Korea-China - International Transport Forum

2015 KOTI- ITF/OECD Joint Seminar
“Transport and Trade: Connecting Continents”
Associate Research Fellow / Research Fellow
Department of Logistics Research, KOTI
Co nte nts
1
Inte rna tio na l Tra d e in the No rthe a st Asia
2
Ne e d s fo r Fa c ilita ting Tra d e Lo gistic s
3
Tra d e a nd Tra nspo rt C o rrid o r Ma na ge me nt
4
Tra d e /Tra nspo rt C o rrid o r in the NE Asia
5
Re c o mme nd a tio ns
Inte rna tio na l Tra d e in the No rthe a st Asia
• Trade relations between Korea and its neighbors
(million U.S. dollars)
(million U.S. dollars)
140,000
140,000
120,000
120,000
100,000
100,000
80,000
80,000
60,000
60,000
40,000
40,000
20,000
20,000
,0
,0
<Trade between Korea and China>
Export
Import
<Trade between Korea and Japan>
Data source: Korea International Trade Association, Korea Trade Statistics, corresponding years (http://stat.kita.net)
– Regionally cooperated and integrated in an active way
• Importance of international trade among three countries
– How to facilitate their international trade logistics
Inte rna tio na l Tra d e in the No rthe a st Asia
• Dynamic growth of international trade between Korea,
China and Japan
Trade Volume
in 2004
(million $)
73,954
Trade Volume
in 2012
(million $)
114,724
73,536
151,509
Data source: Korea International Trade Association, Korea Trade Statistics, corresponding years (http://stat.kita.net)
Ne e d s fo r Fa c ilita ting Tra d e Lo g istic s
• Geopolitics among three countries
Europe/
America
Sphere of
Continental
Power
Pan East-Sea Economy
Pan Yellow-Sea Economy
Asia/Africa
Sphere of
Ocean Power
Source: Roh (2013)
Ne e d s fo r Fa c ilita ting Tra d e Lo g istic s
• Increasing container traffic volume in the NE Asia
(Unit: ten thousand TEU)
2006
2007
2008
2009
2010
2011
CAGR
Korea-China*
452
505
499
463
547
625
6.7%
Korea-Japan*
222
230
234
209
246
263
3.4%
China-Japan**
320
343
303
279
298
-
-1.8%
합계
994
1,078
1,036
950
1,090
-
2.3%
Taken from Lee (2012)
Data source: * Ministry of Oceans and Fisheries, Shipping and Port Integrated Data Center (SP-IDC), corresponding years
(http://www.spidc.go.kr)
** Korea Ship Owners’ Association, 2012
– Korea~China
• Transship (36.9%) > Import (35.1%) > Export (28.0%)
– Korea~Japan
• Transship (41.8%) > Import (36.5%) > Export (21.7%)
Ne e d s fo r Fa c ilita ting Tra d e Lo g istic s
• Need to improve logistics efficiency
– Logistics Performance Index (LPI)
Rank
Country
1
Singapore
4.13
4.10
Infrastructure
4.15
2
Hong Kong
4.12
3.97
4.12
4.18
4.08
4.09
4.28
3
Finland
4.05
3.98
4.12
3.85
4.14
4.14
4.10
4
Germany
4.03
3.87
4.26
3.67
4.09
4.05
4.32
5
Netherland
4.02
3.85
4.15
3.86
4.05
4.12
4.15
6
Denmark
4.02
3.93
4.07
3.70
4.14
4.10
4.21
7
Belgium
3.98
3.85
4.12
3.73
3.98
4.05
4.20
8
Japan
3.93
3.72
4.11
3.61
3.97
4.03
4.21
9
U.S.A.
3.93
3.67
4.14
3.56
3.96
4.11
4.21
10
3.90
3.73
3.95
3.63
3.93
4.00
4.19
21
United
Kingdom
Korea, Rep.
3.70
3.42
3.74
3.67
3.65
3.68
4.02
26
China
3.52
3.25
3.61
3.46
3.47
3.52
3.80
LPI
(out of 5.0)
Source: World Bank, 2012
Customs
Int’l
Logistics
shipments Competence
3.99
4.07
Tracking &
Tracing
4.07
Timeliness
4.39
Tra d e a nd Tra nsp o rt Co rrid o r Ma na g e me nt
• Defining a Trade Corridor (TC)
– high volume transport route that links major activity centers
• connects to one or more of the country’s major centers of production or
consumption
– generally used to transport imports and exports from and to
an international gateway or border crossing
– requires large scale investment in infrastructure and services
• 3 major characteristics
– production
– creation of added value
– market access
Tra d e a nd Tra nsp o rt Co rrid o r Ma na g e me nt
• Components of Trade/Transport Corridor
Corridor
management
Institutions
Infrastructure
Seaport/
Economic
cluster
Mode
interface
Border
Economic
cluster
International transit
Services
• Seaport and
shipping
• Access to
port
• Transit
• Customs and
border
management
• Road and Rail Transport
services
Gateway /
Economic
cluster
Dry
port
ICD
National transit
• Customs and
border
management
• Vehicle change
• Customs and
border
management
• Storage
• Consolidation
• Clearing and
forwarding
• Air freight
• Customs and
border
management
• Transit
• Clearing and
Forwarding
Source: Kunaka (2013)
Tra d e a nd Tra nsp o rt Co rrid o r Ma na g e me nt
• Scope of corridor management
– trade and transit agreement
• establishes the conditions under which movements of cargo and transport
take place
• for the effectiveness of trade corridors with cross-border movements
– infrastructure and facilities
• improve capacity & quality : upgrading current assets vs. new construction
• Effectively managed + fully utilized
– transport and logistic services
• variety and quality of services offered to the users
• remove the impediments to the entry of new services
– procedures and regulations
• standardize, simplify, clarify, use ICT, manage risks, harmonize
– security
• ensures efficient and safe movement through countries
– overall corridor performance
• utilization + speed + reliability + economy
Tra d e /Tra nsp o rt Co rrid o r in the NE Asia
• Main supply chains
– Korea-China
• by sea: Busan~Shanghai, Busan~Tsingtao, Busan~Tianjin
• by air: Incheon~Pudong (Shanghai)
– Korea-Japan
• by sea: Busan~Tokyo, Busan~Osaka
• by air:
Incheon~Narita (Tokyo),
Incheon~Kansai
Tianjin
Dalian
Tsingtao
Incheon
Busan
Tokyo
Osaka
Shanghai
Hong Kong
Source: Lee et al. (2013)
Tra d e /Tra nsp o rt Co rrid o r in the NE Asia
• Trade traffic of Busan Port
Tianjin
Tsingtao
Tokyo
Nagoya
Yokohama
Busan
Osaka
Shanghai
Ningbo
International Trade
Volume (unit: TEU)
Data source:
Busan Development Institute, Port and Airport Logistics Statistics 2012, 2013
Import
Export
Tra d e /Tra nsp o rt Co rrid o r in the NE Asia
• Trade traffic of Incheon International Airport
Kansai
Beijing
Tianjin
Incheon
Tokyo
Pudong
Okinawa
Guangzhouwa
Data source:
Busan Development Institute, Port and Airport Logistics Statistics 2012, 2013
International Trade
Volume (unit: TEU)
Import
Export
Tra d e /Tra nsp o rt Co rrid o r in the NE Asia
• Diagnosis of Infrastructure and Services
– long lead time in shipment and transshipment
• still inaccuracy in shipping time (unpredictability)
• unable to meet the needs of fast delivery
• [Example] takes up to 30days to supply auto parts including
loading/unloading in CY and warehousing
– relatively expensive logistics costs
• high costs in operation of logistics facilities, shipment and transshipment,
packaging, and warehousing
– emerging issues in logistics safety and security
• cargo damage and loss
• hazardous goods
• international logistics security
– inadequate response to needs for specific logistics services
• unable to meet the demands on logistics facilities such as exclusive ports
and one-stop distribution centers/complexes, and specialized services
– lack of information on trade counterparts
Tra d e /Tra nsp o rt Co rrid o r in the NE Asia
• Transport and Logistics Cooperation Agreements
Transportation
Marine
Air
Rail
Road
Multimodal
Korea-China
Korea-Japan
sea route agreement applied
principle of equality and mutual
benefit both countries
working-level conference, interim
marine agreement, memorandum of
mutual tax exemption for vessel
operation, port logistics industry
exchange and cooperation, etc.
liberalization, interim agreement on
civil aviation
liberalization, memorandum of
mutual tax exemption for aircraft
operation, aviation business
agreement, etc.
agreement on construction,
development, operation, and
production
rail conference
agreement on construction,
development, operation, and
management
Geneva Convention on road
transport, temporary permission of
fish transportation unites and special
trucks
sea and air multi-truck
transportation (inc. safety standard,
information exchange, Cabotage
ban, insurance, and tax
Pilot project of trailer bilateral traffic
(June 2013)
Tra d e /Tra nsp o rt Co rrid o r in the NE Asia
• Diagnosis on Agreements and Regulations
– for operators, quite significant regulatory burden
– often unequal treatment of operators based on their country of
registration
– some are poorly enforced and unsustainable practices
– some restrictive bilateral agreements leads to market distortions and
cost increase; hinder potential for supply response
 fragmented supply chains
 high costs
 high transit times
 uncertainty in cargo flows
Re c o mme nd a tio ns
• Trade and Transportation Corridor Management
Logistics
Infrastructure
and
Services
Trade and
Transport
Corridor
Performance
Institutions
(inc. regulation)
e
Logistics
Information
Seamless
multimodal
transportation
and logistics
system for
international
trade
in the NE Asia
Re c o mme nd a tio ns
1. Logistics Information Sharing between 3 countries
– Build effective logistics information networks
• NEAL-Net (Northeast Asia Logistics Information Service Network)
• Korea’s SP-IDC + China’s LOGINK + Japan’s COLINS
– Compile transportation and logistics database
• multimodal transportation DB collection and sharing
• creation of transportation information DB for hazardous goods
– Promote data sharing
• increasing logistics gateways which provide logistics information services
• expanding channels of logistics statistics sharing
Re c o mme nd a tio ns
2. Reforming irrational logistics regulations and system
– Remove trade/logistics barrier
• One-stop customs and cargo inspection, standardization, common
insurance, international truck driver’s license, etc.
– Promote bilateral traffic agreements
– Develop realistic and practical bilateral/multilateral agreements
• diversify cooperation channels: logistics minister conference, working
sessions by mode among three countries
• active discussion and sharing ideas
Re c o mme nd a tio ns
3. balancing security and efficiency of logistics
– Minimize trade off between security/safety and economy
– International logistics security seminar among three countries
4. logistics equipment standard
– Facilitate the standardized equipment inc. cargo container
– Cooperative study for enacting standards of equipment and
facilities among three countries
5. Establish sustainable logistics system
– Economy + environment + equity
Re fe re nc e s
1. Korea International Trade Association, each year, Korea Trade Statistics
(http://stat.kita.net)
2.
Roh, Hong-Seung, 2013, “Korea-China intermodal system and significance of rail
ferry system”, presented in a policy conference of National Assembly
3.
Lee, Sung Woo, 2012, “Promoting the Use of Returnable Pallets among China-JapanKorea”, presented in China-Japan-Korea International Conference on Logistics (in English)
4.
Lee, Jee-Sun, Hong-Seung Roh, Choong Yeol Ye, et al., 2013, A Long-term
Development Conception of Korea-China-Japan Trade Corridor , KOTI research series
2013-24, the Korea Transport Institute (with an English abstract)
5.
Kunaka, Charles, 2013, “Facilitating International Trade and Transport: Assessment
Tools and Approaches”, presented 2013 WB-KOTI joint seminar
6.
Busan Development Institute, 2013, Port and Airport Logistics Statistics 2012
Tha nk yo u
For further questions, please contact Jee-Sun Lee
at [email protected]