• 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 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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• 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.27 no.2
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• pp.183-194
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• 2011

Countries in the world make a strategic effort to develop their own ports into hub ports and lure transshipment cargoes. Likewise, the Busan Port tries to become a container hub port in Northeast Asia, but there is lately a gradual decline in the number of transshipment cargoes. The purpose of this study was to examine the influential factors of port transshipment traffic in an effort to identify the determinants of transshipments in the Busan Port. In existing studies, harbor infrastructure, maritime transshipment cost, port cost and port service were primarily presented as the determinants of transshipment traffic after surveys were conducted by experts. In this study, the transshipment traffic in the Busan Port was selected as a dependent variable, and the container traffic and transshipment traffic of ports in adjacent countries and each country's amount of trade and economic growth rate were selected as explanatory variables to analyze what factors determined the transshipment traffic in the port.

• 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.1
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• pp.20-42
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• 2010

This study is aimed at evaluating transshipment competitiveness of Incheon New Port which will open in 2013. For this reason, we used Conjoint Analysis(CA) for a methodology of this research as CA had been frequently adopted for empirical analysis of new container terminal in previous studies. We have provided the questionnaires to the stake holders of the port such as experts in Port Authority(PA), logistics companies, and terminal operators. The result showed that transshipment competitiveness of Incheon New Port was subordinate to transshipment costs and port costs of Busan and Shanghai. Overall, we hope this study could help draw up the policies on a New Port that will attract transshipment cargoes and set up marketing plan for an early settlement.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
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• 2002.11a
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• pp.45-51
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• 2002

As the circumstances surrounding world ports have changed rapidly, Port competition to attract more cargoes is increasing fiercely. Especially, fierce competition to attract the increasing container cargoes has cause main container ports on only to invest enormous fund to modernize its port facilities but also to improve efficiency in port operation and management. But, it is hard to build differentiation strategy with general port operation according to investing continuously enormous fund into main ports. In this situation, port marketing like 4P mix is of the immediate necessity and in this point, this paper estimated Brand Equity that have risen the core ability of marketing strategy, to transshipment port using Conjoint Analysis. In this analysis result, this paper shows that the brand equity of port significantly devoted to selection of transshipment port. This means that brand of port can attract considerable transshipment cargo. Then it have to induce customer loyalty for this brand extension.

• Journal of Korean Port Research
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• v.13 no.1
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• pp.1-10
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• 1999

Port competition is generally classified into two type of inter-domestic ports and intermational ports and the latter is measured how to secure the function of intermediacy for foreign cargoes among competing parts. In the Northeast Asia top 20 world container ports such as Pusan, Kobe, Yokohama and Kaohsiung are struggling to induce transshipment containers generated in the North China region. This paper aims to analyze and evaluate the competitive factors of the said ports such as port site facilities expenses service level and flexibility of management and operations and suggest the feasible strategies that the Pusan Port to be viable transshipment center in the region. The evaluation is attempted twice. First attempt is evaluated by present conditions of each port and second attempt by upgraded conditions of evaluation value such as port service level and flexibility of port management and operations resulted from the implementation of the ON-DOCK service system. The results of evaluation are as follows; (1) Port competitiveness of first evaluation is ranked in Kobe=Kaohsiung >Pusan>Yokohama. (2) Second evaluation is resulted in Kobe> Pusan= Kaohsiung>Yokohama. According to this results the competitiveness edge of the Pusan Port is able to strengthen by implementation of the ON-DOCk system.

• Journal of Korean Port Research
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• v.12 no.2
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• pp.195-206
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• 1998

By the rapid expansion of containerization and intermodal transportation in international shipping since the 1970's, the larger containerships have emerged and concentrated their calls at a limited number of ports. Moreover, large-scale container terminals have been built to accommodate the ever-larger containerships, and the mordernization of terminal facilities and many developments in information technology etc. have been brought out. Thus, unlimited competition has been imposed on every terminal with neighbouring ports in Japan, Singapore, Hongkong and Taiwan etc. The purpose of this study is to suggest how the container terminal operators cope with unlimited competition between local or foreign terminals. The results are suggested as follows: First, transshipment cargoes, which the added value is high, is to be induced. Second, the function of storage is given on On-Dock Yard. Third, Berth Pool Operation System is to be introduced, especially in Gamman Container Terminal and Kwangyang Container Terminal. Fourth, the cargo handling charges is to be decided by terminal operator.