Currently, most cargos of container transshipment between Busan Port and New Port are transported over land, and the rest is transported by barge.
This study estimated firstly the traffic between those ports through simulations in order to analyze the feasibility of container transshipment by barge. It forecasted annual profitability using determinants to affect on the barge business by the traffic, and then, discussed the feasibility. As the result to examine most factors comprehensively relevant to determine the traffic, the infra-structure investment for the barge, the government support to the business, Busan transshipment traffic, and the rate of shipping companies' using barge were derived as the main factors. Those factors were used to predict the future Busan container transshipment traffic.
In the model designed by those factors, in the first step, this study supposed firstly the flexible scenarios with 50%, 60%, 80%, or 100% transshipment between two ports, and measured the influences of different factors according to the above various scenarios. And then, in the second step, the monthly barge numbers between two ports was calculated, and in the third step, the sales were evaluated by the different traffics and freights scenarios provided the business would be actually operated.
Finally, Net incomes were simulated to analyze the feasibility of different scenarios by various traffics and freights. The net income should be positive to get the feasibility. To achieve this, the minimum traffic should be secured and the lowest freight per TEU should be determined. As the result of the simulations, in the current trend of traffic, the freight should be fixed to 75,000Won per TEU, and in the 50%, 60%, 70, and 80% traffic, it should be 50,000, 45,000, 40,000, and 30,000 respectively, in order to keep positive net income.
What is more, to succeed the business by barge between two ports, its feasibility should be not only obtained, but also the diverse infra-structure prepared to get the timeliness and reliability of the transportation by barge. For example, the barge-only pier, the transportation information system, the fees reduction, and support to shuttle without transportation by barge are needed to be provided.
In conclusion, this study evaluated the feasibility of barge as an approach to develop the smooth articulation between the Busan port and New Port and to attract the container transshipment traffic into Busan while the center of all functions in Busan port is moving from the existing north port to New Port.
Nowadays, the competition for hub port in the north-east Asia is more and more intensive. In this time, the meaning of this study is to show the useful findings able to help to raise the transshipment traffic in Busan. Inaddition, while all countries of the world is controlling CO₂ emissions and emphasizes the green logistics, this study contributed to solve at the same time the problems about the pollution and the efficiency of transportation by reviewing positively the feasibility of barge transportation as an alternative to transportation overland.