Port & Logistics Research DivisionDirector GeneralSung Woo Lee
Establishes a 10-yr basic plan every 5 yrs as prescribed by Basic
Logistics Policy Act
Reduces logistics cost, improves national industrial competitiveness,
creates value-added logistics and increases job demands by building
up the efficient national logistics system.
Enhances the competitiveness at home and abroad by organically
responding to global, national and regional economic environment
changes
Systemized logistics plan is required to improve the national competitiveness
Evaluates the current logistics system, industrial competitiveness & response level by diagnosing environmental & situational changes
Diagnosis & evaluation of the logistics policy implementation status over the last 10 year
Maximizes the benefits of completed projects by assessing the performance & analyzing the implementation status of existing plansDecides whether to continue or improve uncompleted projects by analyzing causes
Finding ways to improve through performance review & self-examination
Finds a new policy direction that replaces previous vision & goals &
specifies implementation plans based on policy keywords of the
upcoming 10 years.
Draws new vision & goals of logistics policies & Discovers strategies & projects to implement
Diagnostics! Evaluation! Analysis! Outlook! And Improvement!
National Logistics Basic Plan Revision (2011~2020), 2011, Ministry of Land, Transport &Maritime Affairs
Legal basis : Article 11, Basic Logistics Policy Act.
National Logistics Basic Plan(2001~2020), 2001, Ministry of Construction & Transportation
Legal basis: Article 3, Logistics Promotion Law
National Logistics Basic Plan Revision (2006~2020), 2006, Ministry of Construction &Transportation
Legal basis : Article 3, Logistics Promotion Law
National Logistics Basic Plan Revision(2016~2025), 2015 Legal basis : Article 11, Basic Logistics Policy Joint implementation of Ministry of Oceans & Fisheries &
Ministry of Land, Infrastructure and Transportation
Continuous planning since the governance changes in 2001
National Logistics Basic Plan
Shipping HarborMaritime
Affairs
• Shipping industry’s long-term development plan
• Basic plan of crew supply and demand
Maritime Transport Act
Sea Affairs Act
• Basic harbor plan(Trade port/Costal port)
• Port hinterland development master plan
Harbor Act
•Maritime safety basic plan
Maritime Safety Act
Int’l Logistics
MLIT
Rail roads, Roads, Aviation, Inland
Logistics Facilities etc.
MOF
Dualized logistics governance is dealt with integrated plan
Review on policy Implementation directions
/Comparative analysis of implementation plans
Change & Outlook of domestic/int’l logistics
environment
SWOT analysis of domestic
logistics system
Analysis/evaluation of implementation status
of existing plans
Proposal of national logistics vision
& goals
Establishment of implementation
strategies & action plans
Establishment of performance management
methods
Organized cooperation between the two research agencies across the entire process including statusanalysis, strategy establishment & project discovery(Build up co-work system within & between agencies)
Systemized establishment of vision, goals & strategies through advice of management strategy experts
Policy improvement by having research led by expert researchers depending on major policy element
Move to next phase after sharing & adjusting research results of each phase through joint workshop atevery phase
Enters into the int’l logistics market to respond to changes of future logistics mapStrengthens the competitiveness of logistics industry by making market advanced and performing regulatory innovationDiscovers smart logistics tech dealing with future and raises information-oriented business
Realizes the efficient logistics by establishing land/sea/air integrated logistics systemSecures soft-infra for offering high-quality logistics serviceRealizes the advanced logistics system by enhancing green logistics and logistics security
Realization of global logistic powerhouse leading creative innovation and sustainable growth
Global logistics powerhouse leading the 21st low-carbon green growth
Creation of new growth engineEnhanced capability to respond to future
Continuous economic feasibility support
Leading low-carbon green growthAdding high-value to logistics
industry
• Driven by private, backed up by gov’t
• Job creation, life-support logistics• Efficiency and value-added• Eco-friendly, security and safety
Vision Achieves the National Prosperity through logistics
GoalTransition of logistics industry trend from services to adding value
Int’l logistics industry system moving from quantitative growth to qualitative
growth
Strategy
Nurturing business/Creating market/
Globalization/Creating added value
Improving service for public’s welfare, quality of life(employment/logistics
service/HR development/quality of life)
Activating logistics infra & investment attraction
Future response & Eco-friendliness
(Sustainable tech)
Safety first, regulatory innovation & market
normalization (including maritime affairs)
Vision, goals, strategies and specific implementation plans
Establishment of national logistics basic plan (1yr)
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Establishment of local logistics basic
plan (1yr)
Deliberation→ Decision→Notificati
on
Deliberation→ Decision→Notification
Plan & Implementation
projects
0 12 24National Level
When notified as national plan, local plans are devised and implemented (2-yr required)
Local Level
World’s 2nd best airport, 6th largest harbor, LPI 23thWorld’s 9th largest freight volume, 5th bottoms
Improvement of national logistics competitiveness
Accounting for 10% of national GDP(shipping 3%), 5th largest national income (shipping)Support for the growth of national key infra industries such as shipbuilding, steel, automobile, electronics
Contribution to national wealth
No. 1 in the E-commerce market growth rate
Commercialization of block chain, IoT, AI, VR & various technologies
applied in logistics
Foundation for convergent growth connected with 4th industrial technology
Contribution to improve the national environment by securing harbor-based eco-friendly logistics system
Establishment of eco-friendly and safe logistics system
New construction of Busan New Port
• Ongoing project since 1995, until 2020
• To be a Hub Port of the Northeast Asia
In 2016, ranked the world top 6 cont’ port
Construction of World-class infrastructure
Planning to
Construct a LNG Bunkering Terminal
Keep dredging work to provide sufficient depth for ULTRA Large Vessel
Redevelop the North Port of Busan(Old Port) as a People Friendly Port
Response to internal/external environmental changes with redevelopment of harbor and construction of LNG bunkering terminal
Improvement of national living environment by establishing eco-friendly logistics system
Strategy/Specific Targets Performance Index Unit Dept. 10yr 15yr 20yr 25yr
1 Expansion into int’l logistics market responding to logistics map changes in the future
1.1Increase of overseas sales of
logistics company
Share of overseas sales of
integrated logistics company% Policy 19.80 22.0 26.3 31.6
1.2 Building global networkAvg # of overseas bases of
integrated logistics companyRegion Policy 5.97 9.97 12.71 16.80
1.3Raising global logistics
company
Expert logistics company with a
sales of 3trillon or more
Compa
nyPolicy 1 2 4 5
1.4 Nurturing Korean style GTO # of Korean style overseas GTO ea
Harbor
logistics
planning
11 12 14 17
1.5 Building global network# of North Pole Route use in
total by logistics company ea
Maritime
policy- 3 15 30
2 Strengthening competitiveness of logistics industry through market advancement and regulatory innovation
2.1Quality improvement of
national logistics serviceLPI Point Policy 3.7 3.67 3.94 3.96
2.2Reduction of national logistics
cost
National logistics cost rate
against GDP% Policy 10.4 9.8 9.0 8.2
2.3 Expansion of logistics market Third-party logistics use rate % Policy 52.0 60.0 70.0 73.6
2.4Increase of productivity of
logistics company
Operation profit rate of
logistics company % Policy 3.5 5.0 5.80 6.82
2.5
Improvement of
competitiveness of SM-sized
logistics company
Sales of company with 300
employees or less
KRW
100,000
,000
Policy 2.27 2.31 2.67 3.09
2.6
Enhancement of
competitiveness of shipping
market
Bottoms of national shippers
Ton
100,000
,000
Maritime
policy0.44 0.67* 1.0 1.5
3 Discovery of future-oriented smart logistics technology and fostering information business
:
:
:
:
Less effective in implementing the logistics plan due to diversified governance
Insufficient to overcome infra-focused logistics policies
Lack of understanding among people about logistics industry
Limit to respond to rapidly changing logistics environment
Restricted cooperation and sharing logistics policies with neighboring countries
Insufficient upbringing of expert manpower
Required to unify logistics governance
Shipping, overland transport, air transport, professional logistics
and industrial logistics should be integrated
Required to develop infrastructure under the logistics plan
Hard to manage policies if the functions of infra-focused
logistics departments covering railroads, ports and air are strengthened
Customized plan to match up to the national economy
Infra → Freight Volume → Added Value → Network → City Development
Plan to meet the national environment and features
Policy-making that considers geological features and
specification of each mode
Required to foster not only logistics experts
but also logistics master
Manpower being capable of understanding and managing SCM
at the national level should be secured in addition to logistics
experts in each sector
Cooperation with global logistic experts at the early stage
When devising logistics plans, cooperation with global experts
via ODA or international organizations is required
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