Port & Logistics Research Division Director General Sung Woo Lee

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1 Port & Logistics Research Division Director General Sung Woo Lee

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4 Systemized logistics plan is required to improve the national competitiveness 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

5 Diagnostics! Evaluation! Analysis! Outlook! And Improvement! Diagnosis & evaluation of the logistics policy implementation status over the last 10 year Evaluates the current logistics system, industrial competitiveness & response level by diagnosing environmental & situational changes Finding ways to improve through performance review & self-examination Maximizes the benefits of completed projects by assessing the performance & analyzing the implementation status of existing plans Decides whether to continue or improve uncompleted projects by analyzing causes Draws new vision & goals of logistics policies & Discovers strategies & projects to implement Finds a new policy direction that replaces previous vision & goals & specifies implementation plans based on policy keywords of the upcoming 10 years.

6 Continuous planning since the governance changes in 2001 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 (2011~2020), 2011, Ministry of Land, Transport & Maritime Affairs Legal basis : Article 11, Basic Logistics Policy Act. 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

7 Dualized logistics governance is dealt with integrated plan National Logistics Basic Plan MOF MLIT Shipping Harbor Maritime Affairs Int l Logistics Maritime Transport Act Sea Affairs Act Shipping industry s long-term development plan Basic plan of crew supply and demand Harbor Act Basic harbor plan(trade port/costal port) Port hinterland development master plan Maritime Safety Act Maritime safety basic plan Rail roads, Roads, Aviation, Inland Logistics Facilities etc.

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9 Analysis/evaluation of implementation status of existing plans Review on policy Implementation directions /Comparative analysis of implementation plans Change & Outlook of domestic/int l logistics environment SWOT analysis of domestic logistics system

10 Proposal of national logistics vision & goals Establishment of implementation strategies & action plans Establishment of performance management methods

11 Organized cooperation between the two research agencies across the entire process including status analysis, 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 at every phase

12 Global logistics powerhouse leading the 21 st low-carbon green growth Continuous economic feasibility support Leading low-carbon green growth Adding 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 Realization of global logistic powerhouse leading creative innovation and sustainable growth Creation of new growth engine Enhanced capability to respond to future Realizes the efficient logistics by establishing land/sea/air integrated logistics system Secures soft-infra for offering highquality logistics service Realizes the advanced logistics system by enhancing green logistics and logistics security Enters into the int l logistics market to respond to changes of future logistics map Strengthens the competitiveness of logistics industry by making market advanced and performing regulatory innovation Discovers smart logistics tech dealing with future and raises informationoriented business

13 Vision, goals, strategies and specific implementation plans Vision Achieves the National Prosperity through logistics Goal Transition 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 & Ecofriendliness (Sustainable tech) Safety first, regulatory innovation & market normalization (including maritime affairs)

14 When notified as national plan, local plans are devised and implemented (2-yr required) 0 National Level Local Level Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Establishment of national logistics basic plan (1yr) Deliberation Decision Notificati on Establishment of local logistics basic plan (1yr) Deliberation Plan & Decision NotificationImplementation projects

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16 Improvement of national logistics competitiveness World s 2 nd best airport, 6 th largest harbor, LPI 23th World s 9 th largest freight volume, 5 th bottoms Contribution to national wealth Accounting for 10% of national GDP(shipping 3%), 5 th largest national income (shipping) Support for the growth of national key infra industries such as shipbuilding, steel, automobile, electronics Foundation for convergent growth connected with 4 th industrial technology No. 1 in the E-commerce market growth rate Commercialization of block chain, IoT, AI, VR & various technologies applied in logistics Establishment of eco-friendly and safe logistics system Contribution to improve the national environment by securing harborbased eco-friendly logistics system

17 Construction of World-class infrastructure 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

18 Response to internal/external environmental changes with redevelopment of harbor and construction of LNG bunkering terminal 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

19 Improvement of national living environment by establishing eco-friendly logistics system

20 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 1.1 Increase of overseas sales of logistics company Share of overseas sales of integrated logistics company % Policy Building global network Avg # of overseas bases of integrated logistics company Region Policy Raising global logistics company Expert logistics company with a sales of 3trillon or more Compa ny Policy Nurturing Korean style GTO # of Korean style overseas GTO ea Harbor logistics planning Building global network # of North Pole Route use in total by logistics company ea Maritime policy Strengthening competitiveness of logistics industry through market advancement and regulatory innovation 2.1 Quality improvement of national logistics service LPI Point Policy Reduction of national logistics cost National logistics cost rate against GDP % Policy Expansion of logistics market Third-party logistics use rate % Policy Increase of productivity of logistics company Operation profit rate of logistics company % Policy Improvement of competitiveness of SM-sized logistics company Sales of company with 300 employees or less KRW 100,000,000 Policy Enhancement of competitiveness of shipping market Bottoms of national shippers Ton 100,000,000 Maritime policy * Discovery of future-oriented smart logistics technology and fostering information business : : : :

21 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

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23 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

24 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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