• Journal of Korea Port Economic Association
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• v.20 no.2
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• pp.1-17
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• 2004

This study deals with legal issues and solutions for a successful management of the Busan Port Authority(BPA) and proposes Busan Metropolitan City Ordinance for the effectiveness of BPA because the role of BPA is to improve Busan regional economy and to strengthen the competitiveness of Busan Port. In order to prepare the ordinance, this paper suggests that the current legislation related to Port Authority(PA), which empowers central government to control the management of port, should be amended to strengthen the port autonomy by allowing PA and local government to control the management and operation on port independently and enabling the building of cooperative system from the City for BPA.

• Journal of Korea Port Economic Association
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• v.19 no.2
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• pp.69-85
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• 2003

The current legislation of the Port Authority which empowers the central government to control finance, personnel management, business of the Port Authority should be amended to allow the Port Authority to exercise its authority over port management and operation by gaining authority from the central government. In addition, to enhance Busan port's competitiveness and for a successive activation of the Susan Port Authority, it is necessary for the BPA to develop its new business and for the Busan Metropolitan City to establish both the department of Port Logistics and relevant regulations. The central government should also support and cooperate with the BPA rather than controlling the Authority.

• Journal of Navigation and Port Research
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• v.33 no.7
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• pp.491-500
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• 2009

In order to attract more transshipment cargoes, Busan Port Authority (BPA) has, since 2003, adopted the volume incentive policy by which more than US$ 10 million annually have been paid back to shipping lines that were called at the port. However, having been a transshipment port for the Northeast region of China, the port of Busan has come under threat from bold Chinese port development projects, notably Shanghai, as northern Chinese regionnl ports place more emphasis on building facilities capable of handling growing trade volumes. Undoubtedly this would lead to a decline in transshipment container traffic moved via Busan. The purpose of this paper is to identify some core factors that have been affecting the increase of transshipment cargoes of Busan and further to recommend BPA an improved incentive scheme with which more T/S cargoes can be attracted into the port of Busan To clarity the reason why T/S cargoes have increased in the port of Busan, several steps are made as follows: The first step is to make a quantitative model for explaining the development of T/S cargoes during the last decade. The second step is to define the dependent and the independent variables for multiple regressions after testing variable significance. For this, data collection and the accuracy of validation have been done by the direct interview with the experienced staffs in shipping companies of both domestic and foreign country. After validating the model with collected data, the final step is to find variables which are explaining the model mostly. In conclusion, 2 variables were clearly identified as core factors that explain well the development of T/S cargoes in the port of Busan: 'Mohring effect' and total cost. It is strongly recommended, by an empirical study, that an incentive scheme be changed to a way which more feeder vessels rather than mother vessels can reduce their direct costs to call in the port of Busan.

• Journal of Korea Port Economic Association
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• v.27 no.3
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• pp.65-90
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• 2011

Private stevedoring companies are leasing and operating the container terminals of the Busan Port. The total amount of lease fees private stevedoring companies paid in 2010 reached 161 billion wons, an approximately 66 percent of the total revenue of the Busan Port Authority(BPA). In other words, lease fees are the most important revenue source for BPA. However, the lease fee assessment system of Busan container terminals goes against the principle of equity due to different assessment methods and criteria adopted by each container terminal. Therefore, the purpose of the study is to analyze the systematic problems of the lease fee assessment system that is used at Busan container terminals, and propose a new standardized scheme with a case study on the new system. In order to standardize the assessment system, the assessment methods need to be simplified by using the Discounted Cash Flow(DCF) method. In addition, the assessment criteria such as assessment duration, discount rates, price indexes, estimated container throughputs, sales unit price per TEU, operation costs, including labor costs, need to be standardized as well. The new standardized assessment system can be applied to estimate lease fees for new terminals. However, for existing terminals to run the new system, factors such as assessment duration, discount rates, price indexes, estimated container throughputs, investment and re-investment costs, and maintenance & repair costs of the new system should be changed slightly.

• Journal of Navigation and Port Research
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• v.42 no.6
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• pp.507-517
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• 2018

The probability of T/S cargo volume to decrease is the most notable problem associated with inappropriate mix of terminal operators in Busan port. Other problems include, the deterioration of the national carriers' competitiveness from non-operation of own terminal, excessively high proportion of financial operators in the engagement of operation which may result in their passiveness in timely investment, additional cost burden to carriers' in the handling inter-terminal T/S cargo transportation and inefficiency in terminal operation by the multiplicity of operators proved to be same recognized as so through the analysis. Therefore, in order to provide solutions for the problems and to strengthen Busan port's competitiveness, this research suggests the restructuring of operators mix as follows. To achieve sustainable growth of T/S cargo, global carriers' participation in terminal operation should be of utmost priority. To enhance the operational efficiency, the operators should be integrated. Similarly, the integration of operators will play a key role in verifying that national carriers' own terminal operation is an important factor in raising its competence. Finally, BPA's active engagement in the entire operation of port is also critical in public-oriented operation of the port. Whereas in the interactive analysis by taking the merits of Busan port into consideraion, global carrier's participation in operation, integration of operators and BPA's engagement in operation proved to contribute to the increase of T/S cargo and strengthening of operational efficiencies of Busan port.

• Journal of Korea Port Economic Association
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• v.32 no.4
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• pp.89-107
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• 2016

It is a critical problem of the Busan container cargo market that serious competition between the north port terminal and the new port terminal is weakening port of Busan's competitiveness. To avoid this serious competition, Busan Port Authority(BPA) has executed a cargo-rate approval system from last year. However if Busan's container terminal operators do not accept this system, the execution performance will be insufficient. Therefore, the purpose of this study is to test the effect of cargo-rate approval in the Busan container cargo market. To attain this research purpose, the current situation was analyzed and the existing papers were investigated. Therefore, cargo-stabilizing factors were extracted and the moderated effect between these factors and cargo-rate approval was tested. The results are as follows. First, three cargo stabilizing factors-(market structure, market behavior, and BPA)-appear to have a strong positive impact on the stabilizing effect; however, the factors that are handled by the operators can not influence the stabilizing effect. In particular, market behavior factors, such as cargo-rate dumping restriction, contributed to stabilizing cargo market. Second, The results appear to have a strong positive impact on the moderated effect as well as the cargo-rate approval. These research results show that the execution of cargo-rate approval is important in stabilizing the cargo market. Therefore, stabilizing the cargo market will contrubute to improving the image and bargaining power of the Port of Busan.

• Journal of Navigation and Port Research
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• v.42 no.3
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• pp.227-236
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• 2018

The Busan New Port and its hinterland have not operated smoothly due to the complicated laws and various related organizations. Thus, many projects involving the port are not matched with its purpose of establishment. In particular, a large-scale apartment complex, which was constructed without a negotiation among the related organizations, is disturbing the port's logistics function. Also, the construction and management of every traffic facilities are conducted by various organizations due to the functions for the facilities are dispersed among them, which has given rise to chaos and responsibility-shifting. As a result, worries about the friction among the organizations and the loss of function of the port hinterland exist. This paper analyzes the problems of inter-governmental functional distributions in the construction and management of the port hinterland of the Busan New Port based on the principles (theories) of functional distribution. In addition, this paper proposes improvements for the functional distribution. The results of the analysis indicated that the functions for housing and traffic facilities were duplicated and dispersed among organizations, resulting in an unclear division of responsibilities. Finally, the paper proposed solutions for the problems: the institutionalization of an administrative conference system among related organizations, using an integrated administration for a wide area (contracting-out, association among local governments), and establishing a special-purpose local government (association among local governments, BPA).

• Journal of Korea Port Economic Association
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• v.34 no.4
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• pp.191-208
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• 2018

This paper focuses on the integration aspect of operators to determine an improvement strategy for the operating system to enhance competitiveness of Busan Port. This Study proposes the following alternatives: valuation standards for the integration of operators, the road map for the integration period, the scope and role setting of integrated operators' participation of Busan Port Authority(BPA), and the separation and linkage North Port and the New Port operators. First, the valuation standards for operator integration should be based on international standards. Additionally quantitative factors such as financial situation, business performance and participating companies' profitability, and the qualitative factors such as management ability, technology, and labor relations should be considered. Second, the timing of North Port's operator integration should be prioritized in the short term in conjunction with the commencement of its phase 2-4, 2-5, and 2-6. The integration of New Port operators should provide a road map for a relatively long-term perspective. Third, the participation of BPA' integrated operators should be considered in terms of publicity as a policy coordinator between terminals and by pursuing the profitability of entering into overseas business by fostering Korean global terminal operators. The scope and role of participation ensures that the experience and technology of the terminal operation business is maximized. Fourth, because physically intergrating the North Port' operator into a single corporate form is difficult, initially establishing a special purpose company to maximize the effect of the integrated operation is necessary. Then, the operators decided to convert to a holding company given the termination of the lease term contract with the State or BPA, and ultimately proposed a merger into a single corporation.

• Journal of Navigation and Port Research
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• v.34 no.5
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• pp.349-354
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• 2010

Cheonan, Republic of Korea Navy patrol ship sank had happened by an unknown incident in the vicinity of Baekryeongdo southwest 1.6km(1 mile) sea at 21:45 on March 26, 2010. In terms of coastal researcher's point of view, it is meaningful to provide the sea condition of basic data necessary for search and rescue, more detailed predictions and inference data through the numerical simulations. Thus, in this study, we investigated the weather, wave, tide, tidal current, bottom soil conditions, and suspended sediment are investigated at the coast of Baekryeong-Daechung islands. And based on these data, the characteristics of sea conditions were analyzed. The tidal period at the time of incident corresponds between neap tide to mean tide. Until April 3-4 after March 26, the date of incident, the strongest velocity was progressed towards the spring tide. Thus, it was considered to be difficult to search and rescue operations. Also, because the ebb tide was in progress during 21:00 to 22:00, mass transport seems to be prevailed to the southeast. In particular, as the sudden turbulence due to the irregular topography existed was anticipated, we had carried out particle tracking experiment. From this experiment, depending on the situation of flow, the initial movement of the particles were directed to the southeast but it turned out moving towards the offshore based on the long term prediction. Through this result, it is considered that the scope of the search operation should be expanded towards the open sea.

• Journal of Korea Port Economic Association
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• v.27 no.2
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• pp.355-372
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• 2011

Various incentive policies for transshipment cargo have been enforced without any evaluation of the effectiveness. Therefore, the purpose of this study is to evaluate the effect of volume incentive on container transshipment cargo. To be different from previous studies, this study tries to quantitatively assess the incentive effects by using econometric techniques. The result derived from the ARIMA type models indicates that the total amount of the increased transshipment cargo during the last 7 years is about one million TEU. In the meanwhile, the multivariate long run equilibrium model implies that the increased transshipment cargo is less than 0.5 million TEU for the 7 years. Furthermore, the structural break tests indicate that the volume incentive does not change the model structures. It means that the effect of volume incentive is not statistically significant. Consequently, the test results conclude the effect of volume incentive on transshipment cargo is not significant although the volume of transshipment cargo is increased to some extent by volume incentive. Considering the magnitude of BPA's expenditure, we doubt the effectiveness of volume incentive. This study, therefore, encourages the port authority to research a more efficient way to induce transshipment cargo rather than focusing on only volume incentives.