1 / 30

Dr Dong-Wook Song The University of Hong Kong

Asian Container Ports: Development, Competition & Implications for Busan. Dr Dong-Wook Song The University of Hong Kong. Discussion Points. Review of port development in the region Competition status between the ports Overview of transport logistics Strategic Implications.

jonah-bentley
Download Presentation

Dr Dong-Wook Song The University of Hong Kong

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Asian Container Ports:Development, Competition & Implications for Busan Dr Dong-Wook Song The University of Hong Kong Busan Development Institute

  2. Discussion Points • Review of port development in the region • Competition status between the ports • Overview of transport logistics • Strategic Implications Busan Development Institute

  3. Port in International Logistics and Trade International Trade Transport Logistics (international) Maritime Transport Shipping Port Busan Development Institute

  4. Implications from the Diagram • Transport demand is derived – not a direct, primary or final demand ! • Demand for maritime transport is derived particularly from international trade • At the same time, maritime transport is constrained by international logistics Busan Development Institute

  5. World Top 10 Container Ports (Unit:: 000 TEUs) Source: Containerisiation International (March, 2004) Busan Development Institute

  6. World Top 20 Container Ports Busan Development Institute

  7. Regional Container Ports in Asia Source: Loo and Hook (2002) Busan Development Institute

  8. Asian Container Port Network Major Ports Feeder Ports Busan Competition from adjacent Ports Shanghai to North America Shenzhen Kaoshuing Tanjung Pelepas Hong Kong to Europe Singapore Busan Development Institute

  9. Committed & Planned Port Development-Northeast China - Source: Ocean Shipping Consultants (2003) Busan Development Institute

  10. Committed & Planned Port Development-East and Southeast China - Source: Ocean Shipping Consultants (2003) Busan Development Institute

  11. Committed & Planned Port Development-Southeast Asia - Source: Ocean Shipping Consultants (2003) Busan Development Institute

  12. Committed & Planned Port Development- Korea - Source: Ocean Shipping Consultants (2003) Busan Development Institute

  13. Source: Ocean Shipping Consultants (2001) Busan Development Institute

  14. Source: Ocean Shipping Consultants (2001) Busan Development Institute

  15. Source: Ocean Shipping Consultants (2001) Busan Development Institute

  16. Source: Ocean Shipping Consultants (2003) Busan Development Institute

  17. Points to be noted !!! • Forecast is forecast: forecast tends to be optimistic !! • Thus, we have to seriously answer questions below - • Do we have enough cargoes (or demand) ? • Is the ever-expansion of port capacity justifiable or only a solution ? • However, at the same time, the following facts are to be taken into account – • Only those ports which have enough capacity and / or proper facility can enjoy demand increased – like a lottery !!! • Lead time, capital intensive investment, high sunk costs ….. make decision-making problems delicate and complicated. Busan Development Institute

  18. Asian Container Throughput by Region (Unit: %) Source: Ocean Shipping Consultants (2003) Busan Development Institute

  19. Some Thoughts on Port Demand • Demand for shipping services is derived from international trade. • Demand for port services is derived from or subject to shipping lines’ decision. • Shipping demand is the second; Port demand is the third ? • Ports become a ‘prawn’ in international trade !!! * * * * * How should a port react and respond ? Busan Development Institute

  20. To become more price competitive To improve service quality To expand service range To cope with increased customer's negotiation power (e.g. shipping alliances, ever-increasing vessel size) Port Market Driven Busan Development Institute

  21. Structural Changes in Transport Logistics • Economies of scope • Flexibility • Quality-oriented • Short trade cycle • Multi-modal transport • Global operation • Outsourcing • VAL services • Others • Economies of scale • Standardisation • Quantity-oriented • Long trade cycle • Uni-modal transport • Others Fordism Post-Fordism Busan Development Institute

  22. Current Development in Transport Logistics • More logistics activities ‘outsourced’ • Logistics services ‘integrated’ and ‘improved’ • Information technology (IT) widely ‘applied’ • 3PLs service scope ‘expanded’ Busan Development Institute

  23. Rail Operator Terminal Operator Barge Operator Warehouse Shipping Company Road Hauler LLP or 4PL (Logistics Integrator) Supplier Consumer Client Information flow between LLP and 3PLs Information flow in the supply chain of client Busan Development Institute

  24. A Strategic Response from Ports • The ‘Three Generic Strategies’ for creating a defensible position and outperforming competitors (Porter, 1980) • Cost leadership strategy • Differentiation strategy • Focus strategy Busan Development Institute

  25. A Strategic Response from Ports (I) Busan Development Institute

  26. A Strategic Response from Ports (II) • Hub port • Feeder port A comprehensive market analysis is a pre-requisite !! Focus or Positioning Busan Development Institute

  27. Strategic Options in General • Competition in 1980s – ‘Win & Lose Game’ • Co-operation in 1990s – ‘Win & Win Game’ • Co-opetition in the Millennium • ‘Selective Win & Lose Game’ • ‘Co-operate to Compete’ • To identify your collaborator and competitor • e.g. Port alliances against shipping alliances Busan Development Institute

  28. Source: Lloyd’s Freight Transport Buyer Asia (July/August, 2002) Busan Development Institute

  29. For Competitive and Successful Port Management in the Logistics Era • To constantly cope with changing market environment • To be global business players beyond port boundaries • To be global logistics service providers to customers • To achieve economies of scale being complemented by economies of scope • To focus on core competencies & outsource other logistics functions • To be technologically innovative • To be more commercially oriented Busan Development Institute

  30. Concluding Remarks • Maritime transport is subject to international trade and transport logistics chains. • Ever-changing business environment in maritime transport and logistics is a fact of challenging as well as opportunity. • New strategies are to continuously developed and implemented to be competitive and sustainable. • Objective market analysis and market positioning seem a key for Busan’s further success Busan Development Institute

More Related