• 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.

• Journal of Korea Port Economic Association
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• v.21 no.4
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• pp.255-274
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• 2005

To acquire a port traffic, governments in North-East Asia have intensively invested port development. Furthermore, the major shipping company directly make a call at northern chinese ports like Qingdao, Dalian and Tianjin. Those changes of port environment will have a considerable effect on a port traffic in Korea. In order to prepare against those changes, it is necessary to estimate a port traffic in Korea A port traffic in Korea is estimated by the use of explanation variables like GDP of Korea, real effective exchange rate, world economic performances and the trade in China, et al. When GDP in Korea goes up 1%, it is estimated that container port traffic of all ports and Pusan Port is upward $1.0{\sim}1.2%$ and $0.8{\sim}0.9%$ respectively. When the trade in China goes up 1%, it is estimated that Container transshipment is upward $1.6{\sim}1.7%$ approximately.

• Journal of Korea Port Economic Association
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• v.21 no.3
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• pp.61-81
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• 2005

China has increased 10 percent every year since 1978. In particular, development and growth of Chinese ports make a remarkable in that the marine and coastal transportation handles the 90 percent of export-import cargo. This growth is beginning to threaten Korea's ports which are striving to become the hub of Northeast Asia logistics. Furthermore, the hub strategy of Northeast Asia is closely related to transshipment cargo invitation. The results of documents research indicate Busan and Gwangyang ports play an important role as an intermediate stopover between China and America. The ways to achieve transshipment cargo invitation are the construction of transshipment system based on the supply chain between korea and china, the maximization of trading volumes creation, equipment of ports infrastructure, and the constructions of the rail, road, coastal transportation infrastructures.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• v.1
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• pp.309-314
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• 2006

The amount of transshipment cargoes had been increased in Korea ports due to the rapid Chinese economic growth and the lack of facilities in Chinese ports. Recently, this increasing rate of transshipment cargoes in Korean ports is declining because Shanghai port is developing and establishing direct calls and shipping lines to China. Therefore, it is considered a big obstacle for Busan port to be a hub port. Due to that fact, an innovative development of domestic ports is necessary in order to overcome this obstacle. This paper analyzes the cargo O/D between Busan port and Japanese ports, and logistics costs are analyzed when Japanese cargoes are transshipped in Busan port.

• Journal of Navigation and Port Research
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• v.28 no.4
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• pp.277-284
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• 2004

This paper tries to draw some implications for Korean seaports in terms of management and development of ports with respect to attracting more transshipment container cargoes. For this the results of the Origin-Destination(O-D) analysis between major Korean ports and top 20 Chinese ports were presented. They also contained the O-D analysis between Chinese major ports and their inland hinterlands.

• Journal of Korea Port Economic Association
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• v.21 no.1
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• pp.23-44
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• 2005

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.

• Journal of Korean Society of Transportation
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• v.20 no.7
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• pp.43-50
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• 2002

Competition to attract the increasing container cargoes of North China and the West Japan in North-East Asia region is fairly intensed in recent days between the main ports of Korea, China, and Japan. Inducing a new container cargo make those countries possible to invest enormous fund to mordernize its port facilities, as well as to improve efficiency in Port operation and management. In this situation, Strategy to attract transshipment cargoes is of the immediate necessity, This study, therefore, aims to establish the feasible strategies to attract transshipment container cargoes in the North-East Asian region by empirical analysis, he major output of the research is as follows : First, Busan Port to attract transshipment cargoes is required to adjust port tariff and free storage period with flexibility for liner shipping companies and freight forwarder. Second, Price-Demand function of Busan port between main competitive ports in North-East Asian region that is derived from strategies to attract transshipment cargoes, helps marketing manager to fix scientifically port price as understanding the change of demand quantity.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2006.10a
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• pp.203-212
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• 2006

The purpose of this research is to suggest the activation plan of Busan port. In the past years, Busan port enjoyed the golden days because of the China's rapid economic growth. But China's continuous development of ports, the trend of increasing container ship size and increasing direct call to China are coming threats to Busan port. So Korea needs to revise the 'Northeast Logistics Hub' strategy because it is considered that Korea ports continuously will handle China's transshipment cargoes. But now China's transshipment cargo share has decreased by direct call to China ports. It means that China has a lot of its local cargoes, so many ship companies change liner service route to handle China cargoes except Bussan ports although Busan port is included in the main trunk route. In the future, Bussan port will not be able to compete again about throughput with China ports if Busan port's transshipment cargo share decreases. So we must find out and develop Busan port's strength which is the competitive edge. By good luck, Busan port has a few opportunities such as the developed feeder network service and geographical advantages. Busan port has many feeder network service like spider's web in any northeast countries so we can suggest that if Japanese shippers use Busan port to distribute their cargoes to Japanese local areas, its transport costs are cheaper than when they use Japan's main ports. In this paper analyzed side of cost when they use Bussan port like hub to distribute their cargo to their local areas. Because most companies tried to reduce the total cost about logistics. Finally, this paper suggests when northeast shippers(China, Japan) use Bussan port which is more economical than their local main ports.

• Journal of Korea Port Economic Association
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• v.26 no.3
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• pp.175-197
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• 2010

The purpose of this paper is to develop a new strategy from a different angle to become a preferred transshipment hub for sustainable growth. This study would derive new competitive factors through the case study on a global carrier 'A' who shows constant growth in transshipment via Busan and the questionnaire survey was conducted. As to analysis results by matrix, Busan Port needs to strengthen its competitiveness against North China ports due to less local import/export cargo volume and less government support while North China ports continue to be developed with incremental direct calling and government's flexible cabotage rule.

• Journal of Navigation and Port Research
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• v.27 no.2
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• pp.179-184
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• 2003

In order to mitigate the overcapacity of Busan port, Busan new port has been developed as transshipment port which is capable of handling 8,000 TEU containership. Generally, design of transshipment port has to reflect the capacity of feeder because both mother vessels and feeders enter the planned port at the same time. However, the existing plan of Busan new port capacity needs to be reexamined since the adopted capacity of each berth at new port, 300,000 TEU, does not seem to be enough to handle both mother vessels and feeders. Therefore, in this study we calculated the required number of berth and berth length by considering cargo handling capacity in terms of the ship size and this study makes some implications in relation with the terminal development plan.