• Journal of Korea Port Economic Association
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• v.29 no.1
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• pp.23-45
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• 2013

This paper aims to identify the problems of incentives and find a solution to them by empirically analyzing the port incentives and the development of cargo volume. The current method of paying performance incentives and cargo-increase incentives makes it is possible for shipping companies to get the maximum incentives just by regulating cargo volumes without increasing them. Since the processing volume of transshipment cargo of the Busan port is over the volume eligible for the maximum incentive determined by the tie-up of shipping companies, the transshipment cargo can decrease. The incentive of the Busan port based on the cargo record and increase does not affect the increase of transshipment cargo, only to suffer a loss, and thus a new incentive system is needed that does not allow shipping companies to regulate cargo volumes. Based on the result of this study, We have to apply the even-handed incentive rule which pays the incentive for the cargo volume of the pertinent year with the unit price per 1 TEU to avoid the chicken game among the ports.

• Journal of Navigation and Port Research
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• v.45 no.3
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• pp.117-129
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• 2021

This study intends to verify the effectiveness of incentive schemes at Busan Port' aimed at promoting transshipment cargo. The current incentive schemes of Busan port intended to increase the T/S cargo volume have been disputed constantly. It is imperative, therefore, to restructure the system in accordance with the planned strategy. In this study, in order to ensure objectivity of the incentive schemes, all the parties (carriers, terminal operators and Port Authority) with a direct interest are answered and analyzed using the AHP methodology. Effectiveness is the top priority in the analysis of beneficiary validity of incentive schemes, when incentives are provided to Global overseas carriers compared with Global national carriers, IntraAsia carriers and Terminal operators. In the analysis of incentive schemes, direct cash support corresponding to the quantity of the T/S cargo had the highest effectiveness compared with exemption of port dues, cost compensation, port infrastructure support and subsidy for the service opening. The study results, therefore, reference the Port Authority when restructuring the schemes. This study has been conducted only focusing on the Busan port; however, the findings may have significant implications for overseas Port Authorities intending to implement incentive systems to promote cargo volumes similar to those at Busan port.

• Journal of Korea Port Economic Association
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• v.32 no.3
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• pp.139-154
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• 2016

The port incentive scheme currently implemented in various Korean ports is used as a marketing tool to increase price competitiveness. Typically, ports implement piecemeal imitation strategies to enhance their competitiveness, rather than a precisely designed system. A precise analysis of the effectiveness of a port's system and scheme redesign are lacking because budget allocation is done without input from customers and freight groups. This study models the incentives faced by ports using a linear programming model. We use the Gwangyang port as the base case. Our analysis of the Gwangyang port reveals that there are insufficient incentives implemented when a traditional qualitative analysis is used. We also identify any excess, deficiency, or absence of the incentive effect for each type of customer and freight group. We find the overall budget of the incentive scheme to be more rational when ports allocate funds to minimize port mileage, and allocate 61.77 percent and 38.23 percent of the budget on existing and new (or increased) cargo inventory, respectively. Future studies can build on our work by further considering basic inputs, and by adding a system to estimate the input data of our model to identify constraints and thus provide a more accurate incentive scheme.

• Journal of Korea Port Economic Association
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• v.30 no.4
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• pp.219-254
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• 2014

Due to the recent development of globalization and supply chain management, growth of international trade has led to increasing cargo volume around the world. Since maritime logistics environments have changed, increased container ship size, improvement of harbor equipment, global port operation and rapid technological development have had an significant effects on shipping and port industry, which is contributing to competitiveness of port. Since a larger volume of port throughputs are generally regarded as an indicator of the more competitive port, inefficient port operation could reduce its competitiveness. On the other hand, high efficient ports could increase their competitive power while increasing cargo volume. This study aims at comparing competitiveness of the ports in the Northeast Asia by investigating changes of container throughputs and evaluating efficiency performance of ports. Shift-Share analysis and Data Envelopment Analysis(DEA) have been conducted with 21 Northeast Asian ports and then separated them into 4 groups for comparative analysis to identify competitive position of each port. The results of this study show that Incheon and Gwangyang port have been decreased container cargo volume, while volume of Busan port would increase by means of active marketing, various route development and incentive policy for the port.

• Journal of Korea Port Economic Association
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• v.38 no.4
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• pp.199-214
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• 2022

A relative important analysis was conducted to determine what factors are required for port selection in Mokpo New Port and what needs to be addressed first in order to expand automobile and steel cargo handling. The port selection factors of Mokpo New Port were classified into 4 major and 13 intermediate categories, and AHP analysis was used. As a result, items such as 'port facilities', 'accessibility to international ports', 'port facility usage fees', and 'connectivity with neighboring cities/ports' were evaluated as important. The respondent groups were divided into shipowner and shipper, port operator and stevedore, and public official, and an analysis of variance (ANOVA) was conducted to verify if there was a difference in perception between the groups. As a result, shipowner and shipper, port operator and stevedore were similar, but there was a difference from public official group. Shipowner and shipper, port operator and stevedore with similar response characteristics were classified into the 'port practitioner' group, and public official were classified into the 'port policy maker' group, and the difference in perception between the group was tested. Therefore, there were differences in some major category items, and even in the intermediate category items such as 'possession of adjacent hinterland industrial complex', 'cargo equipment', '24-hour port operation', 'inland transportation cost', 'accessibility to international ports', 'marketing and incentives' with statistical. In other words, the 'port practitioner' group evaluated items that can increase cargo creation and handling productivity as important whereas the 'port policy maker' group considers port development and policies such as port infrastructure, connectivity with other ports, and incentive support items are more important.

• Journal of the Korean Society of Marine Environment & Safety
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• v.19 no.4
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• pp.366-374
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• 2013

Maritime transportation circumstance is changing rapidly in accordance with the increase of cargo volume between countries and increase of marine leisure activities by improvement of quality of life. And the circumstance for ship operation is also changing due to aging of seafarers and increasing of foreign seafarers. To cope with such changes in maritime environment well, it requires higher safety management skills from shipping companies, the main subject in charge of the safety matter. In this paper, we analyzed domestic and foreign similar system, and then applied imitation strategies for introduction of an unific evaluation and management system that was consist of marine accidents, port state control, ISM Code and so on from shipping companies. We defined that the imitation industry and system are converted accident ration of construction industry and traffic safety excellence company of road transportation, and then extracted relevant law, evaluation index, incentive system as a imitation subject. We also proposed scheme that introduction of basis law, and evaluation tool with marine accidents ratio, port state control & ism code result, and incentives such as immunity of safety inspection or reduction of commission for introduction of company's safety management level evaluation system. Finally, we proposed the imitation timing and plan in stages for system's sustainable development through the prompt introduction and continuous enforcement.