Changwong Masan port became as an open port in 1899 and has been the major gateway of southeast of Korea as a global trade port. It has been functioning not only as a port of support for Chanwon national industrial complex but also a transport route f...
Changwong Masan port became as an open port in 1899 and has been the major gateway of southeast of Korea as a global trade port. It has been functioning not only as a port of support for Chanwon national industrial complex but also a transport route for the manufacturing companies including Masan Free Trade Zone in the central Kyungnam area and its major handling cargoes as an international distribution port are containers, general merchandise, cars, vehicles, steels. scrap irons covering about 1.2% of national cargo volume.
Tracking the trends of cargo volume of Masan port for last 10 years, the total cargo volume has been increased but the container transport result has been recorded as 47,352 TEUs in 2003, 55,559 TEUs in 2005, 29,468 TEUs in 2007, 13,482 TEUs in 2009, 12,058TEUs in 2010, 7,892 TEUs in 2011. This shows that the container export and import volume has been sharply decreased since 2004. Otherwise, steels and machinery volume have been continually increased, meaning that it has been being changed to a hub port for heavy products. Due to this reason, regular container liners have repeated service and stop of their vessels and Masan New Port scheduled to be opened on October, 2013 has already been being suffered from securing the cargo volume. Thus, there have been diversity of opinions for the worry of the port operation effectiveness.
Masan port has not successfully achieved the result more than expected at the various fields such as port facilities, operation, strategy, etc., except some of partial port facilities. Thus it is the time to take a reassessment for its roles and functions. This crisis may be not from the its physical age but from its fundamental function.
There are 3 other international trade ports, Jinhae port, Busan New port except Masan port in the jurisdiction of Changwon city. Masan port and particularly Masan New port has been individually developed without any strategic connection with Busan New port and Jinhae port. In this result, it has had to take its one eye to the transfer of cargo volume to neighboring ports and to introduce similar incentive programs. This shows that the port has been inefficiently operated so far.
In order to make the port to be a hub port of Eurasia in pacific rim era, the constructions of infrastructure of transportation and harbor logistics, and of a new growth strategic industry belt and a decentralized industry cluster should be taken. co-opetition strategy of Changwon Masan port is definitely required as a local development strategy enhancing national competition in the center of megaregional economy bloc from that of arithmetic balance to reinforcing the Northeast Asia port competitiveness so that Northeast Asia International business and financial industry can be successfully fostered.
For the operation of a port, scale of economy is highly critical. Thus provided that a intergarated management and operation of Masan port, Jinhae port, Busan New port could be achieved, the scale of economy of the port can be realized and a step forward to the center port of Northeast Asia is to be taken. And also it can help cost down and make it easy to enter a new market with avoiding overlapping investment. It shall also contribute to the improvement of service quality and the competitiveness of the port.
In this regard, as the ripple effect of co-petition strategy among ports is very great, it is necessary to push ahead with the co-opetition strategy among Masan port, Jinhae port and Busan New port.
Therefore, this study raised an issue after figuring out strengths and weaknesses of Masan port by change of conditions surrounding Masan port and advanced research to prioritize ecision motive factors of co-opetition strategy of Changwon Masan port. And to draw an order of priority to decide decision factors of co-opetition strategy of Masan port, a design of representative attributes and AHP(Analytic Hierarchy Process) has been taken and the questionnaire was shippers, shipping / operation companies, academia, port related-authorities, Changwon city and the opinions of each expert group was analyzed by AHP model.
The result showed that the order of priority for the decision factors of co-opetition strategy of Changwon Masan port was listed as 1st Economic Motivation, 2nd Strategic Motivation, 3rd Operational Motivation, 4th Marketing Motivation, 5th Financial Motivation. Of the them, closely examining the importance of 2nd detailed evaluation fators, it showed 1st additional cost down of investment expense of Economic Motivation, 2nd cost down of port service expense, 3rd cost down by relative predominance, 4th profitability seeking by prevention of excessive competition, 5th securing background land of port, 6th increasing numbers of arriving vessels of Strategic Motivation, 7th connectivity with backbone ports, 8th reinforcing the port function. Based on this analyzed result, the prior object port was selected of Jinhae port, Masan port and Busan New port in the jurisdiction of Changwon. And the change of cargo volume was predicted and a direction of development of Masan port was suggested in case that Masan port adopts the co-opetition strategy.
At this study, the progress direction of development strategy of Masan port by analysis of the co-opetition strategy for Changwon Masan port can be summarized in overall as below;
1st, Masan port has taken charge of commerce and industry, the function of transportation center and the simple function for export and import as 1st and 2nd generation port for past years but today Changwon Masan port is required to have a strategy of being fostered as an intermediary port between inland and continent by construdting the network of transshipment cargo and attracting global distribution companies so that it can jump up to a high value added cargo creation port as 3rd and 4th generation port.
2nd, in order for Masan port to have a position reinforcement , the closed paradigm for existing independent survival should be changed an open integral distribution system based on Competition and Cooperation, which will lead to securing a substantial foundation of growth of Masan port. Thus, with this model, a cooperative relation between Chandwon Masan port and local ports should be seek, and also in the short run, an introduction of unified port system between Changwon Masan port and Jinha port should be considered and in the medium and long run, a unified port system od southeast zone should be constructed by pre-introducing a unified port system with Changwon Masan port, Jinhae port and Busan New port.
3rd, for a effective port management, unifying the divided port management systems such as Ministry of Maritime Affairs and Fisheries, Kyungsangnamdo, Changwon city and P.A should be realized as one governance system. By this system, the dealing cost for port service should be minimized and the economical effectiveness should be raised, which will require an organizational change.
4th, a plan for managing an united port should be positively considered to reinforce competitiveness and improve users’(shipping companies, shippers) convenience of Masan port, Jinhae port, Busan New port.
5th, the quarantine, emigration and immigration and customs declaration proceses should be unified by selecting a main agent for the unified port management. And also it should be allowed to be co-used by port support facilities and agencies. A port belt of southeast zone of Masan port-Jinhae port ? Busan port is to be constructed and a total distribution base as 3rd generation port is to be constructed.
With these results, the competitiveness of individual ports, particularly medium and small ones which are Masan port and Jinhae port in southeast zone of Korea is evaluated as week compared with other ports such as Powang port, Ulsan port and Busan port in the southeast jurisdiction zone. Thus, by re-establishing the function of ports of southeast zone, the existing ports should be grouped into 2~3 ports and then, the port development and operation is to be done. In the end, it should be desirable to introduce an unified port system.