In previous posts, I have touched on South Korea's aim to model the country into a logistics hub for Northeast Asia. These posts include:
To maintain momentum with its marketing efforts and towards executing its strategy, South Korea is making moves to further open its economy for the changes necessary. A brief article in Asia Times, via Asia Pulse/Yonhap news services, touches on these moves. In essence:
"South Korea plans to modernize its port facilities and streamline their operations in an effort to attract more foreign shipping lines and become a logistics hub of Northeast Asia, officials said.
"The plan is designed to promote a profitable logistics industry, a turnaround from simply competing with Japan and China for bigger amounts of cargo in Northeast Asia," said Woo Ye-jong, a senior official at the Ministry of Maritime Affairs & Fisheries.
What this means is that South Korea hopes to increase its value-added services versus focusing only on throughput levels--how can we handle goods/services better versus how can we handle more goods/services? For anyone in the supply chain management field, value-added services are what drives profitability, and so that is where I make the link. A simple example is of a warehouse that not only stores product but repackages an international product for local market specifications.
The article outlines some of these value-added services the Korean government plans to put in place:
"Under the plan, the government will revamp ports' infrastructure by setting up an automated operation system, enhancing security standards and lifting a ban on nighttime operations."
The government will also spearhead initiatives for attracting additional investment activity:
"To spur Chinese and Japanese investments in the domestic logistics industry, the government will move to ease regulations on hiring foreign stevedores and to complete clearing sites for cargo terminals in the ports of Busan and Gwangyang ahead of schedule.
"The government will also establish a system on financial aid for mergers and acquisitions among local port operators and try to nurture internationally-renowned logistics firms like Hong Kong's Hutchison Whampoa Ltd. and the Middle East's Dubai Ports World."
As already evident in my posting on the publication of the Northeast Asia report on logistics collaboration:
"Efforts will also be made to hold ministerial-level talks on logistics among South Korea, Japan and China regularly to boost cooperation among the countries. The first round is slated for September this year.
"The ministry said the government will also seek the participation of Russia and the Association of Southeast Asian Nations."
I have a couple articles on hand that discuss in more detail the future of the Korean logistics industry and also the educational system being developed for producing more logistics professionals. These I will be translating from Korean over the next few days and hope to post within the month.