Master in Transport and Maritime Management Master in Transport and Maritime Management Master in Transport and Maritime Management Master in Transport and Maritime Management. Ki- - -Chan, Nam - Chan, Nam Chan, Nam Chan, Nam Thesis supervisor at the University of Antwerp. Institute of Transport and Maritime Management Institute of Transport and Maritime Management Institute of Transport and Maritime Management Institute of Transport and Maritime Management.
Dissertation submitted to obtain the degree of Master in Transport and Maritime Management.
Introduction
The growth rate of container handling volume at the port of Busan has been decreasing every year since 2002. Several European ports are attracting companies with high value-added processes to cope with this situation; this should be adopted as one of the measures for Busan Port. So, it is urgent to predict the future position of Busan port in the Far East and then make appropriate strategies to survive as a major port in the Far East and add high value.
Finally, from previous studies, Chapter 5 shows the prospects for major ports and the derived marketing strategy for Busan Port.
The change in the Far East
- The progress and prospects of container volume in the world
- The change of economy in the Far East
- The change of logistics in the Far East
- Change of shipping and port environment
The economy of the Far East mainly consists of Korea, China and Japan. These countries are one of the most dynamic countries in the world and will continue to do so in the future. The average container volume rate has increased by 5-6% over the last 10 years, and the Far East by 10-12%. The countries of the Far East are gradually becoming more industrialized and are already considered one of the three major trading markets in the world.
This project threatens the main strategy of the Korean port to become the logistics center of Far East Asia, attracting Chinese transshipment cargo.
Competitive analysis among Far East ports
Present situation
- Ports of China
- Port of Shanghai
- Port of Qingdao
- Ports of Japan
- Ports of Taiwan
- Ports of Korea
Port of Shanghai The total length of Shanghai's quays is 14 km, and 12 terminals with 98 quays are located along them. This plan started in 2002 and it will solve the two main problems of the current port. The Port of Qingdao is located in the Yellow River Basin and on the Western Pacific Rim, and is an important hub for international trade and maritime transport in China.
Qingdao Port consists of three port areas: the Old Port Area, the Huangdao Oil Port Area and the New Qianwan Port. Although the Port of Kobe was previously a typical container port, it occupied 70% of the outport merchant ships entering the port of Japan, ranking 6th to 7th in the world with 2,710,000 TEU in 1994 as transit quantity. Now Japan's ports are facing declining cargo volumes and inefficiency of port facilities. Moreover, Japanese cargo handled at Busan Port is increasing due to.
The Port of Kaohsiung consistently occupies the position with the sixth largest container handling volume in the world, due to the increase in the amount of transshipment cargo in addition to the posts in Taiwan itself, based on significantly smaller companies. Currently, the Taiwan government plans to formulate a strategy to develop Taiwan as an "operation center in the Asia-Pacific region" and will push Kaohsiung's rear port into the main port area. Located in the southeastern region of the Korean Peninsula, Busan Port serves as a gateway connecting the Pacific Rim to the continent of Asia.
The Port of Busan is the fifth largest container port in the world in 2004 by container throughput. The Port of Busan handled 11.38 million TEUs in 2004, which is twice its capacity.
Competitive analysis
- Port Infrastructure
- Port throughput
- Logistics Park
- Port cost
- The service of Port
Qingdao Port has old facilities and has built two modern areas with advanced facilities to increase handling capacity. The Port of Kaohsiung uses 27 berths and another 23 berths are under construction. This will be completed in 2011. The Port of Tokyo has a total of 15 berths and consists of the container terminals Oi, Aomi and Shinagawa.
The Port of Busan handled about 11 million TEUs in 2004, making it the world's fifth largest, second only to Hong Kong, Singapore, Shanghai and Shenzhen. The Port of Busan comes down in the ranking after 2001, but the Port of Shanghai overtook Busan in 2002 and is now the third largest port in the world in terms of throughput volume. Shanghai handled about 11 million TEU and registered the third largest container port in the world in 2004.
Port of Qingdao's container throughput reached 5.139 million TEU, which has taken the first largest container port among all ports in North China. And Port of Tokyo registered 7.3% of the growth rate, which is the lowest figure among the competitors. Busan, compared to the other competitors in the Far East is deficient in such projects.
Based on Busan port, Shanghai port cost is cheaper than Busan, but Kaohsiung and Tokyo are more expensive than Busan. World Bank data from 2001 shows the level of service level of port services.
Some Cases in European Ports and Asian port
Port of Rotterdam
There are some key factors in the port of Rotterdam becoming a hub port in Europe. To maximize the benefits of mainport Rotterdam for shippers and the container transport industry, the Port of Rotterdam offers specialized distribution areas known as Distriparks. Three Distriparks such as Eemhaven, Botlek and Maasvlakte have been created in the port area, each with specific characteristics to meet the needs of the companies established there.
Distriparks are advanced logistics parks with comprehensive capabilities for distribution business in a single location; location near container terminals and multimodal transport facilities using the latest information and communication technology. Companies located in distriparks are engaged in various types of activities and services, such as forwarding, warehousing and distribution, value-added activities and customs representation. Goods destined for the hinterland can leave the port by river, rail, road, pipeline or sea.
In the case of road, it is directly connected with England to Hungary and Scandinavia peninsula. In addition, the rail network is connected daily to almost main industrial areas such as Moscow, Prague and Milan. By reducing the load on the road and other land-based transport facilities, reducing costs, stimulating the economy of other network ports, the short sea offers endless possibilities.
The Rotterdam Short Sea Terminal is the main location close to the shore where sea connections arrive. More and more companies are convinced of the advantages of short sea shipping and feeder shipping.
Port of Singapore
So there are almost no refineries in the world, and the bunker price in Singapore became the standard in Asia. The main logistics activities associated with the Port of Singapore are carried out in the areas indicated above, which are collectively known as the Distribelt. Now, the Port is building 3 more terminals, named Pasir Panjang Terminal to handle the expected future handling volume.
Outlook for major ports in the Far East and some marketing strategies for the Port of Busan. By Chapter 3, we can predict the Far East hub port in the near future through comparative analysis, and this analysis also shows us the current competitive position of Busan Port. And in Chapter 4, we derive some marketing strategy for Busan Port to survive as a major port in the Far East and add high value.
Now, ports in the Far East fight to become the hub port in the region. So, compared to other competitors in the Far East, Busan is deficient in logistics park development and operation. As a result, after the completion of the new Yangsan port, the port of Shanghai can be the central port in the Far East.
Based on the results of forecasting the future situation among ports in the Far East and research on advanced ports in the world, we should now derive proper strategies for the port of Busan. If the port cannot induce international logistics companies, they have to raise logistics companies that are based in the country. When we searched in the previous cheaper, we found some strategies in some developed ports in Europe and Asia.
Korea Ministry of Marine Affairs and Fisheries, Dec. 1997, The Direction of Port Development Policy in the United Korea.
Prospects for major ports in the Far East and some marketing
Prospects for major ports in Far East
The some marketing strategies for Busan port
- A strategy to attract big shipping companies
- Raising ports related industries
- Attracting transshipment cargo and multilateral market
As we have seen, shipping companies are increasing the size of their ships and reducing port calls to pursue economies of scale. In the case of Busan Port, increased direct calls to China are causing shipping companies to skip the port call. When the shipping companies change the route, it is very difficult to get it back, so it is very important that the shipping companies do not leave.
However, Busan Port has some problems with the depth of the port and a problem to retain their supply service companies. Global companies' product bases are spread around the world for their goals; this trend will create needs of processing circulation for ports. As you can see in Fig.5-1, Busan port has changed from its simple way to handling volume with value added business.
Busan Port should attract Korean logistics companies; HanJin, DaeHan, Kukbo and CJ-GLS, as well as foreign major companies. According to the data of Busan Port Authority, China is now the main trading country of Busan Port; Dalian,. Due to expensive domestic transportation costs in Japan, it is easier for shipping companies to bring their shipment by sea.
The total amount of shipping to Japan was 30% of the country's total shipping and is increasing every quarter. So it is important to meet the needs of shipping companies and make it more active.
Conclusion
And the second is what influences and drives a global logistics company in a port's logistics park. The third strategy is to attract the transport and multilateral market. Therefore we need more efforts for the Japanese market, such as expansion of the road area and service frequency. Japanese shippers and companies are using Busan more because it has proven to be cheaper to ship goods through Busan than to make direct calls to Japanese mainland ports.
From a detailed and correct data it will allow us to gain a quantified insight into the complexity of and interaction between various links in the struggling situation. Estimate of the throughput of Korean ports, March 30, 2005, Saemangeum Newport is not included, Yon-hap news (http://www.yonhapnews.co.kr). Gwangyang Bay Area Free Economic Zone Authority, 2004, Expansion of Northeast Asian Economic Scope and Crisis of Korean Economy, Gwangyang.
