legal framework for dry-port development and operation in korea · 2017-11-30 · legal framework...
TRANSCRIPT
Legal Framework for Dry-Port Development and Operation in Korea
ChoongYeol (Peter) Ye
Chief Director for Global Transport ResearchThe Korea Transport Institute
Second Meeting of the Working Group on Dry Ports
14 - 15 November, 2017
I. Introduction
II. Scope of Research
III. Theoretical Background and Methodology
IV. Empirical Findings
V. Discussion & Conclusion
Contents
I. Introduction
1-1. Challenges of Seaport
Emerging Economy
International Trade Supply Chain Social Demand
Increased Import
IntegrationIncreased Export
Sophistication
Congestion
Pollution
Demand for
Increased Capability of Sea Port
The rise of emerging economies has been marked by a transformation in transportation and logistics toward integration and sophistication of functions in supply chains.
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I. Introduction
AB
CD
E
A
B
C
D
E
Shippers RoadSeaport Rail Dry Port Hinterland
1-2. Definition of Dry Port
A logistics center connected to one or more modes of transport for the handling, storage and regulatory inspection of goods moving in international trade and the execution of applicable customs control and formalities.
Customs Clearance Railroad and/or Road Freight Forwarding
Consolidation
Dry Port
(ICD)
Warehousing
Shipping Line
Repair Facilities
Container Packing
Storage Customer Service
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I. Introduction
1-3. Importance of Dry port
Port Capability
Long-Term Mid-Term Short-Term
New-Building
TechnologyExpansion
Equipment
Organization
Conventional Measures
Economical and Effective Measure
ICD Dry Port CFS
Cost
A
E
B
C DC
Long-TermMid-TermShort-Term
Po
rtC
ap
ab
ilit
y
A: OrganizationB: EquipmentC: Dry PortD: Port ExpansionE: New Port Building
Dry Port can be an economical and effective measure to complement international and domestic transportation services with intermodal connectivity.
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I. Introduction
Container Yard, Container Freight Station
Dry Port ,Inland Container Depot (ICD)
Value Added Logistics Center
Export and Import Processing Zone,Industrial ComplexSpecial Economic Zone
1-4. Dry Port Functionality
The role of dry port varies depending on country and region.Many dry ports have shown a consistent pattern of their evolution.
Functional Evolution of Dry Ports.Reference: UNESCAP(2006a)
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II. Scope of Research
2-1. Acts and Factors of Dry Port
Development and operation of dry port shall be implemented with related law and institution which is the basis for other factors that influence implementation of a dry port.
Dry Port
(Inland Container Depot)
Factors that influence implementation of a dry port
Environment
Infrastructure
Land Use
Actors that are influenced by a dry port
Law and Institution
Shippers
Seaport
Rail operators
Road operators
SocietyPolitical and Economical Decision
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III. Theoretical Background and Methodology
3-1. Theoretical Background
The importance of institutions in economic development has been well established. (North, 1990; Williamson, 2000; Hall, 2003; Acemoglu and Robinson, 2008)
Law and Institution
Economic Development
International Trade
Logistics
InfrastructureSectoral
Arrangement
Acemoglu, D., Robinson, J., 2008. The role of institutions in growth and development, Working Paper No. 10, Commission on Growth and Development, The World Bank Group, Washington, DC.
Hall, P.V., 2003. Regional institutional convergence? Reflections from the Baltimore Waterfront. Economic Geography 79 (3), 347-363
North, D., 1990. Institutions, Institutional Change and Economic Performance. CUP, Cambridge
Williamson, O.E., 2000. The new institutional economics: taking stock, looking ahead. Journal of Economic Literature 38 (September), 595-613
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III. Theoretical Background and Methodology
3-2. Methodology: Case Study
- implementation of the laws and institutions by Korean government.
Case Study
Institutional
Framework Legal Framework
Government
Organization
A Case of Uiwang ICD Development & Operation
Implications from Korea’s Experience
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IV. Empirical Finding
4-1. Uiwang ICD Development
Korean government decided to develop Uiwang ICD with social demand with growing economy in 1990’s. The laws for the development were relevantly introduced.
Central Government
Municipal Government
Concessionaire
Facilities OperationLand Use Infra
PPP
BTO BTL BOT BOO
Act on the Development and Management of Logistics Facilities
Act on Public-Private Partnerships in Infrastructure
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4-2. Legal Framework of South Korea
Act on the development and management of logistics facilities and act on public-private-partnership in infrastructure consist of legal framework for dry port development and operation.
IV. Empirical Finding
Dry Port (ICD)
Planning Operation Authorization Financing
Act on the Development and Management of Logistics Facilities
Act on Public-Private-Partnerships in Infrastructure
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4-2. Legal Framework of South Korea
IV. Empirical Finding
Article 7 (Registration of Complex Logistics Terminal Businesses)Guidelines for registration of complex logistics Terminal Businesses
Article 20 (Support for Development of Logistics Terminals)Financial, landing and infrastructure support from Government
Article 20-2 (Supports for Activation of Logistics Terminals)Granting authorization for revision to the execution of project including the installation of
a manufacturing facilities and its ancillary facilities
Article 30 (Authorization, Permission, etc. Deemed Granted)Guidelines for authorization, permission, etc. and deemed granted
Article 1 (Purposes) Rationally laying out and
management of logistics facilities
Article 2 (Definitions)Logistics Facilities, Logistics TerminalsComplex Logistics Terminal Businesses
Support and guide for development and management of dry port and ICD
Act on the Development and Management of Logistics Facilities
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4-2. Legal Framework of South Korea
IV. Empirical Finding
Ministry of Land, Infrastructure and Transport
Authorization, Permission, etc. Deemed Granted under Other Act
Approval Public Announcement
Construction Plan by Logistics Terminal Operator
Construction Plan Changes in Construction Plan
Dry port operators shall be deemed granted the relevant authorization, permissions, etc., after it gets approval on its plan for
construction from MOLIT.
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4-2. Legal Framework of South Korea
IV. Empirical Finding
The central or local governments can support developing and activating dry ports in both direct and indirect ways.
Supports for Development and Activation of Logistics Terminals
Logistics Terminals
Development Activation
Supports and Incentives from Government
(1) Granting Loans to Logistics Terminal Operators
(2) Providing Funds for installing Roads, Railroad, and Water Ways.
(3) Arrange of Request to the Competent Mayors or Governors inSecuring the Project Site or Installing Urban or Local Planning Facilities
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4-2. Legal Framework of South Korea
IV. Empirical Finding
Master Plan for PPP Projects Implementation of Infrastructure
Facilities Projects
Chapter1. General Provisions Purpose, Definitions, Composition and Operation of Committee
Chapter2. Infrastructure Facilities Projects Guidelines for implementation of PPP Projects
- Management and Operation of Infrastructure Facilities- Infrastructure Credit Guarantee Fund
- Investment and Financing Collective Investment Scheme
for Infrastructure Facilities
Chapter3. Supervision Chapter4. Supplementary Provisions
Support and guide for development & management of dry port and ICD
Act on Public-Private Partnerships in Infrastructure
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4-2. Legal Framework of South Korea
IV. Empirical Finding
Government should establish and publicize the master plan of the private investment project.
Master Plan by Government
Formulation Notification Public Announcement
PPP Projects PPP Facilities Project
Details of Mater Plan
(1) Direction of the Private Investment Policy(2) Scope of Investment(3) Methods and Conditions of the Private Investment Project
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4-2. Legal Framework of South Korea
IV. Empirical Finding
Concessionaire is deemed to be received the authorization, permission,
etc. set out in the related laws when the competent authority notifies the
implementation plan.
Competent Authority
Authorization, Permission, etc. Deemed Granted under Other Act
Approval Confirmation
Implementation Plan Construction Completion
Concessionaire must get approval of the implementation plan prior to the implementation of PPP project.
Concessionaire should submit a construction report to the competent authority.
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4-2. Legal Framework of South Korea
IV. Empirical Finding
The private investment facility project shall be managed and operated in
accordance with the provisions of the concessionaire agreement.
Concessionaire Agreement
Rights to Manage and Operate Infrastructure Facilities
Implementation Plan Construction Completion
Concessionaire must get approval of the implementation plan prior to the implementation of PPP project.
Concessionaire should submit a construction report to the competent authority.
(1)Concessionaire shall register its rights to manage and operate facility.
(2) Concessionaire shall be responsible for the proper maintenance.
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V. Discussion & Conclusion
The important function of the two acts for dry port development is to simplify legal steps and prevent legal conflict with authorization, permission, etc. deemed granted under other related acts.
5. Discussion
Act on the Development and Management of Logistics Facilities
Act on Public-Private Partnerships in Infrastructure
Authorization, Permission, etc. Deemed Granted under Other Act
Simplify the Legal Steps Prevent the Legal Conflict
Encourage Development of Dry Port with Organized Legal Framework
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V. Discussion & Conclusion
Legal framework affects entities which involves in dry port development.
It will be the guideline for government and private sectors to collaborate for dry port development and operation.
5-2. Conclusion
Private Sector
Legal Framework
Government
* National Logistics Master Plan* National Logistics Facilities Master Plan
* Act on the Development and Management of Logistics Facilities
* Act on Public-Private Partnerships in Infrastructure
* PPP Participation * Project Development Plan
Dry Port
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V. Discussion & Conclusion
Legal framework and institution for dry port development shall clearly state entity, roles, responsibility and relevant process for planning, authorization, operation and financing of dry port development.
5-2. Conclusion
Dry Port (ICD) Development and Operation
Legal Framework and Institution
Planning Operation Authorization Financing
Entity Roles Responsibility Process
Minimize Legal Conflict
Clarify Grey Area for Logistics Facility Development
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KOTI-EASTS Joint Research Project
KOTI and Eastern Asia Society for Transportation Studies started a joint research project on “Establishing Legal and Institutional Basis for Efficient Dry Port Development in East Asia”.
Establishing Legal and Institutional Basis for Efficient Dry Port Development in East Asia
1. Joint Research Period: 2017.09.08.~2018.03.31.
2. Joint Research Group: KOTI, EASTS, Experts from South East Asia
3. Joint Research Contents
- General information of the country
- Government organization
- Institutional and legal framework
- Diagnosis on current system for developing logistics infrastructure
- Conclusion and suggestion
Organizing Research Group
( South East Asia Country)
KOTI
Joint Research Planning
Project Management
EASTS
KOTI-EASTS Joint Research Project
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V. Discussion & Conclusion
We invite UNESCAP member countries to join in this research project.
- Government officials, civil experts, professors