policy implications have been drawn. The result illustrates Korea's is the highest country in terms of efficiency of oil refining facilities in Northeast Asia. It implies that Korea has strong position to be the oil hub in Northeast Asia.

• International Commerce and Information Review
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• v.11 no.2
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• pp.127-145
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• 2009

With increase in oil demand owing to economic growth in Northeast Asia, the establishment of an oil hub in Korea is recently considered by policy and academic circles. This paper aims to suggest strategic schemes on the establishment of Korea's oil hub in Northeast Asia by comparing Korea's conditions as an oil logistics hub with Singapore which has been an oil hub in East Asia until recent year. Quantitative and qualitative analysis methods were employed in order to examine the competitiveness of Korea's oil hub. This research concludes that Korea is very competitive as an oil logistics hub in Northeast Asia, but so much improvements for realizing the project are necessary such as expansion of storage facilities for oil, institutional instruments for facilitating oil logistics and trading and preparation for incentive schemes on foreign investments in oil and its related industries.

• 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.36 no.4
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• pp.1-16
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• 2020

Since Korea has excellent port infrastructure and competitive petrochemical complexes, there is plenty of potential for creating an oil hub in Northeast Asia. In particular, Ship-to-Ship (STS), which creates high added values, contributes greatly to the national economy. In this study, the liquid cargo volumes of chemical industrial products, refined petroleum products, and crude oil were analyzed at the national and regional (Busan, Ulsan, and Yeosu/Gwangyang) levels. Additionally, a Granger causality analysis was performed between imports, exports, and transshipments, in pairs. ADF, PP, and KPSS were analyzed for the unit root test. In addition, the VAR model and expanded VAR model suggested by Toda and Yamamoto were used for further analyses. Findings revealed a difference in Granger causality depending on the region or cargo type. These findings suggest that policies and incentive schemes for ports need to be differentiated according to the region and cargo types. In addition, the different patterns in the relationship between transshipments and import-export petrochemical cargoes should be considered.