A Study on the Policy Priorities for the Enhancement of the Trans-shipment Competitiveness of the Port of Busan

Abstract

This paper intends to evaluate the policies which are considered necessary to enhance the T/S competitiveness of Busan’s port, and thereby present suggestions to the government which would best implement the results of this research. This research first raises the claim that the majority of the following four conditions: location of the port, port productivity/service level, status of network with overseas ports, and cost competitiveness, should be satisfied in order to maintain a competitive T/S port. Based on these four conditions, seven policies, which are individually pertinent to the four conditions, have been drawn up for proposal, and they are also analyzed in the survey, where all the eligible samples participate to ensure if they are effective in enhancing the T/S competitiveness of Busan. Proposed important policies are a) Terminal operator integration, b) port infrastructure expansion, c) global carriers owned terminal operation, d) enhancement of national carrier’s competitiveness, e) feeder carriers’ owned terminal operation in new port, f) institutional support for effective and convenient environments for handling T/S cargo, and g) volume incentive expansion. From the analysis by which all the relevant parties (Carriers, Terminal Operators, Port Authority) are answered, it was found that all the seven policies have relevance in strengthening the transshipment competitiveness of Busan’s port. Whereas in the analysis that uses AHP methodology to compare the significance among the different policies, it was found that terminal operator integration has the highest priority in terms of increasing transshipment competitiveness.