Short Sea Shipping on the West Coast of Korea: Keys to Activating the Shipping Industry in Preparation for Korea Unification Era

Abstract

This study aims to analyze information on vessel traffic between the two Koreas with a probability distribution for each route/vessel type. The study will then conduct an estimate for maritime transport patterns of inter-Korean trade in the future. To analyze the flow of inter-Korean coastal shipping, this study conducted visualization analysis of shipping status between North and South Korea by year, ship type, and port using navigation data of three years from Port Logistics Information System (Port-MIS) sources during 2006 to 2008, which saw the most active exchanges between the two governments. Also, this study analyzes shipping status between the two governments as a probability distribution for each port and provides the prospects for future maritime transport for inter-Korean trade by means of Bayesian Networks and simulation. The results of the analysis are as follows: i) when North-South routes are reopened, the import volume for sand from North Korea will be increased; ii) investment in the modernization of ports in North Korea is required so that shipping companies can generate profit through economies of scale; iii) the number of the operating vessels including container ships between the two governments is expected to increase like when the tensions and conflict on the Korean Peninsula was release, especially between Busan port in South Korea and Nampo port in North Korea; and iv) among container ships, transshipment containers imported and exported through Busan Port will be shipped to North Korea by feeder transportation.

Citation

Lee, S.-W., Shin, S.-H. and Bae, H.-S. (2020), "Short Sea Shipping on the West Coast of Korea: Keys to Activating the Shipping Industry in Preparation for Korea Unification Era", Journal of International Logistics and Trade, Vol. 18 No. 2, pp. 91-105. https://doi.org/10.24006/jilt.2020.18.2.091