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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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, %)
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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)
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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%
• Top 10 carriers control 60.5%Top 10 carriers control 60.5%
• Top 20 carriers control 82.5%Top 20 carriers control 82.5%
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
- 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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Source ; http://www.mltm.go.kr
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Source ; http://www.mltm.go.kr
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Source ; http://www.mltm.go.kr
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Source ; http://www.mltm.go.kr
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
* 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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
· · 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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
ⅣⅣ. Container Port Developing in Korea. Container Port Developing in Korea
11 Location Map of the Korea Location Map of the Korea PortsPorts
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Layout of the Port Busan Container Layout of the Port Busan Container TerminalTerminal
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Three National Big ProjectsThree National Big Projects- Busan New Port- Busan New Port
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Three National Big ProjectsThree National Big Projects- Busan New Port- Busan New Port
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Three National Big ProjectsThree National Big Projects - Gwangyang New Port - Gwangyang New Port
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Three National Big ProjectsThree National Big Projects - Gwangyang New Port - Gwangyang New Port
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Three National Big ProjectsThree National Big Projects - Gwangyang New Port - Gwangyang New Port
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Three National Big ProjectsThree National Big Projects - Pyeongtaek New Port - Pyeongtaek New Port
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Six New Port Projects Six New Port Projects - Gunsan New Port - Gunsan New Port
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Six New Port Projects Six New Port Projects
- Mokpo New Port - Mokpo New Port
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Six New Port Projects Six New Port Projects
- Ulsan New Port - Ulsan New Port
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Six New Port Projects Six New Port Projects - Pohang New Port - Pohang New Port
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Northeast Asian Business Hub StrategyNortheast Asian Business Hub StrategyNortheast Asian Business Hub StrategyNortheast Asian Business Hub Strategy
OpennessOpenness
ForeignForeignInvestmentInvestment
Regional EconomicRegional EconomicCooperationCooperation
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
FEZ BenefitsFEZ BenefitsFEZ BenefitsFEZ Benefits
Optimal Business EnvironmentOptimal Business Environment
Superb Living ConditionsSuperb Living Conditions
One-Stop Administrative ServicesOne-Stop Administrative Services
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
Optimal Business EnvironmentOptimal Business EnvironmentOptimal Business EnvironmentOptimal Business Environment
Tax reductionsTax reductions
Labor flexibilityLabor flexibility
DeregulationDeregulation
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
- Location
Dauge, Gyeongsan, Yeongcheon, Gumi etc
- Dimension : 8584.78acre
- Development Period : 2008-2020
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
- Location
Gunsan, Buan, Saemangeum reclaimed land, etc
- Dimension : 23795.83acre
- Development Period : 2008-2030
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
Korea Port Governance System & New Challenge IssuesKorea Port Governance System & New Challenge Issues
- 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!