korea port governance system and new challenge issues

Korea Port Governance Korea Port Governance System System

And New Challenge Issues And New Challenge Issues

Prof. Hee Seok Prof. Hee Seok BangBangAssistant. Jung Ho Na Dong Joon KangChung Ang UniversityChung Ang University

ICHCA ConferenceICHCA ConferenceICHCA ConferenceICHCA Conference

Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues

ⅠⅠⅠⅠ Review of World Economy & Korea Port ThroughputReview of World Economy & Korea Port ThroughputReview of World Economy & Korea Port ThroughputReview of World Economy & Korea Port Throughput

ⅡⅡⅡⅡ Factors to be considered for Port Policy & ManagementFactors to be considered for Port Policy & ManagementFactors to be considered for Port Policy & ManagementFactors to be considered for Port Policy & Management

ⅢⅢⅢⅢ Classification of Korean Port & Governing BodyClassification of Korean Port & Governing BodyClassification of Korean Port & Governing BodyClassification of Korean Port & Governing Body

ⅣⅣⅣⅣ Container Port Development in KoreaContainer Port Development in KoreaContainer Port Development in KoreaContainer Port Development in Korea

ⅤⅤⅤⅤ Developing FEZ & FTZ linked with PortDeveloping FEZ & FTZ linked with PortDeveloping FEZ & FTZ linked with PortDeveloping FEZ & FTZ linked with Port

ⅥⅥⅥⅥ Issues to be DiscussedIssues to be DiscussedIssues to be DiscussedIssues to be Discussed

Table of ContentsTable of Contents


11 Review of World EconomyReview of World Economy

ⅠⅠ. Review of World Economy & Korea Port . Review of World Economy & Korea Port ThroughputThroughput

Trade Scale in KoreaTrade Scale in Korea (100million $, %)(100million $, %)

[ 100millionR/T ]

Year 2000 2001 2002 2003 2004 2005 2006

Total 704 751 776 812 849 874 927

Trade Cargo Volume in KoreaTrade Cargo Volume in Korea

　 2001 2002 2003 2004 2005 2006 2007

Export 1504.4 1624.7 1938.2 2538.5 2844.2 3254.7 3714.9

Import 1411 1521.3 1788.3 2244.6 2612.4 3093.8 3568.5


Country 2005 % 2006 %

KOREA

JAPAN

CHINA

9.3

8.0

3.6

35.5

30.5

13.7

10.6

9.1

4.5

34.6

29.7

14.7

ASIA 21.9 83.6 25.4 83.0

EUROPE 4.0 15.3 4.9 16.0

Total 26.2 100.0 30.6 100.0

World Shipbuilding

Resource : Clarkson, World Shipyard Monitor, 2007

(100million CGT, %)


Source: WTO, World Trade Report(2005), CIA, The World Factbook(2005)

SectionPopulatio

n(million)

Dimensio

n(ml.sq.km

GDP(billion $)

GDP per

head ($)

Export(billion

$)

Import(billion $)

Foreign Exchange Holding

(billion $)

Korea 47.7 99,585 6,807 14,122 257.7 219.5 198.1

Japan 128 378,000 46,639 36,522 540.3 407.3 824.2

China 1,304 9,561,000 16,007 1,217 593.3 538.9 609.9

Hong Kong

7 1,098 1,646 23,349 267.5 279.2 123.5

Taiwan 23 36,000 3,053 13,569 173.1 156.6 241.7

Sub-total 1,510 10,075 7,415 17,755 1,831 1,602 1,997

Total 6,446 133,567 55,500 8,800 8.880 9,215 -

(%) 23.4 7.5 13.3 - 21 17.4 -

Economic Indicator of N. E. AsiaEconomic Indicator of N. E. Asia


22 Korea Port ThroughputKorea Port Throughput

2003 2004 2005 2006 2007

Total 951,133,773 956,149,803 984,534,280 1,036,843,244 1,093,479,551

Busan 187,184,537 215,032,399 217,217,227 229,938,598 243,564,954243,564,954

Incheon 127,071,396 113,654,061 123,453,366 129,566,335 138,139,357138,139,357

Pyeongtaek 43,978,940 40,808,436 42,514,023 44,234,861 48,092,932

Donghae 19,948,173 19,897,081 19,923,307 21,353,215 22,168,219

Daesan 41,410,793 41,163,769 44,720,057 52,649,401 53,515,961

Gunsan 15,690,899 16,560,763 17,077,882 17,502,072 17,685,782

Mokpo 6,944,923 6,262,041 7,594,153 8,978,754 14,202,826

Yeosu 3,780,714 1,676,578 2,587,211 2,788,767 8,344,082

Gwangyang 165,027,006 170,486,999 177,482,959 195,069,156 198,189,085198,189,085

Pohang 54,123,508 56,297,352 54,691,880 54,970,612 61,875,145

Masan 11,484,938 12,490,080 12,997,990 11,907,024 13,193,314

Ulsan 146,141,817 160,214,236 162,413,761 165,717,395 168,651,699168,651,699

Jeju 2,788,145 2,304,668 2,245,345 2,214,292 2,071,360

Others 125,557,984 99,301,340 99,615,119 99,952,762 103,784,835

Unit : R/T

Source ; http://www.index.go.kr


2007 2011 2015 2020Annual growth rate

‘07-’11 ’11-’15 ’15-’20

Import 308,558 371,465 423,499 492,427 4.7 3.3 3.1

Export 168,062 200,359 260,359 332,097 4.5 6.8 5.0

Coastal

148,195 166,873 175,355 184,234 3.0 1.2 1.0

T/S 120,648 159,589 205,929 275,361 7.2 6.6 6.0

Total 745,462 898,2871,065,1

421,284,1

194.8 4.4 3.8

Traffic ForecastTraffic Forecast Unit : 000 R/T

Source : KMI 2008, Crude Oil Traffic is excluded.

Traffic Forecast of ContainerTraffic Forecast of Container

2003 2011 2015 2020

Import & Export 8,182 14,933 19,232 24,161

T/S 4,599 11,214 15,090 21,344

Coastal 405 952 1,342 1,906

Total 13,186 27,099 35,664 47,411

Source : MOLTMA, Ocean Shipping Consultant

Unit : 000 TEU


ⅡⅡ. Factors to be Considered for Port Policy & . Factors to be Considered for Port Policy & ManagementManagement

Main Line / Feeder ServiceMain Line / Feeder Service

Changing Client DemandsChanging Client Demands

Alliance, M&AAlliance, M&A

Increasing ConcentrationIncreasing Concentration

Emergence of BIG SHIPEmergence of BIG SHIP

11 Changes in Container Changes in Container ShippingShipping


Proposed Size of Big ShipsProposed Size of Big Ships

Ship TypeShip TypeCapaciCapaci

tyty

(TEU)(TEU)

LengthLength

(m)(m)DraftDraft

(m)(m)BeamBeam

(m)(m)Rows onRows on

BeamBeam

8,800TEU 8,800TEU

ClassClass

8,800 347 14.0 45.3 17

12,000TEU 12,000TEU

ClassClass

12,000 350 14.5 57 17

Suez-MaxSuez-Max 12,000 400 17.04 50 25

15,000 TEU 15,000 TEU

ClassClass

15,000 400 14-15 69 28

Malacca-MaxMalacca-Max 18,154 400 21.0 60 -

Source : Lloyd ListSource : Lloyd List

Note : Han-Jin Shipping Line ordered 13,000TEU ShipNote : Han-Jin Shipping Line ordered 13,000TEU Ship (5 Ships operation in 2010, 4 Ships operation in 2011)(5 Ships operation in 2010, 4 Ships operation in 2011)


Pyeongtaek University

2008200845.645.634934910,00010,000Hanjin ShippingHanjin Shipping

20082008525238338312,00012,000Samsung ShipbuildingSamsung Shipbuilding

2006200645.345.33353359,6009,600Xin Los AngelesXin Los Angeles

2006200642.542.53483489,4159,415CMA CGM FidelioCMA CGM Fidelio

2006200642.542.53493499,4499,449Cosco NingboCosco Ningbo

200620062222565639539511,00011,000Emma MaerskEmma Maersk

Delivery Delivery

DateDate

RowRowWidth(m)Width(m)Length(Length(

m)m)

Capacity(TECapacity(TE

U)U)

Name of VesselName of Vessel

Order and Delivery of Super Container Ships Order and Delivery of Super Container Ships ––Emma Maersk Emma Maersk


Diversification/Enhancement of servicesDiversification/Enhancement of services

• Intermodal services

• Supply Chain Management

• Warehousing and Distribution

• Tailored pricing packages

• Global service agreements

• Advanced cargo care technologies

• Container tracking facilities

• E-commerce initiatives

22 Changing Client DemandsChanging Client Demands


33 Integration of the Logistics Integration of the Logistics ProvidersProviders

1) Expend 3PL Business(Lead Logistics 1) Expend 3PL Business(Lead Logistics

Providers : LLPs)Providers : LLPs)2) 4PL’s Structure2) 4PL’s Structure

4PL4PL

3PL3PL 3PL3PL3PL3PL


3) 4PL’s Functions ; 3) 4PL’s Functions ; - supply-chain engineering- business process re-engineering- IT services and systems capable of connecting to

customers and other supply-chain partners(including design of an open systems framework, build, implementation and run activities)

- sales and operations planning- call centres- distribution management- procurement- customer support- invoice management- other back office services such as

administration, human resource management, finance and legal support


4) Four key components of 4PL4) Four key components of 4PL

4PL4PL

FFIINNAANNCCEE

Architect/Architect/integratorintegrator

Supply-ChainSupply-ChainInfo-mediaryInfo-mediary

Control RoomControl Room(intelligence)(intelligence)

ResourceResourceProvidersProviders

-Supply-chain visionarySupply-chain visionary-Multiple customer relationship-Multiple customer relationship-Supply chain re-engineering-Supply chain re-engineering-Project management-Project management-Service integrator-Service integrator-Continuous innovation-Continuous innovation

-Experienced logisticiansExperienced logisticians-Optimization engines-Optimization engines-Decision support-Decision support-Neutral positioning-Neutral positioning-Continuous improvement-Continuous improvement

-IT system integrationIT system integration-IT infrastructure provision-IT infrastructure provision-Real-time data tracking-Real-time data tracking-Convert data to information-Convert data to information-Provide info to point of need-Provide info to point of need-Technical support-Technical support

-TransportationTransportation-Warehousing-Warehousing-Manufacturing(Outsourcing)-Manufacturing(Outsourcing)-Procurement Service-Procurement Service


5) Suggested 4PL Model5) Suggested 4PL Model

Responsibilities

4PLModel

Traditional Model

Supply-chain management layers Key components

4PL

Consultants/

BusinessStrategy setting & planning

Direction, business model, objectives

Business

Tactical planningDemand, supply & inventory planning

Operational schedulingCustomer order mgnt, distribution scheduling

3PL ExecutionInbound, warehousing

transportation, shipping


Share of top 20 container lines

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1988 1990 1992 1994 1996 1998 2000 2002 2004

Year

Source: CI YearbookSource: CI Yearbook

44 Increasing ConcentrationIncreasing Concentration


As of August 2007,As of August 2007,

• Maersk Lines controls 16.1% of the world’s active Maersk Lines controls 16.1% of the world’s active

container fleetcontainer fleet

• Top 3 carriers(Maersk Lines, MSC, CMA CGM) control Top 3 carriers(Maersk Lines, MSC, CMA CGM) control

33.5%33.5%

• Top 5 carriers control 43.3%Top 5 carriers control 43.3%




- Competitive Transshipment- Competitive Transshipment

- Carrier-driven Port Development- Carrier-driven Port Development

- Privatization & Commercialization- Privatization & Commercialization

- Mega hub Port- Mega hub Port

- Emergence of Asian Ports- Emergence of Asian Ports

- International Port Operators ; HPH, PSA, DP world- International Port Operators ; HPH, PSA, DP world

- Environmental pressure- Environmental pressure

- New Port Governance Body- New Port Governance Body

55 Changes in Container PortChanges in Container Port


Port Logistics ConceptPort Logistics Concept

- Treat Port as a Logistics System- Treat Port as a Logistics System

( Cuts Costs, Better Service to Global Client, Wider Global Coverage,( Cuts Costs, Better Service to Global Client, Wider Global Coverage,

Shorter Transit Time )Shorter Transit Time )

- Port Roles Changes in the FEZ, FTZ- Port Roles Changes in the FEZ, FTZ

- Value-Added activities increasing in Port Area- Value-Added activities increasing in Port Area

- Linkage with Global Logistics Provider- Linkage with Global Logistics Provider

( Global Carriers & Terminal Operators, Freight Forwarder )( Global Carriers & Terminal Operators, Freight Forwarder )

- Port & Logistics Hub Strategies Launched in the Asia & Europe- Port & Logistics Hub Strategies Launched in the Asia & Europe


ⅢⅢ. Classification of Korean Ports & Governing . Classification of Korean Ports & Governing BodyBody

* Fifty one Ports and Harbor exist in Korea under the Jurisdiction of the * Fifty one Ports and Harbor exist in Korea under the Jurisdiction of the Port Act as Following Trade.Port Act as Following Trade.

11 Classification of Ports in KoreaClassification of Ports in Korea

International trade Ports * Coastal Ports

Western Coast

Incheon, Pyeongtaek, Daesan, Taean, Boryeong, Janghang, Gunsan, Mokpo (8)

Yonggipo, Yeonpyungdo, Daecheon, Bi-in, Deaheuksando, Hongdo, Pengmok (7)

Southern Coast

Wando, Yeosu, Gwangyang, Jeju, Seoguipo, Samcheonpo, Tongyung, Gohyun, Okpo, Jangseungpo, Masan, Jinhae, Busan (13)

Shinma, Nokdongshin, Narodo, Geomundo, Hallim, Whasun, Sungsanpo, Aewol, Chuja, South Busan, Whaheungpo (11)

Eastern Coast

Ulsan, Pohang, Samcheok, Doughae, Mukho, Okgae, Sokcho (7)

Guryongpo, Wolpo, Hupo, Ulreung, Jumunjin (5)

Total 28 23

<Table> Classification of Ports in <Table> Classification of Ports in KoreaKorea

* The MOLTMA is responsible for the planning, construction, maintenance and management of ports * The MOLTMA is responsible for the planning, construction, maintenance and management of ports


1) Port of Busan1) Port of Busan

·· The port of Busan is situated on the southeast coast of the Korean peninsulaThe port of Busan is situated on the southeast coast of the Korean peninsula approximately 400km by expressway from the capital, Seoul.approximately 400km by expressway from the capital, Seoul.

·· Located in a highly industrialized area of Korea, Busan, the 2nd largest city Located in a highly industrialized area of Korea, Busan, the 2nd largest city in Korea with a population of 5 million, is the center for the export of in Korea with a population of 5 million, is the center for the export of manufactured goods and is a top ranked port in Korea in terms of traffic manufactured goods and is a top ranked port in Korea in terms of traffic volume and value.volume and value.

22 Major Ports in KoreaMajor Ports in Korea

2004 2005 2006 2007

General Cargo

215,032 217,217 229,939 230,304

Container 11,491 11,843 12,038 13,261

<Table> General Cargo & Container Traffic<Table> General Cargo & Container Traffic Unit : 000 Ton, 000 TEU

Source ; http://www.mltm.go.kr


2) Port of Incheon2) Port of Incheon

·· The port of Incheon, located on the mid-west coast of Korea, is the third The port of Incheon, located on the mid-west coast of Korea, is the third largest port next to Gwangyang.largest port next to Gwangyang.

·· It serves as the gateway to the metropolitan area of Seoul which is only It serves as the gateway to the metropolitan area of Seoul which is only 32km to the east along a highway.32km to the east along a highway.

·· The inner harbor of the port is controlled by a lock gate because of its The inner harbor of the port is controlled by a lock gate because of its location within 9m tidal wave range. location within 9m tidal wave range.

<Table> General Cargo & Container Traffi<Table> General Cargo & Container Traffic c Unit : 1,000 Ton·1,000 TEU

2004 2005 2006 2007

General Cargo 113,654 123,453 129,566 136,475

Container 934 1,148 1,373 1,664



3) Port of Ulsan3) Port of Ulsan

·· The port of Ulsan, located in the South-eastern coast Korea peninsulaThe port of Ulsan, located in the South-eastern coast Korea peninsula at about 40km to the north of Busan, was developed as an industrialat about 40km to the north of Busan, was developed as an industrial port in the 1960’s and 1970’s. port in the 1960’s and 1970’s.

·· Large scale petrochemical industries, a gigantic shipbuilding yard and Large scale petrochemical industries, a gigantic shipbuilding yard and an auto mobile factory of the Hyundai Industrial Group Were installed an auto mobile factory of the Hyundai Industrial Group Were installed in this area.in this area. <Table> General Cargo & Container Traffic<Table> General Cargo & Container Traffic Unit : 000 Ton, 000 TEU

2004 2005 2006 2007

General Cargo 160,214 162,414 165,717 168,272

Container 302,870 316,432 331,330 380



4) Port of Gwangyang4) Port of Gwangyang

·· The port of Gwangyang, located on the mid-southern coast, is a new industrial The port of Gwangyang, located on the mid-southern coast, is a new industrial port developed in the 1980’s.port developed in the 1980’s.

·· It has become the gateway to the bay area housing the Yeocheon Industrial It has become the gateway to the bay area housing the Yeocheon Industrial Complex of a large oil refinery, petrochemical factories, a gigantic Gwangyang Complex of a large oil refinery, petrochemical factories, a gigantic Gwangyang steel mill (POSCO) and related industries.steel mill (POSCO) and related industries.

·· The port of Gwangyang has the distinct advantage of not being surrounded The port of Gwangyang has the distinct advantage of not being surrounded by the agglomeration area of big cities, thus affording plenty of space for by the agglomeration area of big cities, thus affording plenty of space for further expansion.further expansion. <Table> General Cargo & Container Traffic <Table> General Cargo & Container Traffic Unit : 000 Ton, 000 TEUUnit : 000 Ton, 000 TEU

2004 2005 2006 2007

General Cargo 170,487 177,483 195,069 196,433

Container 1,321 1,441 1,751 1,756



5) Port of Pohang5) Port of Pohang

·· The port of Pohang, located at the southeastern coast of the Korean The port of Pohang, located at the southeastern coast of the Korean peninsula, has been one of the leading industrial ports.peninsula, has been one of the leading industrial ports.

·· It serves the POSCO (Pohang steel Mill Co.) and its related industrial It serves the POSCO (Pohang steel Mill Co.) and its related industrial complex in the hinterland of the portcomplex in the hinterland of the port

<Table> General Cargo & Container Traffic <Table> General Cargo & Container Traffic Unit : 000 Ton, 000 TEU

2004 2005 2006

General Cargo 160,214 162,414 165,717

Container 302,870 316,432 331,330



* In accordance with the restructuring of the government, the Ministry of Maritime * In accordance with the restructuring of the government, the Ministry of Maritime

Affairs and Fisheries (MOMAF) was inaugurated on August 8 1996, incorporating Affairs and Fisheries (MOMAF) was inaugurated on August 8 1996, incorporating

all the maritime related affairs into one super-agency including the Korea all the maritime related affairs into one super-agency including the Korea

Maritime and Port Administration (KMPA), the Maritime Accidents Inquiry Agency Maritime and Port Administration (KMPA), the Maritime Accidents Inquiry Agency

and Hydro graphic Bureau previously under the Ministry of Construction and and Hydro graphic Bureau previously under the Ministry of Construction and

Transportation (MOCT), Fisheries Administration previously under the Ministry of Transportation (MOCT), Fisheries Administration previously under the Ministry of

Agriculture and Fisheries, Maritime Police Administration under the Ministry of Agriculture and Fisheries, Maritime Police Administration under the Ministry of

Home Affairs and Marine Resources Development previously under the Ministry Home Affairs and Marine Resources Development previously under the Ministry

of Science and Technologyof Science and Technology

* At present, MOLTMA(Ministry of Land, Transport & Maritime Affairs) is the * At present, MOLTMA(Ministry of Land, Transport & Maritime Affairs) is the

Federal Government to control port plan & development since New GovernmentFederal Government to control port plan & development since New Government

was inaugurated in the early of 2008.was inaugurated in the early of 2008.

33 Port Planning and Developing Port Planning and Developing BodyBody


· · MOLTMAMOLTMA is the government Body to serve following port development & management. is the government Body to serve following port development & management. - long term and medium term port policy for future development

- establishment of port master plan

- establishment of technical standards for port planning, design and construction

- supervision of feasibility studies, surveys and detail design work for port development

- control of capital investment

- overall planning of port operations

- construction and maintenance of infrastructure (breakwater, seawall, quay-wall, lock gate)

- construction of transportation facilities connecting ports and hinterland

- planning & construction of logistics facilities and ICD

- formulation of basic plan on private investment on port facility project

- construction and installation of superstructure (pavements, operation, building, shed, gantry cranes)

- dredging and maintenance of access channels

- port tariffs

- installation and maintenance of navigation aids’ facilities (lighthouses, beacons)

- control of public water space within the port limits

- licensing port operation related companies (stevedore, tugboat, ship-supply etc)

- compilation, analysis and provision of port statistics


Summary of Port Related Organization in KoreaSummary of Port Related Organization in Korea

MOLTMA

11 11 BranchesBranches

BusanBusanIncheonIncheonUlsanUlsan

Public WaterPublic WaterManagementManagement

Public WaterPublic WaterManagementManagement

Yeosu, MasanYeosu, MasanDonghaeDonghae

Gunsan, DaesanGunsan, DaesanMokpo, PohangMokpo, Pohang

PyeongtaekPyeongtaek

Port ManagementPort ManagementTerminal LeaseTerminal Lease

Port ManagementPort ManagementTerminal LeaseTerminal Lease

TOCTOC

KL-NetKL-Net

Port EDIPort EDI

BPABPAIPAIPAUPAUPA

KCTAKCTA

TerminalTerminalManagementManagement

& Lease& Lease

TerminalTerminalManagementManagement

& Lease& Lease

Borrow & LeaseBorrow & LeaseTerminalTerminal

Borrow & LeaseBorrow & LeaseTerminalTerminal

TOCTOC Terminal OperatorTerminal Operator

InvestInvest LeaseLease


Preview of Korean Port Administration in HistoryPreview of Korean Port Administration in History

Year Organization Main Content

1976 Korea Maritime and Port Administration(KMPA)

Renamed from the Korea Port AuthorityUnder Central GovernmentPort Management and Development

1989 Korea Container Terminal Authority(KCTA)

Operating and Managing Container PortsUnder Central GovernmentManagement & Development of Container ports for KMPA

1996 Ministry of Maritime Affair and Fisheries(MOMAF)

Port Management and DevelopmentCentral GovernmentExpanded to the Ministry Level(From KMPA to MOMAF)

2003 Busan Port Authority(BPA)

Management & Development of Busan’s Entire Port FacilitiesIndependent Corporation under the Port Authority LawCurrent Busan and New Container Ports

2005 Incheon Port Authority(IPA)

Management & Development of Incheon’s Entire Port FacilitiesIndependent Corporation under the Port Authority LawCurrent Incheon and Songdo New Ports

2007 Ulsan Port Authority(UPA)Management & Development of Ulsan’s Entire Port FacilitiesIndependent Corporation under the Port Authority Law

2008 MOLTMA Function is same as MOMAF


Port Legislation and AdministratorsPort Legislation and Administrators

Classification

ContentsAdministrat

or

Harbour ActDesignation, Development & Management/Operation of Ports

Port Policy Division of MOLTMA

New Port Construction

Promotion Law

Formulation of Basic Plan on New Port ConstructionDesignation & Management of the Area Determined for New Port Construction

Port Development

Division of MOLTMA

Law of Private Participation in Infrastructure

Formulation of Basic Plan on Private Investment Facility ProjectConclusion of Concession Agreement & Designation of Concessionaire

Private Investment Division of MOLTMA

Act on Korea Container Terminal Authority

Establishment & Operation of Korea Container Terminal Authority Except for Busan & IncheonDevelopment & Operation of Container TerminalsFinancing of Development Funds, etc.

Korea Container Terminal

Authority(KCTA)

Act on Busan Port Authority

Management & Development of Container Port, Facilities & Areas(e.g. distripark, Inland depot) related to Busan PortManagement & Development of Overseas Container Ports

Busan Port Authority(BPA)

Act on Incheon Port Authority

Management & Development of Container Port, Facilities & Areas(e.g. distripark, Inland depot) related to Incheon Port

Incheon Port Authority(BPA)

Act on Ulsan Port Authority

Management & Development of Container Port, Facilities & Areas(e.g. distripark, Inland depot) related to Ulsan Port

Ulsan Port Authority(BPA)

Source ; Complied from MOLTMA Materials


ⅣⅣ. Container Port Developing in Korea. Container Port Developing in Korea

11 Location Map of the Korea Location Map of the Korea PortsPorts


Layout of the Port Busan Container Layout of the Port Busan Container TerminalTerminal


Major Port Development Plan

• Designated nine Ports as a New Port

Development Project

– Three National Big Projects

– Six New Port Projects

22 New Port Development PlanNew Port Development Plan


Three National Big ProjectsThree National Big Projects- Busan New Port- Busan New Port


Three National Big ProjectsThree National Big Projects - Gwangyang New Port - Gwangyang New Port


Three National Big ProjectsThree National Big Projects - Pyeongtaek New Port - Pyeongtaek New Port


Six New Port Projects Six New Port Projects - Gunsan New Port - Gunsan New Port


Six New Port Projects Six New Port Projects

- Mokpo New Port - Mokpo New Port


Six New Port Projects Six New Port Projects

- Ulsan New Port - Ulsan New Port


Six New Port Projects Six New Port Projects - Pohang New Port - Pohang New Port


ⅤⅤ. Developing FEZ & FTZ linked with Port. Developing FEZ & FTZ linked with Port

11 Existing FEZExisting FEZ

StrategicStrategicLocationLocationStrategicStrategicLocationLocation

Support &Support &IncentivesIncentivesSupport &Support &IncentivesIncentives

Upscale LivingUpscale LivingConditionsConditions

Upscale LivingUpscale LivingConditionsConditions

Ideal BusinessIdeal BusinessEnvironmentEnvironment

Ideal BusinessIdeal BusinessEnvironmentEnvironment

Spearhead Spearhead InfrastructureInfrastructureSpearhead Spearhead

InfrastructureInfrastructure

OtherRegionsOther

RegionsDifferentiationDifferentiation

Free Economic ZonesFree Economic Zones


MarketMarketcompetitioncompetition

MarketMarketcompetitioncompetition

Business-Business-friendlyfriendly

environmentenvironment

Business-Business-friendlyfriendly

environmentenvironment

FreeFreeEconomicEconomic

ZonesZones

FreeFreeEconomicEconomic

ZonesZones21st 21st

CenturyCentury

LeaderLeader

21st 21st

CenturyCentury

LeaderLeaderCorporate Corporate mobilitymobility

Corporate Corporate mobilitymobility

Global competitionGlobal competition


Why Free Economic Zones in Korea?Why Free Economic Zones in Korea?Why Free Economic Zones in Korea?Why Free Economic Zones in Korea?

Geographic Geographic advantageadvantage

Geographic Geographic advantageadvantage

Sustainable Sustainable economic economic

growthgrowth

Sustainable Sustainable economic economic

growthgrowth

Facilitating Facilitating foreignforeign

investmentinvestment

Facilitating Facilitating foreignforeign

investmentinvestment

Northeast Asian Business HubNortheast Asian Business Hub


Northeast Asian Business Hub StrategyNortheast Asian Business Hub StrategyNortheast Asian Business Hub StrategyNortheast Asian Business Hub Strategy

OpennessOpenness

ForeignForeignInvestmentInvestment

Regional EconomicRegional EconomicCooperationCooperation


Why Incheon, Busan-Jinhae and Gwangyang?Why Incheon, Busan-Jinhae and Gwangyang?

GwangyangGwangyangFEZFEZ

GwangyangGwangyangFEZFEZ

Busan-JinhaeBusan-JinhaeFEZFEZ

Busan-JinhaeBusan-JinhaeFEZFEZ

IncheonIncheonFEZFEZ

IncheonIncheonFEZFEZ

Korea’s FEZs Korea’s FEZs Korea’s FEZs Korea’s FEZs

- Logistical advantage

- Excellent infrastructure


FEZ BenefitsFEZ BenefitsFEZ BenefitsFEZ Benefits

Optimal Business EnvironmentOptimal Business Environment

Superb Living ConditionsSuperb Living Conditions

One-Stop Administrative ServicesOne-Stop Administrative Services


Optimal Business EnvironmentOptimal Business EnvironmentOptimal Business EnvironmentOptimal Business Environment

Tax reductionsTax reductions

Labor flexibilityLabor flexibility

DeregulationDeregulation


Superb Living ConditionsSuperb Living ConditionsSuperb Living ConditionsSuperb Living Conditions

Parks and Parks and golf coursesgolf courses

InternationalInternationalschoolsschools

Theme parksTheme parks

World-class World-class medical caremedical care


One-Stop Administrative ServicesOne-Stop Administrative ServicesOne-Stop Administrative ServicesOne-Stop Administrative Services

One-Stop Administrative ServicesOne-Stop Administrative Services

Foreign Investment Ombudsman’s OfficeForeign Investment Ombudsman’s Office

Free Economic Zone AuthoritiesFree Economic Zone Authorities


22 New FEZNew FEZ

Three New Projects in Three New Projects in

KoreaKorea

Yellow Sea FEZ Yellow Sea FEZ

Daegu-Gyeongbuk FEZDaegu-Gyeongbuk FEZ

Saemangeum-Gunsan FEZSaemangeum-Gunsan FEZ


Three New Projects : Three New Projects : Yellow Sea FEZYellow Sea FEZ

- Location

Chung-Nam & Gyeong-Gi nearby PyeongTaek∙DangJin

Port

- Dimension : 16836.48acre

- Development Period : 2008-2025

1st Phase : 2008-2013, 2nd Phase : 2014-2019, 3rd Phase

: 2020-2025- Development Plans

- To constitute world class High-Tech industry cluster

- To establish the Northeast Asian trade & value-added

logistics base


- Location

Dauge, Gyeongsan, Yeongcheon, Gumi etc



1st Phase : 2008-2013, 2nd Phase : 2014-2020

- Development Plans

- To develop the Northeast Asian knowledge-based

industry center

- To Establish global industry cluster with fostering

regionally specialized knowledge-based industry

Three New Projects : Three New Projects : Daegu-Gyeongbuk Daegu-Gyeongbuk FEZFEZ


- Location

Gunsan, Buan, Saemangeum reclaimed land, etc



1st Phase : 2008-2020, 2nd Phase : 2021-2030

- Development Plans

- To develop the core manufacturing base of future new

industry

- To foster the best international tourist & leisure industry

hub in East Asian

Three New Projects : Three New Projects : Saemangeum-Saemangeum-Gunsan FEZGunsan FEZ


- Reducing Public Functions

- Encouraging Active Privatization

- Port Co-opetition Strategies among the regions will be needed

- Deregulation will be improved

- Observing Liners Centralization

- Accurate Traffic Technology Forecasting

- T/S Cargo pattern will be Changed

- Over Capacity Issues

- Governance Bodies of FEZ

- Improved Foreign Investment Fund

- China’s Economic and Traffic Growth

- Improved Port Governance System

- Observing Ship’s Size to be called

ⅥⅥ. Issues to be Discussed. Issues to be Discussed

Thank you for your attention!Thank you for your attention!

korea port governance system and new challenge issues

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