Presented by the MOEF, Republic of Korea

2019/20 KSP-ADB Joint Consultation Report India Skill Enhancement to Improve Operations in India

Government Publications Registration Number 11-1051000-001087-01

2019/20 KSP-ADB Joint Consultation Report

India Skill Enhancement to Improve Port Operations in India 2019/20 KSP-ADB Joint Consultation Report

Project Title Skill Enhancement to Improve Port Operations in India

Prepared for The Government of India

In Cooperation with Asian Development Bank (ADB)

Ministry of Commerce and Industry of India

Supported by Ministry of Economy and Finance (MOEF), Republic of Korea

Prepared by KOTRA (Korea Trade-Investment Promotion Agency)

Implemented by Inha University and Chungwoon University Consortium

Project Directors Soo Deuk Sohn, Executive Vice President for Economic Cooperation & Trade Affairs, KOTRA

Chulho Park, Director General, Development Cooperation Office, KOTRA

Project Manager Sunyoung Chang, Deputy Director, Development Cooperation Office, KOTRA

Principal Investigator Minyoung Park, Professor, Inha University

Authors Sangyung Chon, Adjunct Professor, Inha University

Hoon Heo, Professor, Chungwoon University

Hun-Koo Ha, Professor, Inha University

Heechul An, Senior Consultant, TG Co., Ltd.

Jonggyeong Lee, Consultant, TG Co., Ltd

Government Publications Registration Number 11-1051000-001087-01 ISBN 979-11-6490-850-9 (93320) 979-11-6490-851-6 (95320) (PDF) Copyright ⓒ 2020 by Ministry of Economy and Finance, Republic of Korea 2019/20 KSP-ADB Joint Consultation Report Skill Enhancement to Improve Port Operations in India Contents

Chapter 1 Analysis of the Environment and Current Status in India

1. General Status of India···········································································································019 2. Status of in India···········································································································023 3. Port Development Plan···········································································································037 4. Legal and Regulatory Status Regarding the Port Management··········································042 5. Trend Analysis of Ports ···········································································································044 6. Comprehensive Analysis of the Environment and the Current Status·································048

Chapter 2 Skill-Gap Analysis of Korean Port Workers

1. Status of Ports in Korea··········································································································053 2. Current Status of Port – Target Port for the Study·················································063 3. Analysis of Port Productivity in Korea····················································································082

Chapter 3 Nurturing of Port Cargo Handling Workforce in Korea

1. Chronological Changes of Port Skilled Workers in Korea·····················································103 2. Composition and Operation of Port Workers in Korea·························································108 3. Development of Port Workers in Korea and Forecast for Its Future····································116 4. Overview of Port Logistics Workforce Operation in Korea···················································125 5. Education and Training System to Nurture Port Skilled Workers········································130 6. Boosting Growth of Harbor Hinterland Complexes and Creation of Jobs ··························134 7. Institutions to Nurture Port Professionals·············································································138 8. Institutions to Nurture Port Skilled Workers·········································································145

Chapter 4 Policy Implications for Training of Skilled Workers to Advance the Port of India

1. Significance of Advancement of Ports in India······································································171 2. System to Foster Port Workforce in India and Policy Implication from Korea’s Experience·······························································································································176 3. Policy Suggestion for Fostering of Port Skilled Workers······················································182 4. International Cooperation Plan for Fostering Skilled Port Workforce between Korea and India·······················································································································190 5. Review of Korea–India Joint Project·······················································································199 Contents l List of Tables

Chapter 1

India’s Major Economic Index···········································································021
India’s Major Ports·····························································································024
JNPT’s Throughput·····························································································025
JNPT’s Bulk Throughput (by Item)·····································································025
Status of Container Terminals in the JNPT·······················································027
Container Throughput of the JNPT Terminals (2016~2019)····························028
Container Throughput of the JNPT by Terminal (2016~2019)·························029
Type of Berths and Facilities in the Kolkata Port·············································031
Major Equipment in the Kolkata Port·······························································032
Throughput of the KDS & the HDC in the Kolkata Port···································033
Container Throughput of the KDS & the HDC in the Kolkata Port··················033
Primary Components of the Sagarmala Program···········································037
Key Content of “the CCD Plan” under the Sagarmala Program ·····················040
List of Port-related Laws and Regulations·······················································042
Key Trends in Port Development······································································044
Background of Port 4.0·····················································································046

Chapter 2

Port classification in Korea················································································053
Total Throughput of Major Ports in Korea (2011~2019)··································055
Container Throughput at Major Ports in Korea (2009~2019)·························056
Cargo Throughput of Major Ports by Items (2019)·········································057
Number of Stevedoring Companies and Port Workers by Affiliation and by Port (2018)·····································································································059
Trends of Total Number of Workers in Korean Ports (2010-2018)··················060
Trends of Total Number of Workers of Port Labor Union in Korean Ports (2010-2018)·················································································061
Brief History of Incheon Port············································································063
The Incheon Port Authority’s Scope of Business·············································066
Facility Overview and Major Operators at Incheon Port (2019)······················069
Overview of Piers by Usage at Incheon Port (2019)········································070
Major Facilities in Inner Port of Incheon Port··················································071 Contents l List of Tables

Facilities in Inner Port of Incheon Port·····························································072
Facilities in North Port of Incheon Port····························································073
Status of Facilities and Development Plan of New Port at Incheon Port ······074
New Port Hinterland Development Plan at Incheon Port·······························074
Throughput at Incheon Port (2011~2019)·······················································075
Changes in Container Throughput at Incheon Port (2016~2019)··················076
General and Bulk Cargo Throughput at Incheon Port (2016~2019)···············077
Throughput of General and Bulk Cargo by Port at Incheon Port (2016~2019)·······································································································079
Container Terminal at Incheon Port·································································081
Comparison of Yard Equipment in Container Terminals (RMGC vs. RTGC)····081
Main Equipment Features of New Port Container Terminal at Incheon Port······································································································081
Necessary Equipment & Workers by Activities in Container Terminals··········087
Overview of Container Terminals in Incheon Port···········································088
Necessary Equipment & Workers by Activities in General & Bulk Cargo Terminals·································································································090
Overview of Major General & Bulk Cargo Terminals in Incheon Port············090
Index & Calculation Method of Productivity Evaluation of Container Terminals in Incheon Port·················································································094
Productivity of Container Terminals in Incheon Port······································095
Productivity of Per-Capita Port Worker of Container Terminals in Incheon Port······································································································097
Productivity by Major Cargoes of General & Bulk Cargo Terminal in Incheon Port··································································································098
Productivity of Per-Capita Port Worker of General & Bulk Cargo Terminals in Incheon Port·················································································099

Chapter 3

Chronological Changes in Port Cargo Handling Employment Environment of Korea ·················································································································104
Role of Workers in Each Stage of Port Cargo Handling ··································111
Details of Cargo Handling Work Inside the Ship and Beside the Ship···········112
List of Equipment that Generates Demands for Port Skilled Workers···········113
Qualifications of Port Skilled Workers Requiring License Issuance (craftsman’s license) Based on the National Technical Qualification Evaluation ··········································································································121
System to Evaluate Theoretical Job Capability of Craftsmen··························122
Major Operation Capabilities Required for Certification·································123
Talent Nurturing System Customized for Regional and Industrial Needs·····124
Professionals and Skilled Workers in the Field of Port Cargo Handling·········125
Port Skilled Workers Working on a Regular and Daily Basis···························126
Status of Port Workers by Region·····································································129
The Change in the Number of General/Technical Workers of Member Companies in Each Region················································································130
Job Creation Strategy through Utilizing the Harbor Hinterland Complexes in Korea···························································································137
Status of Logistics Education Courses in Graduate Schools···························139
Examples of Logistics Courses in Graduate Schools·······································140
Status of Logistics Education Courses in Universities·····································141
Status of Port Logistics Education Courses based on Industry-Academia Cooperation·······································································································143
Details of the Practical Courses Provided by KMI on Container Terminal Operation···········································································································144
Overview of Operation of Departments in Korea Port Logistics High School·················································································································147
Acquisition of Major Certificates by the Students of Port Logistics High School and Their Career Path after Graduation··············································148
Type of Talent Nurturing of the Department of Logistics Equipment Technology·········································································································149
Type of Talent Nurturing of the Department of Logistics System Operation···········································································································150
Table of Educational Courses of the Department of Logistics Equipment Technology of Port Logistics High School························································150
Table of Educational Courses of the Department of Logistics System Operation of Port Logistics High School··························································152 Contents l List of Tables

Legal Basis for Support in Supply and Demand for Port Skilled Workers······157
Performance in Education and Training of Port Workers in 2019··················157
Performance in Regular Training and Education ············································158
Performance in Regular Education & Training Courses in 2019·····················159
Education & Training Courses Offered by Korea Port Training Institute ·······159
Performance of Individual Education & Training Courses ·····························160
Performance of Education & Training Courses················································162
Performance in IT and Safety Education & Training Course···························163
Performance in Customized Education & Training Course·····························164
Education and Training for Newcomers and Incumbent Workers Offered by Korea Port Training Institute ·························································165
Performance of Education and Training at Korea Port Training Institute by Organization and Region ·····························································166
Participation of Education & Training Offered by Korea Port Institute by Individual Ports··································································································167
Performance in Education & Training Commissioned by Central and Local Governments·····································································································168
Performance in Education & Training Commissioned by Schools··················168
Performance in Education & Training Commissioned by Related Agencies of Korea Port Training Institute························································169

Chapter 4

Policy Implication for Fostering of Port Skilled Workers in India···················181
Korea’s Experience in Fostering of Port Skilled Workers and Capacity Building by Phase ·····························································································186
Key Roles and Responsibilities of Korea Maritime Institute ··························188
Types of Development Funding ·······································································191
Overview of Implementation of KSP ································································194
Application Procedure of KSP···········································································195
Measures for International Cooperation for Fostering of Port Skilled Workers in India································································································197 Contents l List of Figures

Chapter 1 [Figure 1-1] India’s Rank in the ICT Development Index (IDI)·············································023 [Figure 1-2] Location of the JNPT··························································································025 [Figure 1-3] Container Throughput of the JNPT Terminals (2016~2019)····························028 [Figure 1-4] Container Throughput of the JNPT by Terminal (2016~2019)·························029 [Figure 1-5] Location of the Kolkata Port··············································································030 [Figure 1-6] Throughput of the KDS & the HDC in the Kolkata Port···································033 [Figure 1-7] Container Throughput of the KDS & the HDC in the Kolkata Port··················034 [Figure 1-8] Growth of the Automated Port Market····························································046 [Figure 1-9] Survey Result on “a Shortage of Capabilities” due to Port Automation·········047

Chapter 2 [Figure 2-1] Ports in Korea····································································································054 [Figure 2-2] Total Throughput of Major Ports in Korea (2011~2019)··································055 [Figure 2-3] Container Throughput at Major Ports in Korea (2009~2019)·························057 [Figure 2-4] No. of Port Workers by Korean Ports (2018)····················································060 [Figure 2-5] Trends of Total Number of Workers in Korean Ports (2010-2018)··················061 [Figure 2-6] Trends of Total Number of Workers of Port Labor Union in Korean Ports (2010-2018)········································································································062 [Figure 2-7] Mission, Vision and Strategic Tasks of the Incheon Port Authority (IPA)·······065 [Figure 2-8] Organization of IPA···························································································067 [Figure 2-9] Status of Facilities at Incheon Port···································································068 [Figure 2-10] Inner Port at Incheon Port················································································071 [Figure 2-11] South Port at Incheon Port···············································································072 [Figure 2-12] North Port at Incheon Port···············································································073 [Figure 2-13] New Port at Incheon Port··················································································074 [Figure 2-14] Throughput at Incheon Port (2011~2019) ······················································075 [Figure 2-15] Trends of Container Throughput at Incheon Port (2016~2019)·····················077 [Figure 2-16] General and Bulk Cargo Throughput at Incheon Port (2016~2019)···············078 [Figure 2-17] Percentage of General and Bulk Cargo at Incheon Port (2016~2019)···········078 [Figure 2-18] Throughput of General and Bulk Cargo by Port at Incheon Port (2016~2019)·······································································································079 Contents l List of Figures

[Figure 2-19] Percentage of Throughput of General and Bulk Cargo by Port at Incheon Port (2016~2019)·················································································080 [Figure 2-20] Process to Analyze Port Operation Productivity (Skill-Gap) in Korea·············084 [Figure 2-21] Classification of Port Industry and Cargo Handling Activities in Port Area····················································································································085 [Figure 2-22] General Flow of Activities in Container Terminal and Necessary Equipment & Workers·······················································································087 [Figure 2-23] General Flow of Activities in General & Bulk Cargo Terminal and Necessary Equipment & Workers·····································································089 [Figure 2-24] Container Throughput in 2019 compared to the Capacity by Terminal Operators in Incheon Port················································································092 [Figure 2-25] Productivity of Container Terminals in Incheon Port (Berth Productivity & Crane Productivity)····························································································096 [Figure 2-26] Productivity of Container Terminals in Incheon Port (Yard Utilization & Berth Occupancy)······························································································096 [Figure 2-27] Productivity of Per-Capita Port Worker of Container Terminals in Incheon Port······································································································098 [Figure 2-28] Productivity of Per-Capita Port Worker of General & Bulk Cargo Terminals in Incheon Port·················································································100

Chapter 3 [Figure 3-1] The Port Cargo Handling Workflow··································································111 [Figure 3-2] Collaborative Working System for Port Cargo Handling Based on “Gang” System················································································································115 [Figure 3-3] Chronological Changes in Nurturing of Korean Port Skilled Workers and Forecast for the Future······················································································116 [Figure 3-4] The National Competency Standards and Its Application to Nurturing of Port Skilled Workers······················································································119 [Figure 3-5] Proposal to Develop Education and Training Programs in the Field of Port Logistics Based on the NCS·······································································120 [Figure 3-6] Model to Enhance Capability of Port Skilled Workers Based on the SQF·······121 [Figure 3-7] Execution System·······························································································124 [Figure 3-8] Career Paths of the Port Logistics Workforce in Korea···································131 [Figure 3-9] System to Nurture Port Professionals······························································132 [Figure 3-10] System to Nurture Port Skilled Workers···························································133 [Figure 3-11] Incentives Provided by Korea Port Logistics High School·······························146 [Figure 3-12] Mission Statement of Korea Port Training Institute········································154

Chapter 4 [Figure 4-1] Trend in Port Infrastructure Quality Index of India (2006 – 2019)·················173 [Figure 4-2] Comparison of Port Infrastructure Quality Index of India with Other Countries ···········································································································174 [Figure 4-3] Measures for Reinforcing Capacity of Fostering Port Skilled Workers in India···············································································································183 [Figure 4-4] Concept to Improve the System to Nurture Port Skilled Workers and to Introduce Education and Training Infrastructure············································185 Contents l List of Abbreviations

Abbreviation Full Description

ACT Automated Container Terminals

ADB Asian Development Bank

AGV Automated Guided Vehicle

AI Artificial Intelligence

APSL Asia-Pacific School of Logistics

ARMGC Automated Rail Mounted Gantry Crane

ASSOCHAM The Associated Chambers of Commerce and Industry of India

ATC Automated Transfer Crane

BJP Bharatiya Janata Party

BMCT Bharat Mumbai Container Terminal, PSA-Mumbai

BPCL Bharat Petroleum Corporation Limited

CAGR Compound Annual Growth Rate

CCD Coastal Community Development

CEMS Center of Excellence in Maritime & Shipbuilding

CEU Coastal Economic Units

CEZ Coastal Economic Zones

CFS Container Freight Station

CICMT Center for Inland and Coastal Maritime Technology

CIDCO City and Industrial Development Corporation of Maharashtra Ltd.

CONCOR Container Corporation of India Ltd

COVID-19 Coronavirus Disease 2019

CY Container Yard

DAC Development Assistance Committee

DBFOT Design, Build, Fund, Operate and Transfer

DFC Dedicated Freight Corridor

DMIC The Delhi-Mumbai Industrial Corridor Project Abbreviation Full Description

DMUs Decision Making Units

DWT Deadweight Tons

E/H Empty Handler

EDCF Economic Development Cooperation Fund

EPS Employment Permit System

FTA Free Trade Agreement

FY Fiscal Year

G/C Gantry Crane

GBP Gross Berth Productivity

GBT Gross Berth Time

GDP Gross Domestic Product

GNP Gross National Product

GP Gross Productivity

GP/NP, The Gap Between / The New Port

GTICI Gateway Terminals India, GTI-APM Terminals

GTO Global Terminal Operator

HDC Haldia Dock Complex

HJIT Hanjin Incheon Container Terminal

IBEF India Brand Equity Foundation

IBRD International Bank for Reconstruction and Development

ICD Inland Container Depot

IDI ICT Development Index

IIT Indian Institutes of Technology

ILO International Labour Organization

IMC Inter-Ministerial Committee

IMD Institute for Management Development Contents l List of Abbreviations

Abbreviation Full Description

IMF International Monetary Fund

IMU Indian Maritime University

INC Indian National Congress

IPA Indian Port Association

IPA Incheon Port Authority

IPOC Incheon Inner-Port Operation Com.

IPTI Indian Port Training Institute

IRS Indian Register of Shipping

ITC International Telecommunication Union

ITeS IT-Enabled Services

IWAI Inland Waterways Authority of India

IWT Inland Waterway Transport

JNPCT Jawaharlal Nehru Port Container Terminal

JNPT Jawaharlal Nehru Port

KDS Kolkata Dock System

KMI Korea Maritime Institute

KOGAS Korea Gas Corporation

KOICA Korea International Cooperation Agency

KOPLA Korea Port Logistics Association

KoPT Kolkata Port Trust

KOTRA Korea Trade-Investment Promotion Agency

KPD Katpadi Jn Railway Station

KPI Key Performance Indicator

KPTi Korea Port Training Institute

KRW Korean won

KSP Knowledge Sharing Program Abbreviation Full Description

LO/LO Lift On/Lift Off

LOA Length Over All

LSC Logistic Sector Skill Council In India

LSC Logistic Sector Council

Mhz Mega Herz

MMTPA Million Metric Tonne Per Annum

MOF Ministry of Maritime & Fisheries (MOF)

MoL&E Ministry of Labor & Employment

MoS Ministry of Shipping

MoU Memorandum of Understanding

MSDC Multi Skill Development Centers

MSDC Maharashtra State Dental Council

MSDE Ministry of Skill Development & Entrepreneurship

NBP or VR Net Berth Productivity

NCS National Competency Standards

NGO Non-Governmental Organization

NHAI National Highway Authority of India

NP Net Productivity

NSD Netaji Subhas Dock

NSDC National Skill Development Corporation

NSICT Nhava Sheva International Container Terminal

NSIGT Nhava Sheva (India) Gateway Terminal

NTCPWC National Technology Center for Ports, Waterways and Coasts

ODA Official Development Assistance

OECD Organization for Economic Cooperation and Development

ONE Ocean Network Express(Global Shipping Company) Contents l List of Abbreviations

Abbreviation Full Description

PMKK Pradhan Mantri Kaushal Kendra

POL Petroleum, Oil and Lubricants.

PPP model Public-Private Partnership Model

PSA Port of Authority Singapore

R/S Reach Stacker

RMGC Rail Mounted Gantry Crane

RMQC Rail Mounted Quay Crane

RO/RO Roll-On/Roll-Off

RSC Regional Skills Council

RTGC Rubber Tire Gantry Crane

SCM Supply Chain Management

SNCT Sunkwang New Container Terminal

SPV Special Purpose Vehicles

SQF Sectoral Qualification Framework

SSC Sector Skill Councils

STS Ship-to-Shore

T/C Transfer Crane

TEU Twenty-Foot Equivalent Unit

TRAI Telecom Regulatory Authority Of India

UGC University Grants Commission

WEF World Economic Forum

Y/C Yard Chassis

Y/T Yard Tractor

YOY Year-Over-Year

01 CHAPTER

Analysis of the Environment and Current Status in India

Lead Author : Minyoung Park Second Author : Heechul An

1. General Status of India 2. Status of Ports in India 3. Port Development Plan 4. Legal and Regulatory Status Regarding the Port Management 5. Trend Analysis of Ports 6. Comprehensive Analysis of the Environment and the Current Status Analysis of the Environment and Current Status in India

Lead Author : Minyoung Park Second Author : Heechul An

1. General Status of India

India is the world’s largest democracy with a population of 1.3 billion and the number of voters reaching 900 million. Also, it is the 7th biggest country in the world boasting the land area 33 times bigger than that of and blessed with diverse climates and races. India has 21 official languages aside from Hindi and English, and a variety of religions are 019 CHAPTER practiced in the nation such as Islam, Christianity and Buddhism though most of Indians practice Hinduism. 01 Analysis of the Environment and Current Status in India

Indians have maintained the national and social harmony and identity through embracing diversity while priding themselves on thousands of years’ history. In political terms, India, quite literally, is the largest democracy on earth, and there is a broad understanding of free democracy in India despite a high illiteracy rate and a significant gap between the rich and the poor. Most importantly, the citizens are patient and generous, and their virtuous nature has contributed to the establishment of democracy.

1.1. Political Status

India gained independence from the United Kingdom in 1947, and its political system has been set up quite recently. A two-party system, composed of Indian National Congress (INC) and Bharatiya Janata Party (BJP), has been established since 1991, and the parties are divided into national and regional ones.

The 16th general election in 2014 earned the distinction of recording the highest voter turnout ever at 66.4% with 120 million first-time youth voters and urban middle- class voters out of 814.5 million voters practicing their right. The high voter turnout demonstrates that the Indian youth, not class conscious but economically savvy, are now largest economy overtaking France with the nominal GDP of $2.76 $2.76 of GDP nominal the with France overtaking economy largest th Also, India is heavily reliant upon imported mineral resources including oil, and it has including oil, and it has resources Also, India is heavily reliant upon imported mineral The Modi administration has gone beyond the service- and agriculture-centric industrial has gone beyond the The Modi administration 1.2. Economic Status with its steady economic growth and stable India has emerged as “the Next China” The Modi administration entered a relatively stable period in 2017. Indeed, the ruling ruling the Indeed, 2017. in period stable relatively a entered administration Modi The chronically suffered from current account deficit; however, the Modi administration which business- a fostered and corruption eliminated aggressively has 2014 in power in came 20% or more, but as of FY 2016-17, India’s industrial structure primarily consisted of service 20% or more, but as of FY 2016-17, India’s industry (53.66%), agriculture (17.32%) and manufacturing (16.57%) with the manufacturing population works merely taking up a small slice of the pie. Meanwhile, over 60% of the to the GDP is only 17.32%; against this contribution in agriculture though the industry’s to high value-added industries. its workers need of transferring India is in urgent backdrop, structure and proactively fostered the manufacturing industry with the “Make in India” in India” manufacturing industry with the “Make structure and proactively fostered the through reviving the manufacturing industry. initiative to achieve economic development share of the national GDP to The mid-term goal is to increase the manufacturing industry’s 2018, making it the 6 the it making 2018, including the IMF forecasted India to achieve a trillion. In 2018, global economic institutions indeed, the IMF announced its growth forecast of 7 to 8% growth for the upcoming decade; prospect. India as 7% in July 2019, offering a bright macro-economics. According to the IMF (2019), India’s nominal GDP was $2.97 trillion in was $2.97 trillion in nominal GDP India’s to the IMF (2019), macro-economics. According and casteism and build a modern India by 2022. Also, the Bharatiya Janata Party (BJP), the Janata 2022. Also, the Bharatiya build a modern India by and casteism and from April election held victory in the 17th general claimed an overwhelming ruling party, ruling party secured 20 more seats in 19, 2019 and managed to retain power. The 11 to May and gaining expectation everybody’s election exceeding comparison to the previous general a powerful force to conduct state affairs. party won the state elections in the central regions by a landslide in March 2017. Modi in March 2017. Modi a landslide regions by elections in the central party won the state 2017, in speech Day Independence his in 2022” by India “New of vision the achieve to vowed terrorism, communalism corruption, overcome five obstacles: poverty, and he pledged to emerging as the driving force of the nation’s politics and economy. Also, Prime Minister Minister Prime Also, economy. and politics nation’s the of force driving the as emerging economic reformation has actively pursued election, general winner of the 2014 Modi, the business environment an enhanced and creating out corruption rooting through policies India as a global for the future of out the blueprint and he has laid inauguration, since his in India” initiative. the “Make following China through launching manufacturing hub 020 Skill Enhancement to Improve Port Operations in India friendly environment through attracting foreign investment and promoting export while suppressing import.

India’s Major Economic Index

Economic Index 2015 2016 2017 2018 2019

Economic Growth (%) 8 8.17 7.17 6.81 6.12

Nominal GDP ( $ Billions) 2,103.59 2,289.75 2,652.25 2,718.73 2,935.57

GDP per capita (PPP, $) 6,259.80 6,752.48 7,277.04 7,858.69 8,378.38

Nominal GDP per capita ($) 1,639.69 1,761.63 2,014.01 2,037.69 2,171.64

Govt debt (% of GDP) 68.78 67.67 67.83 68.05 69.04

Inflation rate (%) 4.9 4.5 3.6 3.43 3.44

Exports ($ Millions) 267,348.26 264,534.49 299,700.78 324,479.50 -

Imports ($ Millions) 392,748.09 361,595.99 446,900.75 513,645.92 -

Trade Balance ($ Millions) -125,399.83 -97,061.50 -147,199.97 -189,166.42 -

Foreign Exchange Reserves ($ Millions) 335,180.71 341,988.96 390,244.53 375,364.90 - 021

Interest Rate (%) 6.75 6.25 - - - CHAPTER

Exchange Rate (Home Currency) 64.15 67.2 65.12 68.39 70.42 01

Source: IMF, 2019 Analysis of the Environment and Current Status in India

1.3. Social Status

India’s social structure is complex with heterogeneity and diversity as a result of a variety of races, languages, religions, a huge gap between the rich and the poor, a high illiteracy rate and a religious and social status system throughout its vast land. Casteism, in particular, has been accepted as the public’s life rules for thousands of years, and it still affects people’s lives though its influence has diminished due to a law banning the Caste system, modernization and education.

India’s basic policy of education is to bridge the educational gap amongst regions, provide equal educational opportunities for all classes and nurture talent fulfilling the nation and society’s needs; to do so, the central and state governments have provided free and compulsory education for children who are 14 years old or younger as well as language education covering English, Hindi and each state’s official language and have invested 6% of the GNP in education. India’s school system provides a 15-year curriculum (10+2+3), and the central government is in charge of 13 universities including University of Delhi and Jawaharlal Nehru University, 13 Indian Institutes of Technology (ITT) and primary research The communication infrastructure market is led by Samsung (14.1%) followed by Indus Samsung (14.1%) followed by is led by market The communication infrastructure India’s internet market is primarily taken up by mobile internet users due to the number mobile internet users due to the up by is primarily taken internet market India’s Bharti Airtel, a company with the biggest market share in the mobile industry, attempted to share in the mobile industry, with the biggest market Bharti Airtel, a company The TRAI’s study shows that the number of wired and wireless communication service India ranks second in the number of mobile subscribers and third in the number of number of mobile subscribers and third in the number of second in the India ranks 1.4. Technological Status 1.4. Technological Approximately 26% of India’s population suffers from extreme poverty; thus, India has Towers Towers (6.75%), Micromax (5.92%), Microsoft (Nokia) (3.9%) and Huawei (3.44%), and the advance in all relevant industries. has continued to market of smart-phone, 3G and 4G subscribers on the rise; indeed, seven out of eight internet users of smart-phone, 3G and 4G subscribers on the rise; indeed, seven out of eight are mobile-based users. advance into the 4G market on the 2,300 Mhz band in Kolkata at the end of 2012, but it had to to at the end of 2012, but it had on the 2,300 Mhz band in Kolkata advance into the 4G market lack of infrastructure; and expansion plan due to technological constraints postpone its market 6 through began providing 4G services in 296 cities starting from August however, the company 2015. its technology and service partnership with China Mobile concluded in March subscribers exceeds one billion, and the number of internet users, thanks to the increase the number of internet users, thanks to the increase subscribers exceeds one billion, and million in FY 2006-2007 to 267 from 8.6 has spiked in the number of mobile internet users, of 53.64%. million in FY 2014-2015, recording a CAGR internet users in the world. According to a report released by Regulatory Telecom Authority of India (TRAI), India’s regulatory authority of communication, in August 2015, the 2015. reached 988.69 million as of August accumulated number of mobile subscribers in 1977, and India is still working on wiping out malaria, heartworms, leprosy, cholera and cholera heartworms, leprosy, is still working on wiping out malaria, in 1977, and India tuberculosis. expanded hygiene and health-care benefits for those in rural areas and thepoor to enhance years 52 from increased has expectancy life average the Consequently, health. public’s the from has dropped mortality rate past three decades, and the infant to 61.7 years in the has In addition, the government 1,000 in 2003 to 42 infants in 2012. 59.56 infants out of executed special measures to fight off contagious diseases; in fact, smallpox waseradicated institutes through the University Grants Commission (UGC), and other aspects of education and other aspects Commission (UGC), Grants through the University institutes the state are managed by and universities and high schools middle elementary, including governments. 022 Skill Enhancement to Improve Port Operations in India According to the International Telecommunication Union (ITC)’s ICT Development Index, India ranked 138th in 2016 and 134th in 2017, demonstrating the nation’s ICT infrastructure such as the wired and wireless communication infrastructure, the number of subscribers and the number of internet users has advanced.

[Figure 1-1] India’s Rank in the ICT Development Index (IDI)

IDI 2017 Rank IDI 2016 Rank 2016 Fixed-telephone subscriptions India 2017 134 138 Mean years of schooling Mobile-cellular subscriptions 1 Tertiary enrolment International internet bandwidth IDI 2017 Value IDI 2016 Value 0.8 per internet user 0.6 3.03 2.65 0.4 Secondary enrolment Households with computer 0.2 Regional 0 Active mobile-broadband Households with internet IDI 2016 25 subscriptions Rank Fixed-broadband subscriptions Internet users

Source: The Official Website of the ITU (https://www.itu.int/net4/ITU-D/idi/2017/index.html)

Also, India’s IT industry, categorized into IT and IT-enabled services (ITeS), has advanced through providing IT-related services to western countries as an outsourcing destination since its opening of economy in 1991. The total size of the IT market is approximately $181 023 CHAPTER billion as of FY 2018-2019, and it is one of the major export-oriented industries, greatly

contributing to the services surplus. 01 Analysis of the Environment and Current Status in India

The Modi administration has pursued the digital economy through the “Digital India” initiative: driving the advancement of semiconductor-related sectors such as smart-phones, smart-watches and tablets; fostering startups in the cutting-edge sectors through providing the internet access to those in under-developed areas and setting up research parks at major universities; and bringing about the knowledge economy equipped with digital capabilities through creating a paperless congress by digitizing functions of states and computerizing the court through introducing E-courts.

2. Status of Ports in India

2.1. India’s Major Ports

The Indian coastline runs over a distance of 7,500 km, and there are 12 major ports on the long coastline including the Jawaharlal Nehru Port (hereinafter referred to as the JNPT), the Chennai Port, the Cochin Port, the Kolkata Port, the Mumbai Port and the Visakhapatnam Port. 2020* 30,915 13,415 51,346 93,387 60,739 26,554 39,804 29,933 28,020 56,640 14,615 38,392 101,965 2019* 94,545 35,519 15,219 50,240 89,982 54,729 28,649 44,435 28,623 26,148 58,604 15,290 37,123 2018 42,055 26,897 62,828 63,537 30,446 51,881 36,583 29,138 66,004 17,390 40,496 110,099 102,013 Throughput* (Unit: 1,000 t) Throughput* 2017 39,945 33,181 63,049 88,955 61,020 30,020 50,214 38,463 25,007 62,151 16,810 34,141 105,442 Goa Kerala Odisha Gujarat Karnataka Tamil Nadu Tamil Nadu Tamil Nadu Tamil Maharashtra West Bengal West Bengal West Maharashtra Andhra Pradesh Andhra Location (State) Port JNPT COCHIN Kolkata Dock System Kolkata MUMBAI PARADIP Haldia Dock Complex CHENNAI MORMUGAO VISAKHAPATNAM NEW MANGALORE NEW DEENDAYAL(KANDLA) V.O. CHIDAMBARANAR V.O. KAMARAJAR(ENNORE) (JAWAHARLAL NEHRU) (JAWAHARLAL The Official Website of Indian Port Association (IPA) (http://ipa.nic.in) (IPA) Website of Indian Port Association The Official :  2.2. JNPT port located in Navi Mumbai on representative container handling The JNPT is India’s Since the JNPT, the most representative container port in India, and the Kolkata Port Port representative container port in India, and the Kolkata the most Since the JNPT, Kolkata which increased by approximately 7.4% compared to the previous year. which increased by are in operation. The port’s maximum draft is 14.5 m, and it primarily handles POL, maximum iron draft ore, The port’s are in operation. coal, fertilizer, rice, sugar, and liquid substances. There are five terminals at the port, and The the government. and one terminal is managed by four of them are privately operated, port is capable of handling vessels with a capacity of up to 12,500 TEUs, and it is connected to over 200 ports across the globe. As of FY 2018, the port processed 5.13 million TEUs of cargo, the West Coast of Maharashtra. Since May 26, 1989, the Jawaharlal Nehru Port Trust has 10 docks, in total, managed the port using a PPP model within a landlord port structure, and (including the Haldia Port), a bulk port, have been selected as the subjects of this project, the of these two ports. authors conducted an in-depth analysis Source April to January. and that of 2019 and 2020 was accumulated from April to March, from of 2017 and 2018 was collected The throughput

India’s Major Ports Major 1-2> India’s

Source: Google Map and the Official Website of IPA (http://ipa.nic.in)

JNPT’s Throughput

Total Throughput (Unit: Container Throughput Bulk Throughput Category million tons) (Unit: TEUs) (Unit: million tons) 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20

Import 38.98 40.21 2,562,218 2,505,849 6.39 6.54 025 Export 30.98 26.75 2,507,240 2,404,134 2.20 0.97 CHAPTER

Trans- 0.75 1.49 63,816 126,466 - - shipment 01

Total 70.71 68.45 5,133,724 5,036,449 8.59 7.51 Analysis of the Environment and Current Status in India

Source: The Official Website of the JNPT (http://jnport.gov.in/operating_performance_profile)

JNPT’s Bulk Throughput (by Item)

Total Throughput Rate of Change Item (Unit: tons) YOY 2018-19 2019-20 (Unit: %)

Liquid Bulk 7,563,810 6,450,361 -14.72

Cement and Other Dry Bulk Cargo 997,472 1,017,571 +2.01

Break Bulk 30,547 41,117 +34.60

Total 8,591,829 7,509,049 -12.60

Source: The Official Website of the JNPT (http://jnport.gov.in/operating_performance_profile)

The JNPT is the most modern port amongst the major ports in India, and it has continued to evolve. It was initially constructed as a satellite port of the Mumbai Port to ease the traffic jam at the latter, but today the JNPT has become the biggest container port nationwide, and it has achieved the most rapid growth. A massive infrastructure development project to build roads to swiftly transport cargo within the port and expand the Dedicated Freight 1 The GTICI is a joint venture between APM Terminals, a GTO, and the Container and the Container a GTO, is a joint venture between APM Terminals, The GTICI The NSICT, the first containerThe terminalNSICT, to be built through an international tender with a The JNPCT is the JNPT’s own container terminal. The port’s total quay length is 680 m, m, 680 is length quay total port’s The terminal. container own JNPT’s the is JNPCT The The JNPT consists of one petroleum terminal and five container terminals: the JNPCT container terminals: the JNPCT of one petroleum terminal and five The JNPT consists 2.2.1. Status of Container Terminals 2.2.1. Status of Container The JNPT, the biggest container port equipped with modern facilities, has a high high a has facilities, modern with equipped port container biggest the JNPT, The Edited and rephrased the content from http://www.jnport.gov.in/terminals the content from Edited and rephrased RMGCs. The yard area is 47.21 ha, and the processing capacity is 1.8 million TEUs. 1 capacity is 1.2 million TEUs. Corporation of India Ltd (CONCOR), and it has been in operation since October 2006. The terminal’s total quay length is 712 m and draft is 15 m. It has 10 RMQCs, 40 RTGCs and 3 30-year license agreement on a BOT basis, has been operated since 1999. At first,P&O Ports, NSICT the currently but terminal, the managed (GTO), operator port global Australian an Its belongs total to length quay DP-World. is 600 m and maximum is draft 15 m; the terminal is equipped with 8 RMQCs, 29 RTGCs and 3 RMGCs. Its yard area is 28.54 ha and processing million TEUs. Also, the SDB, capable of handling 183 m vessels, with the total quay length of from September 2020 starting separately of 10 m is operated 445 m and the maximum draft to handle small vessels. There are 3 RMQCs at this berth, and its capacity is 150,000 TEUs per year and 2.77 million tons. Mumbai Container Terminal, PSA-Mumbai). Mumbai Container Terminal, and its draft is 15 m; it is equipped with 9 RMQCs, 27 RTGCs and 5 RMGCs. The yard area its processing capacity is 1.35 berth area is 61.49 ha, and including the shallow draught (Jawaharlal Nehru Port Container Terminal), the NSICT (Nhava Sheva International International Sheva (Nhava NSICT the Terminal), Container Port Nehru (Jawaharlal Container Terminal, NSICT-DP World), the GTICI (Gateway Terminals India, GTI-APM (Bharat and the BMCT Terminal) (Nhava Sheva (India) Gateway the NSIGT Terminals), demand for personnel such as crane operators, crane repairmen, truck drivers and other and other repairmen, truck drivers crane operators, such as crane demand for personnel maintenance staff, but since there is a shortage of skilled port workers, unskilled workers at the JNPT. are filling the positions Corridor (DFC) is in progress; the port is planning on doubling its capacity from 4.8 million capacity from 4.8 on doubling its the port is planning (DFC) is in progress; Corridor construction of the infrastructure the second phase 2022 through by TEUs million TEUs to 9.6 port in terms of capacity. 33rd the world’s becoming project, thereby 026 Skill Enhancement to Improve Port Operations in India The construction of the NSIGT was privately funded, and it commenced its operation in 2016. The yard space is 27 ha, and the processing capacity is 800,000 TEUs. The terminal’s total quay length is 330 m and maximum draft is 15 m. It is equipped with 4 RMQCs, 16 RTGCs and 3 RMGCs.

The BMCT, a subsidiary of the Port of Singapore Authority (PSA), was developed on the Design, Built, Fund, Operate and Transfer (DBFOT) basis for the concession period of three decades. The construction plan of the BMCT consisted of two phases, and the terminal began its Phase-I operation in 2017. This is the biggest single container terminal with the total quay length of 1,000 m and the draft of 16.5 m. There are 12 RMQCs, 36 RTGCs and 4 RMGCs at the terminal. Its yard area is 90 ha, and its processing capacity stands at 2.4 million TEUs. Once the Phase-II construction is completed, the terminal’s equipment and facilities will be doubled, and the total capacity will reach 4.8 million TEUs.

Aside from container terminals, the Bharat Petroleum Corporation Limited (BPCL) has been operated since October 2002 at the JNPT.

027

The aforementioned container terminals have the following in common: they use fixed CHAPTER RMGCs that can effectively move around within a limited space as their container yard equipment, and they utilize RTGCs in spacious rail yards and on lead-in lines. 01 Analysis of the Environment and Current Status in India

Status of Container Terminals in the JNPT

GTICI BMCT (PSA Mumbai) NSICT-DP Category JNPCT (GTI-APM NSIGT World Terminal) Phase 1 Final

Quay Length (m) 680 600 712 330 1,000 2,000

Draft (m) 15 15 15 15 17 17

Capacity (million TEUs) 1 1 2 1 2 5

Reefer Plugs (Nos.) 576 772 880 320 1,620

RMQCs 9 8 10 4 12 24

RTGCs 27 29 40 16 38 72

RMGCs 5 3 3 3 4 8

Yard Area (ha) 61.491) 25.84 47 27 90 200

Tractor Trailers 1002) N.A. N.A. N.A. N.A. N.A.

Reach Stackers 112) 112) N.A. N.A. N.A. N.A.

Empty Handlers N.A. N.A. N.A. N.A. N.A. N.A.

Max LOA (m) 370 370 370 370 N.A. N.A.

Note 1) Including Shallow Berth area, Note 2) Hired Source: JNPT 3.8% 3.6% 2.9% 41.7% CAGR 5,200 4,900 4,600 4,300 4,000 (000 TEUs) % 2.5% 100% 49.8% 47.7% 126 2,404 2019 5,036 126 5,036 2,506 2,404 Total(Right) 000 TEUs 2,506 % 64 1.2% 100% 49.9% 48.8% 2018 T/S(Left) 2,507 5,133 64 5,133 2,562 2,507 000 TEUs 2,562 % 63 1.3% 100% 49.9% 48.8% 4,833 Export(Left) 2017 2,359

2 63 2,411 2,359 4,833 2,411 000 TEUs % 44 Import(Left) 1.0% 100% 50.0% 49.0% 4,500 2016 2,205 44 2,250 2,205 4,500 2,250 000 TEUs 0 500 3,000 2,500 2,000 1,500 1,000 (000 TEUs) JNPT : 

T/S The GTICI takes up nearly 40% of the total terminal throughput; meanwhile, the JNPCT’s the total terminal throughput; meanwhile, the JNPCT’s up nearly 40% of takes The GTICI 2.2.2. Container Throughput 2.2.2. Container The JNPT’s container throughput increased from 4.5 million TEUs in 2016 to 5.04 Total Export Import period. Such changes appear to be linked to GTOs, armed with a global network, building a global network, building armed with to GTOs, period. Such changes appear to be linked a well as as top-notch facilities and equipment with equipped terminals operating and the of one with BMCT, PSA’s the when particular, In system. management cutting-edge 2 http://www.jnport.gov.in/operating_performance_profile the content from Edited and rephrased share has continuously dropped from 34.1% in 2016 to 14.4% in 2019, and the NSICT and the NSICT share has continuously dropped from 34.1% in 2016 to 14.4% in 2019, during the same exhibited the same pattern with its share decreasing from 16.2% to 10.6% Source (2016~2019) of the JNPT Terminals 1-3] Container Throughput [Figure throughput used to be around 1%, but it jumped to 2.5% in 2019. be around 1%, but it jumped to 2.5% throughput used to (2016~2019) of the JNPT Terminals 1-6> Container Throughput

Container Throughput of the JNPT by Terminal (2016~2019)

2016 2017 2018 2019 CAGR 000 TEUs % 000 TEUs % 000 TEUs % 000 TEUs %

JNPCT 1,534 34.1% 1,482 30.7% 1,056 20.6% 724 14.4% -22.1%

NSICT 729 16.2% 641 13.3% 561 10.9% 531 10.6% -10.0%

GTICI 1,793 39.8% 2,028 42.0% 2,048 39.9% 1,985 39.4% 3.5%

NSIGT 445 9.9% 659 13.6% 948 18.5% 987 19.6% 30.4%

BMCT 0 0.0% 23 0.5% 520 10.1% 809 16.1% -

Total 4,500 100% 4,833 100% 5,133 100% 5,036 100% 3.8%

Source: JNPT

[Figure 1-4] Container Throughput of the JNPT by Terminal (2016~2019) 029

(000 TEUs) CHAPTER 2,500 01 2,028 2,048 1,985

2,000 Analysis of the Environment and Current Status in India 1,793

1,534 1,482 1,500

1,056 987 1,000 948 809 729 724 641 659 561 520 531 500 445

0 23 0 2016 2017 2018 2019 JNPCT NSICT GTICI NSIGT BMCT

2.3. Kolkata Port

The Port of Kolkata, located in the State of West Bengal in the North-Eastern region of India, has 46 small docks and is operated in two parts: the Kolkata Dock System (KDS) and the Haldia Dock Complex (HDC).

The KDS is the only riverside harbor in India, and the Kolkata Port Trust (KoPT) commissioned Bharat Kolkata Container Terminals Pvt. Ltd. to provide manpower and operate equipment, thereby outsourcing the operation and management of the KDS. The Kolkata Dock System (KDS) Dock System Kolkata Haldia Dock Complex (HDC) Google Map and the Official Website of IPA (http://ipa.nic.in) Website of Google Map and the Official :  The HDC, a satellite port of the KDS, is operated by the KoPT using a PPP model within In addition, the KDS has five dry docks, so vessels calling on the Port can be repaired repaired be can Port the on calling vessels so docks, dry five has KDS the addition, In located in an inland area, it is confronted with an array of issues as deposited sand brings of issues as deposited sand brings located in an inland area, it is confronted with an array and the there are 12 docks in operation, down water levels and creates sandbars. Today, handles iron ore, coal and metal cargo. the KDS primarily HDC like Source a landlord port structure like the Since JNPT. the HDC is adjacent to a shore, unlike the KDS [Figure 1-5] Location of the Kolkata Port [Figure and maintained; it is also equipped with ship-building facilities. The KDS handles not only only not handles KDS facilities. The ship-building with equipped also is and maintained; it to respond to an increasing demand container cargo, and it now needs bulk cargo but also bulk and container cargo due to the complex port accommodating both of manpower as a in the volume of the latter. recent spike KDS consists of two major facilities: Kindderpore Docks and Netaji Subhash Docks. The KDS, Subhash Docks. Docks and Netaji Kindderpore of two major facilities: KDS consists cooking coal, fertilizer and handles iron ore, in India, primarily major bulk ports one of the oil. 030 Skill Enhancement to Improve Port Operations in India The KDS and the HDC are working on various projects such as developing a multi- purpose dock nearby the HDC, constructing three docks at the Diamond Harbor and building three docks in the Saugor area to develop the Port. As the KDS and the HDC continue to advance, there is a growing need for manpower to operate the Port. The KDS, in particular, has vessel repair and maintenance as well as ship-building facilities, so there is a high demand for vessel painters, machinists and metal technicians, welders, drilling and cutting technicians, ship-fitters and electricians.

2.3.1. Status of Port Facilities

Kindderpore Docks at the KDS are home to 19 berths of which 16 are general cargo berths and three are passenger and coastal berths, and the total quay length is 2,956 m. Netaji Subhash Docks house five container berths, three general cargo berths, one liquid bulk berth and one heavy lift cargo berth with the total quay length of 1,850 m.

The HDC has 17 berths in total: 10 multi-purpose berths, two container & general cargo berths, two mechanized berths handling coal and three liquid cargo berths; the total quay 031 length is 4,251 m. CHAPTER

Type of Berths and Facilities in the Kolkata Port 01 Analysis of the Environment and Current Status in India Type of Berth No. of Berths Depth(m) Quay Length(m)

General Cargo 16 8.0~8.7 2,520 Kindderpore Passenger & Coastal 3 8.0~8.6 436 Docks Total 19 2,956

Container 5 8.0~8.7 963 KDS General Cargo 3 7.2~8.5 535

Netaji Subhash Liquid Bulk 1 8.0 152 Docks Heavy Lift Cargo & General 1 8.2 200 Cargo

Total 10 1,850

Multipurpose 10 10.0~12.2 2,317

Container & General Cargo 2 12.2 440

Liquid 2 12.2~12.5 675 HDC Liquid & Chemicals 1 12.2 290

Mechanized Berth 2 12.2 529

Total 17 4,251

Source: Rephrased the content from "Administrative Report 2018-2019", pp.78-80, Kolkata Port Trust - - NIL NIL NIL NIL NIL NIL NIL Capacity (Tons) Hired by Port Hired by - - NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL No. 3 5 20 45 40 40 40 30 13 10 200 35.5 Capacity (Tons) Owned by Port Owned by 4 2 1 1 2 1 2 1 1 9 1 8 No. RTGC RTGC RMQC Tractor Equipment Wharf Crane Mobile Crane Reach Stacker Fork Lift Truck Fork Rephrased the content from "Administrative Report 2018-2019", pp.83-84, Kolkata Port Trust Report 2018-2019", pp.83-84, Kolkata Port Trust "Administrative the content from Rephrased :  As of 2018, the total import throughput was 49.224 million tons, and 60.5% of the the of 60.5% and tons, million 49.224 was throughput import total the 2018, of As 2.3.3. Status of Throughput reached total throughput including the container throughput Port’s In 2018, the Kolkata 2.3.2. Status of Equipment 2.3.2. Status 10 four There forklift mobile are and trucks, cranes, two eight RMQCs, tractors six RTGCs,

KDS HDC coal/steam coal, 9.618 million tons of coking coal, 6.901 million tons of container and 3.429 and container of tons million 6.901 coal, coking of tons million 9.618 coal, coal/steam tons with 81.3% million tons of lime stone. The total export throughput was 14.539 million coming from 6.173 million tons of container, 3.112 million tons of fly ash and 2.531 million tons of thermal coal. KDS and the HDC contributed to 29.1% and 70.9% of the However, throughput, respectively. of the KDS from 2011 to 2018 was 6.1% exceeding that of the HDC, 5.5%. the growth rate following four items: 9.843 million tons of non-coking the up by throughput was taken a record high of 63.76 million tons, thereby achieving the second highest YOY growth rate of growth rate the second highest YOY achieving a record high of 63.76 million tons, thereby at 2.9%. The figure for the major ports in India stood throughput at 10.14% while the average Source

Major Equipment in the Kolkata Port 1-9> Major Equipment
Throughput of the KDS & the HDC in the Kolkata Port (Unit: million tons)

Category 2011 2012 2013 2014 2015 2016 2017 2018 CAGR

Import 7.00 6.47 6.71 9.82 10.54 10.12 10.62 11.60 7.5%

KDS Export 5.23 5.37 6.16 5.47 6.24 6.69 6.77 6.95 4.2%

Total 12.23 11.84 12.88 15.28 16.78 16.81 17.39 18.55 6.1%

Import 20.97 20.55 20.71 26.43 28.84 26.89 31.72 37.63 8.7%

HDC Export 10.05 7.54 7.80 4.58 4.67 7.25 8.78 7.59 -3.9%

Total 31.02 28.08 28.51 31.01 33.51 34.14 40.50 45.21 5.5%

Import 27.97 27.02 27.42 36.25 39.38 37.01 42.34 49.22 8.4%

Total Export 15.28 12.91 13.96 10.05 10.91 13.94 15.55 14.54 -0.7%

Total 43.25 39.93 41.39 46.29 50.29 50.95 57.89 63.76 5.7%

Source: "Administrative Report" of the respective year, Kolkata Port Trust

[Figure 1-6] Throughput of the KDS & the HDC in the Kolkata Port 033 60.00 (million tonnes) CHAPTER 45.21 40.50 40.00 01 33.51 34.14 31.02 Analysis of the Environment and Current Status in India 28.08 28.51 31.01

17.39 18.55 20.00 15.28 16.78 16.81 12.23 11.84 12.88

0.00 2011 2012 2013 2014 2015 2016 2017 2018 KDS HDC

The total container throughput of the Kolkata Port in 2018 was 829,500 TEUs, recording a CAGR of 6% since 2011. The contribution of the KDS and the HDC was 75% and 25% respectively in 2011, but the KDS’s proportion has gradually increased; thus, the share of the two entities has stayed the same at 80% and 20% since 2014.

Container Throughput of the KDS & the HDC in the Kolkata Port (Unit: 000 TEUs)

Category 2011 2012 2013 2014 2015 2016 2017 2018 CAGR

Import 209.3 232.4 229.7 269.5 297.8 327.5 330.3 329.6 6.7% KDS Export 203.1 230.8 219.6 258.7 280.0 308.4 309.9 321.9 6.8%

KDS Total 412.4 463.2 449.3 528.2 577.7 635.8 640.2 651.5 6.8% 3.0% 3.9% 5.9% 6.1% 3.5% 6.0% CAGR 2018 177.9 651.5 82.2 95.8 2018 411.8 417.7 177.9 829.5 2017 156.0 640.2 72.3 83.7 2017 402.6 393.6 156.0 796.2 2016 135.8 635.8 58.4 77.4 2016 385.9 385.8 135.8 771.7 HDC 43.1 42.1 85.1 2015 85.1 340.9 322.0 662.9 2015 577.7 KDS 50.7 51.2 2014 320.2 309.9 101.9 630.1 2014 101.9 528.2 52.7 60.0 2013 282.4 279.6 562.0 112.7 2013 112.7 449.3 67.8 69.4 2012 300.2 300.2 600.4 137.2 2012 463.2 137.2 66.7 73.1 2011 276.1 276.2 552.2 139.8 2011 139.8 412.4 Total Total Export Export Import Import 0.0 "Administrative Report" of the respective year, Kolkata Port Trust Kolkata Port Trust year, Report" of the respective "Administrative 600.0 400.0 200.0 800.0 (000 TEUs) :  Category Paved roads in India accounted for mere 63.24% of the total as of 2017, and the 2017, and the Paved roads in India accounted for mere 63.24% of the total as of 2.4. Accessibility of the Port and Connectivity of the Hinterland 2.4. Accessibility of the Port regarding logistics and other countries is faced with many The challenge India like HDC Total accessibility of highways in India is limited. There is a large demand for expansion of road in India is limited. There is a large demand for expansion accessibility of highways primarily focused on containers going from the JNPT and the Mumbai Port to the Capital, to the Capital, primarily focused on containers going from the JNPT and the Mumbai Port heaviest traffics Delhi, and the Northern region. This route is congested with one of the across the nation. India’s Recently, cargo transportation landscape has shifted thanks to a railroad of construction the and terminal, container of a new development Gujarat’s Port and the Pipavav Port. connecting the Mundra shipping is infrastructure. Today, the private sector’s investment in ports has triggered the investment in ports has triggered the the private sector’s Today, shipping is infrastructure. roads, railroads, of ports; however, the nation’s development, expansion and modernization investment. According years and have lacked have been neglected for inland waterways have shipping costs and the insufficient shipping infrastructure high average to Drewry, container distribution and cargo system are growth. The nation’s economic hindered India’s [Figure 1-7] Container Throughput of the KDS & the HDC in the Kolkata Port of the KDS & the HDC in the 1-7] Container Throughput [Figure Source 034 Skill Enhancement to Improve Port Operations in India facilities, since the national highways accounted for approximately 1.8% of the total as of 2016, while only 24.5% of them were constructed as four, six, or eight-lane roads, 55.1% as double-lane ones, and 20.5% as single and intermediate-lane ones.3 In addition, the condition of roads, in general, was unsatisfactory as they had not been maintained for years, and approximately 25% of the highways were congested. There has been some improvement since a budget was allocated to enhance the road condition, thereby improving the highway system. The road transportation industry is highly fragmented as many players are small and operate only a couple of trucks relying on the institutional environment, regional operation contracts and licenses, and modernized special cargo transportation equipment is scarce. A variety of projects are in progress to boost the connectivity of major ports and highways, but they are still in the planning phase. Most of such projects are run by Special Purpose Vehicles (SPV) of government organizations. For instance, the JNPT has formed a SPV with the National Highway Authority of India (NHAI) and the City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO). Also, the Chennai Port Trust has created a SPV with NHAI and Tamil Nadu-Chennai Encore Port Road Company Ltd. to improve the Chennai Port’s connectivity to roads. This project contains an initiative to connect the four major cities (i.e. Delhi, Mumbai, Chennai and Kolkata) through four-lane roads to enhance the 035 shipping speed of passengers and cargo and upgrade safety and security standards. CHAPTER 01

The roads connecting each berth of the KDS are extremely congested, and there are Analysis of the Environment and Current Status in India not enough crossroads, creating traffic jams. Against this backdrop, the KDS needs to be connected to highways to handle containers in the NSD and KPD region and increase the traffic volume. As of now, roads accessing ports are designed to go through congested sections and go across railroads through a crossing, and the construction of enhancing low speed roads is in progress to improve the situation.

The railroad is highly important in the logistics and transportation market in India. Indeed, since a large volume of cargo is transported to hinterlands or other regions by rail, sufficient rail connectivity is crucial. The Mumbai Port is one of the major rail cargo transportation centers in India, but it suffers from traffic jams due to a lack of railroads, trains, and warehouses. Therefore, marine transportation companies have been looking for alternative ports in the North-Western region such as the Port of Mundra, Hazira and Pipavav in Gurajat. Another issue with rail transportation is that it may have trouble providing price-worthy, adequate transportation services considering its high costs due to an irregular width of railroads. For example, when a train moves from a narrow track to a wider track, the train and its cargo can be ultimately transported with no issues, but the

3 Basic Road Statistics of India 2016-17, Ministry of Road Transport and Highways, 2020.03. India needs more than capacity and efficiency to turn its ports into an essential hub. As of As hub. essential an into ports its turn to efficiency and capacity than more needs India The navigable inland waterway in India is approximately 14,500 km, and 5,200 km 14,500 km, and 5,200 km in India is approximately The navigable inland waterway The KDS can be connected to railroads through the Sealdah Station located on the left located on the left through the Sealdah Station to railroads The KDS can be connected shipping, thereby easing off the pressure put on the development of land transportation easing off the pressure put on the development of land transportation shipping, thereby infrastructure. flag; under the law, whether or not vessels provide international feeder services or hold whether or not vessels provide international feeder services or hold flag; under the law, companies shipping international Since irrelevant. is rights transportation coastal domestic as ports Indian using in interested not are they services, shipping maritime provide cannot the like services. The advancement of maritime transportation the hub of transshipment IWT will stimulate nautical shipping across the North and the South and the international to link Kolkata and the Northern area following rivers, but the current or potential cargo but the current or potential cargo rivers, area following and the Northern to link Kolkata currently available statistics. volume of the IWT is not included in vessels hoisting India’s law dictates that marine shipping must be done through India’s now, cargo from bulk cargo transported via roads and railroads. For instance, iron ore is loaded instance, iron For railroads. via roads and cargo from bulk cargo transported facilities along the river in large to iron ore landing into barges, and it is transported materials for fertilizer are loaded into barges and sent to fertilizer raw quantities. Similarly, factories The following IWT the system waterway. of the North-Eastern region was designed of major rivers and 500 km of canals of the waterway are fit for transporting machine- are fit for transporting of the waterway of major rivers and 500 km of canals manufactured craft items. The Inland Transport Waterway (IWT) is limited to 1% of the overall inland trafficvolume. The IWT system was developed to structurally take out large Today, the Kolkata Port is connected to Assam and the Inland Container Depot (ICD) of Nepal. the Inland Container Depot (ICD) Port is connected to Assam and the Kolkata Today, In comparison, the HDC has relatively new infrastructure, but adjacent areas are still going through the development phase, thereby creating traffic congestion. Against this backdrop, the government determined that it would be effective to connect the HDC to the railroad, rail. by plan to expand the volume of traffic and with that in mind it developed a side of the Hooghly River and the riverside pier of Budge Budge. On the right side of the hub. A plan to expand the petroleum terminal via Mourigram’s river, it can be connected progress. rail is in by up the cargo traffic to ramp to the Diamond Harbor all the way railroad The CONCOR introduced container rail services between the KDS and Tughlakabad in 2006. process is time-consuming. A few companies have had virtual monopoly on the market of of on the market have had virtual monopoly A few companies time-consuming. process is thanks liberalized become now has industry service rail the but rail, by shipment container to the government’s effort.According to statistics onrail transportation from 2004 to 2005, in India. throughput the international container for 30% of segment accounted the rail 036 Skill Enhancement to Improve Port Operations in India 3. Port Development Plan

One of the most well-known port development plans in India is the Sagarmala Program. The government created the plan to enhance the performance of the logistics sector, and it left the door open for logistics shipping via canals and coastlines to minimize the investment in infrastructure needed to achieve the goal. The government invested 9.7 trillion rupees (approx. $140 billion) in the program as of 2019, thereby constructing large-scale ports, modernizing existing ports, developing 14 Coastal Economic Zones (CEZ) and Coastal Economic Units (CEU), constructing roads, railroads and a logistics complex, strengthening the connectivity amongst ports through pipelines and waterways and developing coastal communities. The government is determined to increase the export of goods to $110 billion and create 10 million direct and indirect jobs.

The Sagarmala Program is the flagship program of the Ministry of Shipping (MoS) to promote port-led development in the country through harnessing India’s 7,500 km coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade 037 routes. This program aims to modernize ports to contribute to the advancement of India by CHAPTER reinforcing the port-led development and developing coastlines. Also, the program is designed

to transform existing ports into world-class, modern ports, integrate the development of ports, 01 industrial complexes and hinterlands, and create an effective cargo transport system through Analysis of the Environment and Current Status in India roads, railroads and inland as well as coastal waterways, thereby turning ports into the driving force of economic activities in coastal regions.

As part of the Sagarmala Program, more than 574 projects have been identified for implementation, during 2015-2035, across the areas of Port Modernization & New Port Development, Port Connectivity Enhancement, Port-linked Industrialization and Coastal Community Development. According to the approved plan, the aforementioned projects need to be run as a private or public-private partnership initiative led by the government including ministries, public organizations and state governments.

Primary Components of the Sagarmala Program

No. Component No. of Projects

1 Port Modernization & New Port Development 236

2 Port Connectivity Enhancement 235

3 Port-led Industrialization 35

4 Coastal Community Development 68

Source: The Official Website of the Sagarmala Program (http://sagarmala.gov.in) National waterways prioritized for development in the first phase National waterways • Under the Sagarmala Program, endeavor is to provide enhanced connectivity between between is to provide enhanced connectivity endeavor Program, the Sagarmala Under India’s hinterland connectivity is mainly based on surface transport such as road and such as road and transport hinterland connectivity is mainly based on surface India’s 3.2. Port Connectivity Enhancement Connectivity is one of the critical enablers for ports, and the end-to-end effectiveness of According to the studies conducted under the Sagarmala Program, it is expected that that expected is it Program, Sagarmala the under conducted studies the to According 3.1. Port Modernization & New Port Development & New Modernization 3.1. Port maritime country’s via the volume is conducted by trade than 90% of India’s Since more connectivity projects considered are listed below: coastal region. The long lead distance increases the logistics cost and time variability within coastal region. The long lead distance increases the logistics cost and time which the cargo can be delivered. of the types of the ports and the domestic production/consumption centers. Some rail, wherein domestic waterways (i.e. coastal shipping and inland waterways) playing playing (i.e. coastal shipping and inland waterways) wherein domestic waterways rail, refined oil, crude transporting for used predominantly are Pipelines role. limited very a more even is ports to connectivity smooth India, In gas. natural and products petroleum centers are mainly in the hinterland instead of in the important as the cargo generating match demand but will not be able to handle additional iftraffic the evacuation to and from the of the major ports with that connectivity is, therefore, important It restricted. is the port hinterland is augmented not only to ensure smooth flowof traffic the at present levelbut increase in traffic. also to meet the requirements of projected the logistics system drives competitiveness for the maritime industry as well. With infusion can ports at available capacity cumulative/total the building, capacity and technology new of current cargo handling capacity is only 1,500 MMTPA. The government has prepared a prepared a The government has capacity is only 1,500 MMTPA. current cargo handling roadmap to boost the capacity to 3,300+ by MMTPA 2025 to cater to the growing traffic. This includes port operational efficiency improvement, capacity expansion of existing ports and new port development. India has 12 major ports and approximately 200 non-major ports administered by the the ports administered by ports and approximately 200 non-major India has 12 major respectively. and the state governments central the cargo traffic at Indian ports will reach approximately 2,500 MMTPA in 2025 while the route, there is a continuous need to develop India’s ports and trade-related infrastructure to infrastructure ports and trade-related need to develop India’s is a continuous route, there in India” initiative. “Make industry and to assist the growth in the manufacturing accelerate 038 Skill Enhancement to Improve Port Operations in India • Connectivity to dedicated freight corridors

• Last mile rail and road connectivity projects

• Major rail connectivity projects

• Freight friendly expressway projects connecting the major ports

• Development of multi-modal logistics parks

• POL Pipelines

3.3. Port-led Industrialization

The vision of the Sagarmala Program is to reduce the logistics cost and time for the movement of EXIM and domestic cargo. The development of port-proximate industrial capacities near the coast, in the future, is a step in this direction. In this regard, the concepts of CEZs, CEUs, Port-Linked Industrial & Maritime Clusters and Smart Industrial Port Cities have been introduced. 039 CHAPTER • CEZ: CEZs could be spatial economic regions comprising of a group of coastal districts

or districts with a strong linkage to the ports in that region. CEZs are also envisaged to 01 tap synergies with the planned industrial corridor projects Analysis of the Environment and Current Status in India

• CEU: CEUs will be specific industrial estate projects with a demarcated boundary similar to the DMIC nodes. The CEUs will house the industrial clusters/projects proposed within the CEZ.

Each CEZ will consist of multiple CEUs, and more than one industrial cluster can be housed within a CEU. Within each industrial cluster there can be several manufacturing units. To accelerate the CEU development process, it is proposed that CEUs be prioritized in locations where land parcels are available in areas close to a deep draught port and with strong potential for manufacturing.

The Inter-Ministerial Committee (IMC) was constituted under the aegis of NITI Aayog for development of CEZs in India. As recommended by the IMC, the institutional framework for development of CEZs would be similar to the framework adopted by the DMICDC for development of industrial corridors and nodes. The development of CEZs will be taken up in phases wherein the first phase of development would focus on establishing two large CEZs as pilots. Key Content Key (CICMT) Developing coastal tourism circuits for promoting cruise tourism Developing the infrastructure Developing lighthouses Complex Developing the National Maritime Heritage Museum restaurant Developing an underwater viewing gallery and creating added values, thereby Developing fisheries, aquaculture and cold chain, and society reinforcing relevant capacities and developing infrastructure centers Developing deep sea fishing vessels and fish processing Conducting R&D to develop technologies, promote marine tourism and establish fishing harbors Fostering talent in the port and marine sector Fostering & Shipbuilding (CEMS) Establishing the Center of Excellence in Maritime at the Alang-Sosiya shipyard project for workers Providing the fire safety training in maritime logistics Setting up Multi Skill Development Centers (MSDC) and Coasts (NTCPWC) Center for Ports, Waterways Establishing the National Technology Technology Maritime Coastal and Inland for Center the of establishment the Proposing • • • • • • • • • • • • • • Harbors Category The Official Website of the Sagarmala Program (http://sagarmala.gov.in) Program Website of the Sagarmala The Official :  Coastal Tourism Maritime Sector R&D in Port and Skill Development On the skill development front, closely related to this study, the skill gap studies the skill gap studies On the skill development front, closely related to this study, 3.4. Coastal Community Development Community 3.4. Coastal that comprise the 72 coastal districts population lives in 18% of India’s Approximately Development of Fishing Fishing of Development

Key Content of “the CCD Plan” under the Sagarmala Program Program under the Sagarmala Plan” Content of “the CCD 1-13> Key

The MoS in partnership with the MSDE is setting up the MSDC in maritime logistics under the Pradhan Mantri Kaushal Kendra (PMKK) program of the MSDE at the major ports. The first such MSDC has been setup at the JNPT on March 8, 2019 and has been planned at 041 the Chennai Port, the Cochin Port, the Visakhapatnam Port and the New Mangalore Port. CHAPTER The center will provide skill development in maritime logistics and placement to over 1,050 01

students per year in the port and maritime sector. The key training areas are warehouse Analysis of the Environment and Current Status in India management, consignment & tracking, inventory management, EXIM trade documentation and other related courses in the maritime logistics domain. The physical infrastructure has been provided by the JNPT and the CIDCO and the center will be managed and operated by the reputed logistics company, All Cargo Logistics Ltd.

The National Technology Center for Ports, Waterways and Coasts (NTCPWC), at IIT Madras is being set up to study engineering issues related to ports, waterways and coasts and in the country. The NTCPWC will act as a technology arm of the MoS for providing the needful technological support to ports, the Inland Waterways Authority of India (IWAI) and all other related institutions. The cost of setting up the center is shared by the MoS, the IWAI and the major ports. A Memorandum of Agreement was signed on February 26, 2018 between the MoS and IIT Madras, and it laid the foundation for setting up of the NTCPWC. The Center for Inland and Coastal Maritime Technology (CICMT) at IIT Kharagpur has also been proposed. The center will serve as a technical arm of the MoS like the CICMT or the NTCPWC. It will be a state-of-the-art facility and will cover the following five domain areas: Ship Design for Coastal/Inland waterways, Shipbuilding Technology & Structural Design, Transport Systems & Logistics, Cryogenic Cargo Handling and Green/Renewable Energy Harvesting from Coastal and Inland Waters. Title The Inland Waterways Authority of India Act, 1985 of India Act, Authority The Inland Waterways 1986 The Merchant Shipping (Amendment) Act, 1993 Goods Act, of The Multimodal Transportation (Inapplicability to Major Ports) (Regulation of Employment) The Dock Workers 1997 Act, Safety of Maritime Navigation and Against The Suppression of Unlawful Acts 2002 Fixed Platforms on Continental Shelf Act, 2008 The Indian Maritime University Act, 2016 Act, The National Waterway 2017 of Maritime Claims) Act, (Jurisdiction and Settlement The Admiralty The Dock Workers (Regulation of Employment) Act, 1948 Act, (Regulation of Employment) The Dock Workers 1948 The Calcutta Port (Pilotage) Act, 1958 The Merchant Shipping Act, 1963 The Major Port Trusts Act, 1966 The Seamens Provident Fund Act, 1980 Amendment Act, (Regulation of Employment) The Dock Workers and Limited (Acquisition The Hooghly Docking and Engineering Company 1984 Act, of Undertakings) Transfer The Coasting Vessels Act, 1838 Act, The Coasting Vessels 1873 Act, and Drainage The Northern India Canal 1881 Act, The Obstructions in Fairways 1908 The Indian Ports Act, 1917 Act, The Inland Vessels 1925 Sea Act, The Indian Carriage of Goods by 1927 The Light House Act, 4 8 1 9 82 33 28 31 69 17 22 33 44 55 19 16 15 26 17 22 38 49 Act No. Act The Official Website of the Ministry of Shipping (http://shipmin.gov.in) The Official :  Management 2016. 03. 25. 2017. 08. 09. 1997. 08. 18. 2002. 12. 20. 1984. 08. 23. 1985. 12. 30. 1986. 08. 14. 1993. 04. 02. 1958. 10. 30. 1966. 03. 26. 1917. 02. 07. 1925. 09. 21. 1927. 09. 21. 1948. 04. 16. 1838. 08. 27. 1873. 02. 11. 1881. 03. 15. 1908. 12. 18. 2008. 11. 11. 1963. 10. 16. 1980. 11. 29. 1948. 03. 04. All the 12 major ports are governed under “the Major Port Trusts Act, 1963”. All the non- Trusts Act, are governed under “the Major Port All the 12 major ports Enactment Date Source major ports (minor ports) are governed under “the IPA Act, 1908”. Some ports have created 1908”. Some ports have created Act, ports) are governed under “the IPA major ports (minor own autonomous rules. and adopted their Laws and Regulations 1-14> List of Port-related

This act was enacted on October 16, 1963 to define regulations of trusts operating and managing major ports in India and stipulate particulars of port management, control and operation and other matters related to port operation and management. Initially the subjects of the act were limited to the Cochin Port, the Kandla Port and the Visakhapatnam Port, but today the scope has been expanded to cover 12 major ports.

The act primarily consists of the following components: composition of the executives and staff of the port trusts, their roles and responsibilities, enactment of autonomous rules of the trusts, asset management and contracts, business and service provision of the ports, authority to set and charge port fees, borrowing funds and fund raising, the budget and expenses and the central government’s audit and control.

The part on the ports’ business and service provision, in particular, defines the role of the port trusts and the central government regarding port services including loading and unloading and cargo transportation as well as the use of docks. In addition, it clearly states 043 the port trusts’ responsibility in case of loss and damage of goods. Also, the act defines CHAPTER matters related to customs clearance and the usage of private docks. 01 Analysis of the Environment and Current Status in India 4.2. The Dock Workers (Regulation of Employment) Act, 1948 and the Dock Workers Amendment Act, 1980

The Dock Workers Act was enacted on March 4, 1948 to regulate the employment of port workers and amended on November 29, 1980. This act applies to all ports nation-wide except those in the State of Jammu and Kashmir.

The primary content of this act includes: employment of port workers, functions and responsibilities of port workers’ organizations and audit and closing of the workers’ organizations.

According to the act, port workers must be hired as full-time employees, and not only the workers but also the employers need to be registered together. Hiring plans of port employees must be notified through the official gazette. The workers have a right to form the Dock Labor Board, and this as well should be notified through the official gazette. The Board is obligated to manage plans for ports and execute tasks through practicing granted rights. Also, it is the Board’s responsibility to submit the annual closing report and conduct an audit. Content Power is shifting towards Asia. (Asia’s share of the worlds GDP is expected to rise Power is shifting towards Asia. (Asia’s to more than 40% up to 2030) Asian dominance in world shipping is expected A mismatch between supply and demand in fossil energy resources resources The increasing scarcity of raw - - - - Further globalization and development of the world economy are expected to to expected are economy world the of development and globalization Further trigger growth in global freight transport - - - - • resources Category Globalization, demographic growth demographic According to the Global Trends to 2030: Impact on Ports Industry by the Deloitte, there there Deloitte, the by Industry Ports on Impact 2030: to Trends Global the to According The IMU is located in Chennai, and it has campuses in Mumbai, Kolkata and and Kolkata Mumbai, in campuses has it and Chennai, in located is IMU The The key content of this act is as follows: establishment and objects of the Indian Maritime and objects of the Indian content of this act is as follows: establishment The key The Indian Maritime University Act was enacted on November 11, 2008 to establish and was enacted on November 11, University Act The Indian Maritime The amendment made in November 1980 is primarily about the management of funds to management of funds about the 1980 is primarily made in November The amendment 2008 Maritime University Act, 4.3. The Indian and scarcity of natural and scarcity of natural

Key Trends in Port Development Trends Key 1-15>

• The port will remain at the heart of the energy supply -- The share of renewable energy is increasing and the efficiency of solar energy is Energy transition and bio- rapidly increasing based economy -- The number of hybrid and fully electric cars is growing -- Bio-based chemical products will develop fast -- The cargo flow of bio-energy will increase

• The future is technology; technology will radically change the way logistics are organized -- Logistics are becoming more complex, therefore an increasing need to digitalize the information streams Digitalization of logistics -- Digitalization will allow for optimization of current existing infrastructure, reducing the need to invest in additional infrastructure -- Possibility to eliminate unnecessary (empty) transport -- Data analytics and data exchange will allow for optimization of routes

• 3D printing potentially removes the need for shipping Additive manufacturing -- 3D Printing removes the need for shipping (3D printing) -- Shipment of raw materials becoming more important than that of end products

• The ability of hackers to remotely control port operations is the new hole in the fence of port security Security -- Automation provides benefits but increases the exposure to cyber threats -- Cyber attackers may break into the maritime transportation system -- A risk-aware culture must be fostered 045 CHAPTER • The war on talent is focusing on STEM profiles -- Knowledge and innovation will become increasingly dominant factors in Knowledge intensive labor determining the competitive strength of the port 01 market -- STEM students will become more and more sought after Analysis of the Environment and Current Status in India -- Competition for skilled employees is increasing

• Integration of supply chains that are only as strong as their weakest link -- Connections to the hinterland are becoming the most important asset of a port -- Shipping companies, logistics providers, terminal operators are becoming more Further integration of global and a few players is gaining market power; implying a stronger bargaining supply chains power -- The port authority is taking the lead in putting together a common investment agenda with private players in the supply chain for the required infrastructural improvements

• The size and capacity of ships, trains and trucks is rapidly increasing -- The trend of increasing size of transportation means is expected to continue in the next 15 years Increasing scale of -- The largest vessels such as the 22,000-TEU ships can only call at a limited number transport of ports; thus, the size of ports will likely increase -- Transshipment is becoming more structural, the need for cooperation with other ports increases to secure optimal transport

• The sustainable port, it’s not just marketing -- Environmental regulation becomes more comprehensive and more stringent Sustainability -- Ports could distinguish themselves more clearly from other industrial locations by focusing on energy efficiency, recycling of residual materials and carbon capture, storage and reuse

Source: Global Trends to 2030: Impact on Ports Industry, Deloitte 2030s Maturity 2020s Quay Cranes Diffusion 50% Horizontal Transport 2010s Yard cranes Yard 25% Adoption Tracking 2000s Gates Market Maturity by Automation Sector Market Maturity by 1990s Yard Management Yard Content Maturity 2021 Growth Port Market 2017 Innovation Growth Trends in the Automated Trends Growth As the automation of cargo handling becomes more sophisticated, the As the automation of cargo handling becomes more sophisticated, the and is advanced port technology and declines, labor on dependency more investment is made in the effort. The possibility of shipping all products including chilled and frozen cargo as container cargo due to the globalization of trade 2030, thereby 4 to 4.5% by by will go up The container cargo traffic materials in facilitating the Asian and African countries to export raw large quantities. • • • 6.22 2021 4.69 2020 3.66 2019 Size* Category 2.99 2018 high price products Technavio.com (2017-2021). Porttechnology (edition Technavio.com 78.2018), Re-quotation from the Ocean View Observation Slide KMI Ocean Viewing Competition Viewing :  2.36 2017 The paradigm shift to Port 4.0 was enabled by the following: rising needs for advancing the following: shift to Port 4.0 was enabled by The paradigm As we usher in the era of Industry 4.0, a variety of changes are taking place in port place in port are taking 4.0, a variety of changes of Industry in the era As we usher cargo due to a growing volume of Rising needs for advancing ports by Rising needs for advancing ports by adopting state-of-the-art technology The increasing number of container the demand and supply destinations Changes in regional characteristics of Changes in regional characteristics The global container terminal automation market size is expected to increase from $2.36 billion in 2017 to $6.22 billion in 2021, a CAGR of 27%. CAGR Global Container Terminal Automation Market Automation Global Container Terminal for green port services and the number of strategic mergers between large and small- and mergers between large and small- and of strategic for green port services and the number the rise. The details are as follows: medium-sized shipping companies on of Port 4.0 1-16> Background

Mounting demand of • The demand for green port services is on the rise to cater to large environmentally-friendly vessels for environmentally-friendly vessels such as vessels with a capacity of green port services 12,000 to 20,000 TEU.

The number of strategic mergers • Big hub ports are preferred due to the competitiveness of large between large and small- and shipping companies and the selection of locations advantageous for medium-sized shipping companies on transshipment. the rise

Source: Technavio.com (2017-2021). Porttechnology (edition 78.2018), Re-quotation from the Ocean View Observation Slide KMI Ocean Viewing Competition

As the adoption of new technologies always entails obstacles, the introduction of Port 4.0 also imposes a challenge: “a shortage of capabilities” which refers to a lack of specialized technical personnel, one of common problems that emerges with changes.

Indeed, one of the biggest problems in relation to port automation is to secure specialized technical personnel, and it may take as long as five years for experienced engineers to be properly trained. Many ports have struggled to acquire the needed skilled workers to plan and implement port automation. Under these circumstances, ports must step up their efforts 047 CHAPTER to acquire talent and build technological capabilities to successfully achieve the paradigm shift to automation. 01 Analysis of the Environment and Current Status in India

[Figure 1-9] Survey Result on "a Shortage of Capabilities" due to Port Automation

Shortage of people with necessary Inspiring people and utilizing all skills and expertise is a challenge, relevant expertise is a challenge, Respondent groups % of respondents % of respondents

Port operators with 75 25 50 50 experience in automation

Port operators planning to 44 56 44 22 33 implement automation

Suppliers 33 50 17 27 36 36

Others 50 38 13 57 29 14

Yes Somewhat No

Source: Expert interviews; McKinsey Container Terminal Automation Survey, 2017 * Figures may not sum to 100% because of rounding. the Current Status the Current The JNPT is India’s representative container handling port located in Navi Mumbai on the The JNPT is India’s The Indian coastline runs over a distance of 7,500 km, and there are 12 major ports on major ports on The Indian coastline runs over a distance of 7,500 km, and there are 12 India, the world’s largest democracy with a population of 1.3 billion and the number number the and billion of 1.3 a population with democracy largest world’s the India, port structure. The total throughput of the JNPT has declined from 2018-19 to 2019-20 due to port structure. The total throughput of the JNPT has declined from 2018-19 a drop in exports: the break bulk figure wentup by but 34.60%YOY, the liquid bulk, which bulk dropping the overall 14.72%, thereby amounts to 80% of the bulk cargo, went down by cargo figureby 12.60%. The JNPT was designed as the most modern port in India, and it has the long coastline including the JNPT (a subject of this study), the Kolkata Port, (a subject of Port, (a subject the long coastline including the JNPT (a subject of this study), the Kolkata Port. this study), the Chennai Port, the Cochin Port, the Mumbai Port and the Visakhapatnam and it has been managed through a PPP Coast model of within Maharashtra, a landlord West nurture talent fulfilling the nation and needs; society’s to do so, thecentral government and invested in education. the statement governments have mutually rate and a religious and social status system throughout its massive land. Casteism, in in Casteism, land. massive its throughout system status social and and a religious rate still it and years, of thousands for rules life public’s the as accepted been has particular, to a law banning the Caste lives though its influence has diminished due affects people’s to bridge the basic policy of education is India’s system, modernization and education. and classes all for opportunities educational equal provide regions, amongst gap educational current account deficit; however, the Modi administration, which came in power in 2014, and supported an enhanced business environment has aggressively rooted out corruption and promoting export while suppressing import. foreign investment through attracting of a variety social structure is complex with heterogeneity and diversity as a result India’s the rich and the poor, a high illiteracy languages and religions, a huge gap between of races, growth forecast of India as 7% in 2019, offering a bright prospect. The Modi administration industrial structure and proactively service- and agriculture-centric has gone beyond the economic achieve to India” initiative in the “Make with industry manufacturing the fostered reliant heavily is India Also, industry. manufacturing the reviving through development oil, and it has chronically suffered from resources including upon imported mineral of voters reaching 900 million, has diverse races, languages and religions. Modi vowed to and religions. Modi vowed to languages 900 million, has diverse races, of voters reaching 2017, and speech in Independence Day 2022” in his of “New India by achieve the vision communalism and corruption, terrorism, five obstacles: poverty, he pledged to overcome with China” “Next the as emerged has India 2022. by India Modern a create and casteism In fact, the IMF announced its growth and stable macro-economics. its steady economic 6. Comprehensive Analysis of the Environment and and Environment of the Analysis 6. Comprehensive 048 Skill Enhancement to Improve Port Operations in India continued to evolve. The port has a high demand for personnel such as crane operators, crane repairmen, truck drivers and other maintenance staff, but since there is a shortage of skilled port workers, unskilled workers are filling the positions at the JNPT.

The Port of Kolkata, located in the State of West Bengal in the North-eastern region of India, is operated in two parts: the KDS and the HDC. The KDS is one of the major bulk ports and the only riverside harbor in India, and Bharat Kolkata Container Terminals Pvt. Ltd. has been commissioned to provide manpower and operate equipment, thereby running and managing the KDS. The KDS consists of five dry docks on top of wharves for processing cargo, so vessels calling on the Port can be repaired and maintained; it is also equipped with ship-building facilities. The KDS handles not only bulk cargo but also container cargo, and it now needs to respond to an increasing demand of manpower as a complex port due to the recent spike in the volume of container cargo. The HDC, a satellite port of the KDS, is operated through a PPP model within a landlord port structure. Since the HDC is adjacent to a shore, it is confronted with an array of issues as deposited sand brings down water levels and creates sandbars. The KDS and the HDC are working on various projects such as developing a multi-purpose dock nearby the HDC, constructing three docks at the Diamond 049 Harbor and building three docks in the Saugor area to develop the Port, and as the KDS and CHAPTER the HDC continue to advance, there is a growing need for manpower to operate the Port. 01

The KDS, in particular, has vessel repair and maintenance as well as ship-building facilities, Analysis of the Environment and Current Status in India so there is a high demand for vessel painters, machinists and metal technicians, welders, drilling and cutting technicians, ship-fitters and electricians.

The challenge India is faced with regarding logistics and shipping is infrastructure. The private sector’s investment in ports has triggered the development, expansion and modernization of ports; however, the nation’s roads, railroads, inland waterways have been neglected for years and have lacked investment. The accessibility of highways in India is limited, and the road condition is inadequate; consequently, areas adjacent to ports suffer from traffic jams. The railroad is highly important in the logistics and transportation market in India. Indeed, since a large volume of cargo is transported to hinterlands or other regions by rail, sufficient rail connectivity is crucial. However, India suffers from traffic jams due to a lack of railroads, trains, warehouses and the irregular width of railroads. The navigable inland waterway in India is approximately 14,500 km, but the IWT is limited to 1% of the overall inland traffic volume, and waterway shipping must be done via vessels hoisting India’s national flag due to current regulations.

One of the most well-known port development plans in India is the Sagarmala Program. The Sagarmala Program, the flagship program of the MoS, aims to contribute to the The most recent trends in the port industry demonstrate that the market size of port size of port that the market The most recent trends in the port industry demonstrate There is a wide range of laws and regulations on port operation in India. One of in India. One of on port operation of laws and regulations There is a wide range automation has continued to grow since 2017. Also, technological development and and development technological Also, 2017. since grow to continued has automation for the needs rise due to increasing been on the the industry have investment in relevant development of ports through adopting cutting-edge However, technology. the introduction to mention the development and dispatch of skilled port workers and a qualification and a qualification to mention the development and dispatch of skilled port workers therefore, the government should either enact a law or system of professional workers; amend existing laws to foster skilled port workers and introduce a certification system of professional workers. organizations running the 12 major ports in India. It also prescribes port services such as ports in India. It also prescribes port services such as organizations running the 12 major cargo shipping. That said, the act does not cover the loading and unloading of cargo and development and dispatch of skilled port workers. Also, the Dock Workers Act, enacted in enacted in 2008 when Indian Maritime University Act 1948 and amended in 1980, and the these two acts neglect Indian Maritime University was established are in place. Similarly, development in maritime logistics, but there is no program on port operation. there is no program development in maritime logistics, but enacted in 1963, and it stipulates matters Trust Act the primary acts is the Major Port of words, it primarily governs the operation of port trusts, in other related to operation The MoS established the MSDCs in the JNPT and other major ports in partnership with with partnership in ports major other and JNPT the in MSDCs the established MoS The the MSDE based on the PMKK of the MSDE. The center provides training programs on warehouse management, consignment and tracking, inventory management, EXIM trade in the maritime logistics domain to provide skill documentation and other related courses Ministry is funding the fire safety training project for workers at theAlang-Sosiya shipyard. given been have workers 23,000 launched, was program the which in 2017 February Since training (including refresher training) so far. However, the safety training primarily covers and safety education; thus, an education and training shipbuilding technique, vessel repair must be developed. on port operation specifically catering to skilled workers program and it consists of the following four categories: Skill Development, Coastal Tourism, Development, Coastal Tourism, the following four categories: Skill and it consists of Development of Fishing Harbors and R&D in the Port and Maritime Sector, and on the skill coastal districts have already been the skill gap studies targeting 21 development front, port workers, initiative to train The MoS is funding the skill development undertaken. Nadu. Also, the and Tamil Kerala Pradesh, in Andhra is provided and currently training advancement of India by reinforcing the port-led development, developing coastlines and and coastlines development, developing the port-led reinforcing of India by advancement of the primary content revitalization. The economic coastal community-driven achieving program is as follows: Port Modernization & New Port Development, Port Connectivity Enhancement, Port-led Industrialization, and Coastal Community Development. The coastal and technology development, includes details on talent fostering community development 050 Skill Enhancement to Improve Port Operations in India of new technologies may lead to “a shortage of capabilities”. Indeed, one of the biggest problems in relation to port automation is to secure specialized technical personnel, and it may take as long as five years for experienced engineers to be sufficiently trained. Therefore, the government should step up its effort to systematically foster specialized technical workers and skilled workers on port operation and boost their capabilities to successfully execute its port-led economic growth strategies at the juncture of the paradigm shift towards port automation.

051 CHAPTER 01 Analysis of the Environment and Current Status in India 02 CHAPTER

Skill-Gap Analysis of Korean Port Workers

Lead Author : Hoon Heo Second Author : Jonggyeong Lee

1. Status of Ports in Korea 2. Current Status of Incheon Port – Target Port for the Study 3. Analysis of Port Productivity in Korea Skill-Gap Analysis of Korean Port Workers

Lead Author : Hoon Heo Second Author : Jonggyeong Lee

1. Status of Ports in Korea

1.1. Overview

In Korea, there are a total of 60 ports: 14 national ports, 17 municipal ports, 11 national costal ports, and 18 municipal costal ports. 053 CHAPTER

South Korean ports have grown rapidly to the international level since the 1990s. Among 02

them, Port is the sixth largest container port in the world and container hub port in Skill-Gap Analysis of Korean Port Workers Northeast Asia, while Incheon Port and YeosuㆍGwangyang Port are important national ports.

The target port for this study is focused primarily on national ports.

Port classification in Korea

Category Port Name

• Gyeongin Port, Incheon Port, PyeongtaekㆍDangjin Port, Daesan Port, Janghang Port, National port Gunsan Port, Mokpo Port, Yeosu Port, Gwangyang Port, Masan Port, Busan Port, Ulsan (14 ports) Port, Pohang Port, DonghaeㆍMukho Port

• Seoul Port, Taean Port, Boryeong Port, Wando Port, Hadong Port, Samcheonpo Port, Municipal port Tongyeong Port, Jangseungpo Port, Okpo Port, Gohyeon Port, Jinhae Port, Hosan Port, (17 ports) Samcheok Port, Okgye Port, Sokcho Port, Jeju Port, Seogwipo Port

• Yonggyongpo Port, Yeonpyeongdo Port, Sangwangdeungdo Port, Heuksando Port, National coastal port Gageohangri Port, Geomundo Port, Gokdo Port, Hupo Port, Ulleung Port, Chuja Port, (11 ports) Hwasun Port

• Daecheon Port, Biin Port, Songgong port, Hongdo Port, Jindo Port, Ttangkkeut Port, Municipal coastal port Hwaheungpo Port, Sinma Port, Nokdong New Port, Narodo Port, Junghwa Port, Busan (18 ports) South Port, Guryongpo Port, Ganggu Port, Jumunjin Port, Aewol Port, Hallim Port, Seongsanpo Port

Source: Article 2 of the Port Act Enforcement Decree EAST SEA Pohang Port Ulsan Port Busan Ulsan Donghae Port Busan Port Sokcho Port Daegu Tongyeong Port Tongyeong Gyeongsangbuk-do Gangwon-do Gyeongsangnam-do Gwangyang, and Ulsan. Gwangyang, Yeosu Port Yeosu ㆍ Chungcheongbuk-do Daejeon Sejong Seoul Jeollabuk-do Gyeonggi-do Gwangju Jeollanam-do Jeju-do Gangjeong Port Incheon Chungcheongnam-do Gunsan Port Pyeongtaek Port Jeju Port Mokpo Port Incheon Port Ministry of Oceans and Fisheries :  The total throughput including containers, general & bulk cargoes at national ports in 1.2. Throughput Ports in Korea are managed and operated by the Ministry of Oceans and Fisheries (MOF) of Oceans and Fisheries the Ministry by and operated are managed Ports in Korea Korea increased by an annual average of 3.7% from 1.2243 billion tons in 2011 to 1.6379 of 3.7% from 1.2243 billion tons in 2011 to 1.6379 an annual average increased by Korea billion tons in 2019. Source and local Maritime Affaires& Fisheries, the relevant municipalities (local governments) and Yeosu in Busan, Incheon, Authorities four Port 2-1] Ports in Korea [Figure 054 Skill Enhancement to Improve Port Operations in India During the same period, the total throughput of Busan Port increased by an annual average of 5.9% to reach 467 million tons in 2019 while that of YeosuㆍGwangyang Port, which is the main port for bulk cargoes such as petrochemicals and steel, increased by 3.6% to 310 million tons. The throughput of Incheon Port, which handles containers and bulk cargo as a gateway port in the Seoul metropolitan area, increased by 0.8% to handle 157 million tons. As of 2019, Busan Port accounts for 28.5% of the total throughput and YeosuㆍGwangyang Port and Incheon Port account for 18.7% and 10.1%, respectively. These three ports account for 57.2% of the total throughput in Korea.

Total Throughput of Major Ports in Korea (2011~2019) (Unit: Million Ton)

Gwangyang Pyeongtaek Year Busan Incheon Other Total Yeosu Dangjin

2011 294.3 147.7 233.7 95.6 548.6 1,224.3

2012 312.0 143.9 242.5 100.7 550.9 1,249.3

2013 324.9 146.0 236.1 109.2 553.8 1,260.7

2014 346.6 150.1 240.6 117.0 662.7 1,400.0

2015 359.7 157.6 273.4 112.2 672.4 1,463.1 055 CHAPTER 2016 362.4 161.3 284.7 112.9 701.1 1,509.5

2017 401.2 165.5 293.8 112.5 713.7 1,574.3 02

2018 460.0 163.5 303.3 115.1 694.1 1,620.9 Skill-Gap Analysis of Korean Port Workers

2019 467.1 157.2 309.8 113.0 703.8 1,637.9

CAGR 5.9% 0.8% 3.6% 2.1% 3.2% 3.7%

Source: Ministry of Maritime & Fisheries (MOF) & https://new.portmis.go.kr

[Figure 2-2] Total Throughput of Major Ports in Korea (2011~2019)

(Million Tons) (Million Tons) 500 2,000

400 1,600

300 1,200

200 800

100 400

0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total(Right) Busan(Left) Incheon(Left) Gwangyang-Yeosu(Left) 5.9% Total 29,118 16,341 19,369 21,611 22,550 23,469 24,798 25,681 26,005 27,468 28,970 (Unit: Thousand TEUs) 973 6.0% 1,744 1,199 1,355 1,368 1,337 1,442 1,508 1,619 1,694 1,779 Other 2.8% 2,377 1,810 2,073 2,073 2,154 2,285 2,338 2,327 2,250 2,233 2,408 Gwangyang 6.9% 2,377 2,680 3,048 3,121 3,087 1,578 1,903 1,998 1,982 2,161 2,335 Incheon 6.2% 19,469 19,456 20,493 21,662 21,910 11,980 14,194 16,185 17,046 17,686 18,683 Busan Ministry of Maritime & Fisheries (MOF) & https://new.portmis.go.kr :  Yeosu Gwangyang Port, which was intended to be developed as part of the “two-port” be developed as part of the “two-port” Port, which was intended to Gwangyang Yeosu Over the past 10 years, the container throughput at Korean ports has increased by an an by ports has increased at Korean container throughput past 10 years, the Over the Port Gwangyang Yeosu Port, and at Busan Port, Incheon throughput The container 2017 2018 2019 2013 2014 2015 2016 2009 2010 2011 2012 Year CAGR Source largest container port in Korea as a gateway port to the metropolitan area. port to the metropolitan as a gateway largest container port in Korea (2009~2019) at Major Ports in Korea 2-3> Container Throughput

(000TEUs) (000TEUs) 25,000 4,000

3,500 20,000 3,000

2,500 15,000

2,000

10,000 1,500

1,000 5,000 500

0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Busan(Left) Incheon(Right) Gwangyang(Right) Other(Right)

Source: Ministry of Maritime & Fisheries (MOF)

057

1.3. Major Cargoes Handled at the Ports CHAPTER

As of 2019, the total throughput by cargo items is distributed evenly at Busan Port and 02 Skill-Gap Analysis of Korean Port Workers Incheon Port, whereas Yeosu Gwangyang Port handles a remarkably high proportion of liquid cargo and steel products. This is because the relatively higher demand for imports and exports of raw materials from companies in the industrial complex in the region such as petrochemical and steel is high. Yeosu Gwangyang Port, therefore, lacks the characteristics to be a comprehensive port that handles a variety of cargo items.

It means that Yeosu Gwangyang Port is not deemed to be a suitable target port for the skill-gap analysis of port productivity and port workers.

Cargo Throughput of Major Ports by Items (2019) (Unit: Million Ton)

Gwangyang Item Total Busan Incheon Other 3 ports Yeosu

Grain 11 0.7% 100% 2 20.9% 4 37.0% 0 1.0% 5 41.0% 7 59.0%

Food and 78 4.8% 100% 51 65.4% 7 8.6% 5 6.6% 15 19.4% 63 80.6% beverage

Cement 40 2.4% 100% 2 5.2% 4 11.2% 2 5.7% 31 78.0% 9 22.0%

Bituminous 139 8.4% 100% 0 0.0% 15 11.1% 27 19.8% 96 69.1% 43 30.9% coal 91.3% 95.8% 40.7% 42.4% 71.7% 82.2% 57.0% 43.2% 40.6% 87.4% 91.0% 50.3% 95.1% 3 ports 44 36 44 99 97 35 28 26 52 20 201 937 134 8.7% 4.2% 9.0% 4.9% 59.3% 57.6% 28.3% 17.8% 43.0% 56.8% 59.4% 12.6% 49.7% Other 4 2 4 1 64 39 21 46 41 13 51 274 707 4.5% 4.2% 7.4% 7.9% 9.3% 7.1% 10.7% 29.8% 15.8% 18.9% 43.0% 26.3% 18.0% Yeosu 2 2 9 2 1 12 22 35 18 14 19 141 311 Gwangyang Gwangyang 6.8% 7.3% 5.4% 9.6% 0.0% 5.8% 6.6% 5.9% 18.8% 10.8% 11.8% 10.0% 14.0% Incheon 3 7 8 7 0 4 3 7 1 52 14 21 157 0.2% 1.8% 8.5% 22.7% 50.5% 63.0% 28.5% 67.7% 25.7% 82.1% 79.9% 72.8% 69.6% Busan 8 0 6 25 70 74 27 17 39 27 21 469 100 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 6.6% 8.4% 7.2% 9.0% 6.3% 1.3% 2.9% 2.3% 4.9% 4.2% 1.8% 100% Total 28.9% 80 21 48 37 69 30 109 475 138 118 148 103 1,644 https://new.portmis.go.kr Others include sand, anthracite, parts of air crafts & ships, leather and leather products, fertilizers, log, scrap metal, and other miscellaneous goods. :  Total parts parts Item Other Wood, Wood, plastics The total number of port workers, including office and technical workers, stands at stands at office and technical workers, including The total number of port workers, In 2018, the total number of registered stevedoring companies (terminal operators) operators) In 2018, the total number of registered stevedoring companies (terminal 1.4. Stevedoring Companies and Port Workers Companies and Port Workers 1.4. Stevedoring Electric its parts Iron ore products products products Chemical metals and Steel and its Non-ferrous Liquid cargo Note: Textile fibers Textile products and and products charcoal, cork Vehicle and its Vehicle Other ores and Other ores and Machinery and equipment and net number of registered businesses stands at 88, accounting for 29.7% of the total. net number of registered businesses stands at 88, accounting for 29.7% of the Port respectively, 19,630, with 6,982 (35.6%) and 2,481 (12.8%) at Busan Port and Incheon including local branches stands at 421, and the net number of registered businesses (only net number of registered businesses (only the 421, and stands at including local branches stands at 295 companies. 104 companies (24.7% of the headquarters, not including branches) Port, and the total registered stevedoring companies) are located at Busan Port and Incheon Source 058 Skill Enhancement to Improve Port Operations in India accounting for 48.2% of the total. In particular, 8,399 workers at Busan Port and Incheon Port, who were directly employed by stevedoring companies to increase productivity and efficiency of loading and unloading operations and to secure stability, account for 61.6% of the total.

Number of Stevedoring Companies and Port Workers by Affiliation and by Port (2018)

Number of Company 1) Port Workers

2) Shipping Union Number of Stevedoring Company Port Name Net Member Target Port Registered Total Business Companies Number Percentage Number Percentage (Persons) (%) (Persons) (%)

Busan 55 51 6,982 6,035 44.2% 947 15.8% Busan

Incheon 49 37 2,481 2,364 17.3% 117 2.0% Incheon

Pyeongtaek ‧ Pyeongtaek, 23 15 1,369 1,079 7.9% 290 4.8% Dangjin Dangjin

Ulsan 50 36 1,248 412 3.0% 836 14.0% Ulsan

Yeosu, Gwangyang · 059 33 24 1,709 1,022 7.5% 687 11.5% Gwangyang, Yeosu CHAPTER and Suncheon

Pohang 17 12 1,594 759 5.6% 835 13.9% Pohang 02

Masan, Jinhae, Skill-Gap Analysis of Korean Port Workers Tongyeong, Samcheompo, Masan 71 45 1,257 706 5.2% 551 9.2% Okpo, Gohyeon, Hadong

Gunsan, Janghang, Gunsan· 27 10 892 393 2.9% 499 8.3% Boryeong, Daesan Daesan, Taean, Seosan

Mokpo, Wando, Mokpo 35 28 750 358 2.6% 392 6.5% and Nohwado

Donghae, , Donghae 36 22 738 329 2.4% 409 6.8% Samcheok, Okgye, Sokcho, Hosan

Jeju 25 16 610 184 1.3% 426 7.1% Jeju, Seogwipo

Total 421 296 19,630 13,641 100.0% 5,989 100.0%

Note 1) Net business is a figure excluding duplicates for companies registered in two or more regions. In principle, the head office is regarded as a net business. If the head office does not operate a stevedoring business, one branch operating a stevedoring business is counted as a net business. Note 2) Port workers include office and technical workers of stevedoring companies. Source: Korea Port Logistics Association (KOPLA), "Cargo Handling Booklet in Korean Ports 2019", Nov 2019 2.8% 2.8% -0.2% -2.5% CAGR 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

2018 6,982 2,481 1,369 1,248 Jeju (No. of Workers)

2017 5,549 2,494 1,290 1,289

Donghae Mokpo 2016 5,616 2,508 1,320 1,333 (Right) Operator

2015 5,271 2,575 1,283 1,410

Ginsan-Daesan Masan 2014 4,616 2,589 1,395 1,407

Union(Right) Pohang

2013 1,439 4,424 2,715 1,280

Gwangyang-Yeosu Ulsan 2012 1,479 5,243 2,721 1,235 Total(Left)

2011 1,492 5,336 2,861 1,174

Pyeongtack-Dangjin Incheon

2010 1,526 5,606 2,528 1,097 Busan 0 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 (No. of Workers) : Includes office staffs of terminal operators. Ulsan Busan On the other hand, the total number of workers at Incheon Port dropped by 0.2% 0.2% at Incheon Port dropped by of workers On the other hand, the total number During the 2010–2018 period, the total number of Busan Port workers increased by 2.8%, by increased Busan Port workers of number total the period, 2010–2018 the During On average, the number of port workers in Korea increased by 0.7% annually, from from 0.7% annually, by increased in Korea the number of port workers On average, Dangjin Incheon Pyeongtaek ‧ Note

Trends of Total Number of Workers in Korean Ports (2010-2018) in Korean Number of Workers of Total Trends 2-6>

Gwangyang 1,794 1,702 1,752 1,907 1,823 1,184 1,602 1,652 1,709 -0.6% · Yeosu

Pohang 1,728 1,697 1,743 1,729 1,812 1,764 1,713 1,600 1,594 -1.0%

Masan 1,414 1,460 1,565 1,473 1,452 1,346 1,301 1,296 1,257 -1.5%

Etc. 2,812 2,960 2,912 2,867 2,818 2,912 2,932 2,991 2,990 0.8%

Total 18,505 18,682 18,650 17,834 17,912 17,745 18,325 18,161 19,630 0.7%

Source: Korea Port Logistics Association (KOPLA), "Cargo Handling Booklet in Korean Ports", Every Year

[Figure 2-5] Trends of Total Number of Workers in Korean Ports (2010-2018)

(No. of Workers) (No. of Workers) 8,000 20,000

6,000 19,000

4,000 18,000 061 CHAPTER 2,000 17,000 02

0 16,000 Skill-Gap Analysis of Korean Port Workers 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total(Right) Busan(Left) Incheon(Left)

Trends of Total Number of Workers of Port Labor Union in Korean Ports (2010-2018)

2010 2011 2012 2013 2014 2015 2016 2017 2018 CAGR

Busan 1,291 1,180 1,122 1,132 1,097 1,070 1,048 978 947 -3.8%

Incheon 116 116 113 115 115 122 121 120 117 0.1%

Pyeongtaek ‧ 188 230 238 253 276 271 287 286 290 5.6% Dangjin

Ulsan 883 877 881 887 873 862 854 846 836 -0.7%

Gwangyang · 584 577 590 582 564 545 703 697 687 2.1% Yeosu

Pohang 950 949 953 953 961 958 935 861 835 -1.6%

Masan 592 619 616 619 611 622 611 572 551 -0.9%

Etc. 1,488 1,563 1,553 1,569 1,579 1,652 1,671 1,739 1,726 1.9%

Total 6,092 6,111 6,066 6,110 6,076 6,102 6,230 6,099 5,989 -0.2%

Source: Korea Port Logistics Association (KOPLA), "Cargo Handling Booklet in Korean Ports", Every Year 6,400 6,200 6,000 5,800 (No. of Workers) 2018 2017 2016 Incheon(Left) 2015 Busan(Left) 2014 2013 Total(Right) 2012 2011 2010 0 800 400 1,600 1,200 In terms of the number of stevedoring companies and port workers, Busan Port and Busan Port and In terms of the number of stevedoring companies and port workers, Yeosu Gwangyang Port handles a higher throughput than Incheon Port. In particular, Port. In particular, Gwangyang Port handles a higher throughput than Incheon Yeosu Busan Port is the world’s sixth largest container port, and its large container terminals and its large container terminals sixth largest container port, Busan Port is the world’s 1.5. Target Port of This Study 1.5. Target port and a major comprehensive port in Incheon Port is the second largest container (No. of Workers) Incheon Port have an absolute position in terms of the proportion and variety of handled of handled Incheon Port have an absolute position in terms of the proportion and variety cargoes. this port handles mostly bulk cargoes from large petrochemical and steel manufacturers. manufacturers. this port handles mostly bulk cargoes from large petrochemical and steel Busan Port and Incheon Port than However, it has a lower container throughput growth rate this study. and thus it is considered to be relatively unsuitable to be the target port of are optimally designed to handle large volumes of containers. Busan Port will contribute to are optimally designed to handle large so that it can be the container target port of this study, setting the long-term goals for JNPT, positioned as a hub container port in Southwest Asia, the Middle East, and East Africa. handled at multi-purpose piers in Inner Port and South Port, not at container-dedicated container-dedicated at not Port, South and Port Inner in piers multi-purpose at handled the has begun since container-dedicated terminals of the operation but terminals, of Incheon Port are similar to those of JNPT establishment of New Port. The characteristics to be suitable as the reference for the Port, and Incheon Port is considered and Kolkata goals of Indian target ports. short- and medium-term development Korea, and serves as a gateway to the Seoul metropolitan area, where 50% of the total of the total to the Seoul metropolitan area, where 50% a gateway and serves as Korea, Prior to the opening of New Port, containers were population (25.9 million people) reside. [Figure 2-6] Trends of Total Number of Workers of Port Labor Union in Korean Ports (2010-2018) in Korean Port Labor Union of of Workers Number of Total 2-6] Trends [Figure 062 Skill Enhancement to Improve Port Operations in India Therefore, in order to analyze the port productivity and the skill gap of port workers in this study, various characteristics such as throughput by major port, geographical, industrial structure have been taken into account. As a result, Incheon Port, a comprehensive port whose throughput is similar to the target port of India and that handles various cargoes, is chosen as the target port for the study.

2. Current Status of Incheon Port – Target Port for the Study

2.1. Incheon Port

Incheon Port has been faithfully playing a pivotal role in national economic development since it opened for the first time in Korea in 1883. Built in 1974 to overcome the tidal range and variation and accommodate large ships, its lock gate is the largest in Asia.

Brief History of Incheon Port 063 CHAPTER Year History

1883 • Opened Incheon Port 02 Skill-Gap Analysis of Korean Port Workers 1918 • Completed the construction of Dock 1 at Incheon Port

• Opened Korea’s first container port 1974 • Completed the construction of Asia’s first lock gate facility • Completed the construction of Dock 2 at Incheon Port

2000 • Opened the 1st International Passenger Terminal

2002 • Opened the 2nd International Passenger Terminal

2004 • Opened Incheon Container Terminal (ICT) at South Port

2005 • Established the Incheon Port Authority (July 11)

2006 • Container throughput exceeded 1 million TEUs within the shortest time (2 years consecutively)

• Opened North Port Steel Pier at Incheon Port 2007 • Completed the construction of the container logistics hinterland in Aam Logistics Complex and began its operation

• Opened North Port Wood Pier at Incheon Port 2008 • Incheon Port’s annual container throughput ranked ‘65th in the world’

• Completed the construction of North Port Multi-Purpose Pier at Incheon Port 2009 • Opened South Port E1 Container Terminal at Incheon Port

2012 • Began operating all 17 berths in North Port of Incheon Port

2013 • Achieved a container throughput of 2 million TEUs History is a national public corporation established in 2005 under established in is a national public corporation 4 Global shipping company ONE (Ocean Network Express) started its first service at Incheon Port ONE (Ocean Network Global shipping company South 8) – began its direct pacific service to the America (PS8, Pacific HMM, a member of the Alliance Achieved a container throughput of 3 million TEUs a container throughput of 3 million Achieved shorter than the previous year) 3 million TEUs (8 days Achieved Opened Cruise Terminal passengers at Incheon Port exceeded 2 million The number of marine tourism Opened Incheon New Port Terminal B Sunkwang New Container Terminal (SNCT) (June 1) Terminal B Sunkwang New Container New Port Terminal Opened Incheon (HJIT) (March 18) Terminal New Port Hanjin International Opened Incheon Announced ‘Incheon Port Container Function Adjustment and Revitalization Plan’ (Ministry of Ocean and Fisheries) of SNCT Completed the phase 2 construction • • • • • • • • • • Incheon Port Authority (IPA) :  Incheon Port Authority (IPA) Incheon Port Authority pursuant to Article 1 of the Incheon Port Authority The purpose of establishment of the 2.2. Incheon Port Authority (IPA) 2.2. Incheon Port Authority Oceans and Fisheries, is a market-based public corporation. Oceans and Fisheries, is a market-based public corporation. IPA, which is established in accordance with the Port Authority Act in 2003 and operated under the umbrella of the Ministry of of the Ministry of under the umbrella with the Port Authority Act in 2003 and operated which is established in accordance IPA, 2020 2017 2018 2019 2015 2016 Year

4 Port Authority Act is “to foster ports as a hub for competitive shipping and logistics and foster ports as a hub for competitive shipping and logistics and is “to Act Port Authority enhancing the expertise and by national economy contribute to the development of the of port facilities.” and operation efficiency in the development, management the Port Authority Act for efficient development and management of Incheon Port. for efficient development and Act the Port Authority Source 064 Skill Enhancement to Improve Port Operations in India [Figure 2-7] Mission, Vision and Strategic Tasks of the Incheon Port Authority (IPA)

065 CHAPTER 02 Skill-Gap Analysis of Korean Port Workers

Source: Incheon Port Authority (IPA)

」 」 」 」 the Port 」 「 the Framework the Framework the Ports Act the Act on the the Act the Ports Act the New Energy 「 「 「 「 「 」 Ports Relevant Law Development Act Act on Logistics Policy Act and Distribution Promotion Act Paragraph 4, Article 2 of 4, Article Paragraph Creation and Management of Marina Redevelopment and Surrounding Area Redevelopment and Surrounding Paragraph 2, Article 2 of 2, Article Paragraph Paragraph 5, Article 2 of 5, Article Paragraph and Renewable Energy Development, Use, Paragraph 3, Article 2 of Paragraph Paragraph 11, Article 2 of 11, Article Paragraph Paragraph 2-b, Article 2 of Paragraph Business Incheon Port Authority (IPA) :  Since its establishment, IPA has steadily expanded port infrastructure facilities such as facilities such as steadily expanded port infrastructure has Since its establishment, IPA The scope of the IPA’s business in accordance with the relevant laws is as follows. relevant laws is as with the business in accordance of the IPA’s The scope Direct implementation, investment, or contribution for subsidiary projects related to the above projects Exchange and cooperation projects for the establishment, of ports between the two Koreas management and operation the Presidential Decree as necessary Other projects prescribed by such corporation, to achieve the purpose of establishment of the of foreign ports. as establishment, management, and operation Projects related to research, technology development, and and Projects related to research, technology development, 2-2, 2, 1, Paragraph to pursuant projects for training manpower 2-3, 3 and 4 commercial of operation and construction the to related Projects of port users facilities and welfare facilities for the convenience outside the port area Projects entrusted by the state or local governments in relation to Projects entrusted by port establishment, management and operation of and operation Projects related to the installation, management sites and facilities new and renewable energy facilities using the the Corporation managed by Projects related to the creation, management and operation of of operation and creation, management Projects related to the marina port facilities Logistics facility operation Port hinterland development project Port hinterland development Port redevelopment project construction, renovation, maintenance, repair, and dredging of maintenance, repair, and dredging of construction, renovation, and passenger cargo management port facilities, and port security, terminal Projects related to port management and operation such as new such as new management and operation Projects related to port • • • • • • • • • • • • piers and hinterland logistics complexes, and has expanded its route and service networks. piers and hinterland logistics complexes, and has expanded its route and 60.5% (3.3148 was established, the asset increased by Compared to the year 2005 when IPA is striving IPA trillion won) and sales grew more than 7.7 times (156.7 billion won) as of 2019. and tourism to turn itself into a top-notch port in which cargo and passengers, logistics Source

The Incheon Port Authority’s 2-9> The Incheon of Business Scope

[Figure 2-8] Organization of IPA

Customer

Management Division Operation Division Construction Division

• Planning & Coordination Office • Logistics Strategy Office • Port Development Office (Innovation · Performance • Global Marketing Team • Port Construction Team Management TF Team) • Port Operation Team • Port Facility Maintenance Team • Financial Management Team • Logistics Business Team • Port Technology Team • Port New-Deal Project Team • Passenger Business Team (Research & Cevelopment TF Team) • Human Resources Development Team • Logistics Information Team • Lock Gate Operation Team • Management Support Team Public • Port Environment Team • Lock Gate Facilities Team Relations Team

Disaste & Safety Office Audit Team 067 Job Creation & Social Values Office Port Committee Audit Committee CHAPTER

President IPA Labor Union 02 Skill-Gap Analysis of Korean Port Workers

Source: Incheon Port Authority (IPA)

2.3. Status of Facilities at Incheon Port

Incheon Port consists of four cargo port facilities, including New Port, Inner Port, South Port and North Port, along with coastal and international passenger pier, Golden Harbor, and port hinterland. IPA, IPA, "Port of Incheon-The Northeast Asian Hub Port, Moving Becoming Towards a Global Hub Port", the 2019 version was revised and edited by the author and edited by revised : : Initially, all cargoes, including containers, was handled mainly in Inner Port, but since since but Port, Inner in mainly handled was containers, including cargoes, all Initially, The main pier facilities include a total of 125 berths and a total pier length of 26,031m of 26,031m The main pier facilities include a total of 125 berths and a total pier length then, additional ports have been developed in the order of coastal pier, South Port and and Port South pier, coastal of order the in developed been have ports additional then, while in Inner Port North Port. As a result, some container cargoes that causes time delays Source pier + 2,459m of container pier). (23,572m of general [Figure 2-9] Status of Facilities at Incheon Port Status of Facilities at 2-9] [Figure 068 Skill Enhancement to Improve Port Operations in India passing through the lock gate are now partly handled in South Port while clean bulk cargo, which causes environmental and traffic congestion, is being partially handled in North Port. With the opening of New Port, container cargo processing in Inner Port has been completely stopped, and the SNCT pier and CJKE in South Port were closed.

At New Port, in which some facilities began partially operating in June 2015 and all facilities began operating in earnest from November 2017, 12,000 TEU large container ships can berth. With the opening of New Port, container cargo that has been handled using a multi-purpose pier is handled through a dedicated terminal, which is expected to greatly enhance the efficiency and competitiveness of container handling. In addition, the container terminal of New Port has taken a firm root as a state-of-the-art port through the introduction of various automated loading and unloading equipment such as ARMGC and a high-tech based terminal operation system. In addition, the container terminal in phase 1-2, which is to be newly constructed with the goal of beginning its operation in 2025, is planned to be fully automated.

Facility Overview and Major Operators at Incheon Port (2019) 069

Berthing Capacity Pier Unloading Capacity CHAPTER Major Terminal Index Length Operators No. of BULK CONT DWT (m) Berth (000 RTs) (000 TEUs) 02 Skill-Gap Analysis of Korean Port Workers Total 125 26,031 92,671 3,162

• SNCT 5,000∼40,000 New Port 6 1,600 2,400 • HJIT (2,000∼3,000TEU)

• IPOC (Incheon Inner- Inner Port 2,000∼50,000 46 9,838 38,161 Port Operation Com.)

• ICT South Port 2,000∼100,000 25 3,642 17,600 762 • E1CT

• Dongbang • Daejoo North Port 500∼330,000 26 6,421 13,900 • INMT • Dongbu

• Ferry boats & Cruise Golden Harbor 500∼50,000 9 1,429 ships

Songdo • KOGAS 3,000∼75,000 4 1,300 (New Port) • E1

• Youngheung Power Youngheung-do 2,000∼200,000 5 1,126 14,690 Plant

Geocheom-do • Sun Kwang Sand 5,000 4 675 8,320

Source: IPA, "Port of Incheon-The Northeast Asian Hub Port, Moving Towards Becoming a Global Hub Port", 2019 version was revised and edited by the author

2)

3,162 3,162 CONT (1,000 TEU)

-

920 Loading Capacity 7,150 6,520 3,840 BULK 17,980 10,250 12,060 18,200 92,671 15,751 (1,000 RT) % 7.0% 5.0% 4.7% 4.4% 2.9% 1.7% 6.3% 9.4% 100% 13.5% 10.1% 15.4% 19.6% Pier Length 450 762 (m) 2,618 1,216 1,136 4,010 1,827 1,301 3,504 1,635 2,459 5,113 26,031 1) 5 2 6 4 4 4 9 19 17 20 12 23 125 Berth (no.) Facility Specification Specification Facility

15,000 5,000 200,000 5,000 50,000 50,000 40,000 50,000 330,000 3,000TEU) ∼ ∼ ∼ ∼ ∼ ∼ ∼ ∼ Berthing Capability ∼ 10,000 50,000 20,000 ∼ 2,000 2,000 500 8,000 5,000 8,000 10,000 30,000 100,000 Ship Size (DWT) (2,000 3) 4) Oil Coal Steel Total Sand Item Grain Wood Vehicle Other Cement Unloading capacity: Refer to the revised plan for the 3rd National Port Basic Plan (announced in September 2016) plan for the 3rd Unloading capacity: Refer to the revised Others: Inner Port Public Berth (15 berths) and Carferry Berth (2 berths), South Port Coal Pier (1 berth for oil), Yeongheung-do Limestone Pier (2 berths) Facility specification: Refer to Incheon Port Facility Operation Regulations Facility specification: Refer to Incheon Port Facility Operation Passenger Coastal Pier (1 berth) Passengers: International Passenger Pier (3 berths), Domestic  Container Passenger Incheon Port Authority (IPA) :  2.4. Status of Each Port at Incheon Port 2.4.1. Inner Port in Inner Port of Incheon Korea began its operation In 1974, the first container terminal in As for the pier extension by usage, miscellaneous goods account for 19.6% of the total total of the 19.6% for account goods miscellaneous usage, by extension the pier As for Miscellaneous Goods Note 1) Note 2) Note 3) Note 4) Port located within the lock gate. It consists of a total of 46 berths including 12 50,000-ton 12 50,000-ton Port located within the lock gate. It consists of a total of 46 berths including automobile, and car cargo, steel, grain, there are facilities for general class berths. Currently, ferry in Inner Port. Source with 5,113m, followed by oil pier (4,010m, 15.4%), container (2,459m, 9.4%), sand (1,827m, 7%) 9.4%), sand (1,827m, container (2,459m, (4,010m, 15.4%), oil pier followed by with 5,113m, 6.3%). and car (1,635m, Usage at Incheon Port (2019) of Piers by 2-11> Overview

Major Facilities in Inner Port of Incheon Port

Berthing Capacity Transit Shed Open Storage Pier Unloading Category No. of Berth DWT No. of Area Yard Area Length Capacity (50k Tons) (k Tons) Units ( ) ( ) (m) (k Tons) ㎢ ㎢ Total 46 (12) 2~50 21 202 856 9,838 38,161

1 11 (1) 2~50 3 12 127 1,964 4,730

2 7 8~30 10 53 70 1,278 5,380

3 7 8~20 4 20 57 1,250 4,340

4 5 (1) 10~50 3 112 235 1,160 3,861 Pier 5 4 (4) 50 1 5 173 1,150 8,530

6 6 (1) 5~50 - - 108 1,218 3,040

7 4 (4) 50 - - - 1,216 6,520 071 CHAPTER 8 2 (1) 20~50 - - 86 602 1,760

Source: IPA, "Port of Incheon-The Northeast Asian Hub Port, Moving Towards Becoming a Global Hub Port", 2019, the contents of p.10 02

and p119 are revised and edited by the author Skill-Gap Analysis of Korean Port Workers

[Figure 2-10] Inner Port at Incheon Port

Source: IPA, “Port of Incheon-The Northeast Asian Hub Port, Movin Towards Becoming a Global Hub Port”, 2019

5 The establishment of the IPOC is aimed at the re-establishment of the functions of each port at Incheon Port and the continued development of the manufacturing and logistics industries in Incheon and the metropolitan area through the government’s policy to redevelop Incheon’s inner port and strengthen the competitiveness of existing port logistics functions that reflecting social de- mands for a water-friendly spatialization of the existing ports. The IPOC operates seven of the eight docks in the inner harbor. - - 590 3,510 9,660 13,760 (k Tons) - - - 762 552 210 (k TEU) Unloading Capacity 240 400 922 600 260 (m) Pier 2,422 Length ) 2 - - - CFS 1 / 800 3 / 1,800 2 / 1,000 (Unit /m ) ㎢ 91 27 66 94 473 195 ( Yard Area Yard Open Storage Open Storage 4 4 14 12 11 4~14 Depth of Water (m) Water 2 1 1 3 18 11 No.of Berth Berthing Capacity ICR E1CT Coal Pier Sand Pier cargo/Sand Total Yeongjin general general Yeongjin Category IPA, “Port of Incheon-The Northeast Asian Hub Port, Movin Towards Becoming a Global Hub Port”, 2019 Towards Northeast Asian Hub Port, Movin “Port of Incheon-The IPA, IPA, "Port IPA, of Northeast Incheon-The Asian Hub Becoming Port, a Moving Global Towards Hub Port", 2019, the contents of p.10 and p.99 are revised and edited by the author by and edited revised and p.99 are :  :  2.4.3. North Port and subsidiary North Port is a dedicated bulk cargo port that handles wood, steel, raw 2.4.2. South Port 2.4.2. South There are 2 container terminal operators - ICT and E1CT - for three container berths that Pier materials, and auxiliary feed from a total of 17 berths. Currently, 9 companies operate piers 9 companies operate materials, and auxiliary feed from a total of 17 berths. Currently, Hyundai Steel and Dongkuk Steel. by in North Port, and there are also piers operated Source Source 2-11] South Port at Incheon Port [Figure

Facilities in Inner Port of Incheon Port 2-13> Facilities in Inner
Facilities in North Port of Incheon Port

Berthing Capacity Transit Shed Open Pier Unloading Storage Category Length Capacity (k No. of Berth Depth of No. of Area Yard Area (m) Tons) (50k Ton-level) Water (m) Units ( ) ( ) ㎢ ㎢ Total 17 (3) 11`14 8 77 643 4,298 13,900

Dongbu 3 (3) 14 3 32 190 840 2,520

Dongbang 3 (2) 11`14 1 9 91 770 2,330

CJ 2 11 1 10 90 420 1,460

INMT 1 11 1 10 48 288 660 Pier Daeju 3 11 2 16 94 700 1,710

INTC (Lumber) 2 11 - - 48 450 920

Hyundai Steel 2 (2) 11 - - 57 560 3,100

Dongkuk Steel 1 (1) 11 - - 25 270 1,200

Source: IPA, "Port of Incheon-The Northeast Asian Hub Port, Moving Towards Becoming a Global Hub Port", 2019, the contents of p.10 are revised and edited by the author

[Figure 2-12] North Port at Incheon Port 073 CHAPTER 02 Skill-Gap Analysis of Korean Port Workers

Source: IPA, “Port of Incheon-The Northeast Asian Hub Port, Movin Towards Becoming a Global Hub Port”, 2019

2.4.4. New Port

It is a container-dedicated port with 6 berths that can accommodate 12,000 TEU ships and is equipped with the latest facilities. In 2025, a fully automated container terminal with a pier length of 1,050m will be operated, and by 2040, two berths of 700 m in total are scheduled to be developed.

In addition, the port hinterland of 660,000m2 and 540,000m2 is scheduled to be developed by 2020 and 2022 respectively, and the port hinterland of 940,000m2 will be developed through private investments. - - - 2025 2040 Future Future 2020 2022 2022 ∼ ∼ ∼ 2025 410m (Jun. 2015) 390m (Apr. 2017) 380m (Nov. 2017) 380m (Nov. 420m (Mar. 2016) Operating Time Operating 2018 2020 2018 Completion Private Investment 460 460 460 1380 5,160 2,400 1,200 1,200 2,760 (k TEU) ) ㎢ Unloading Capacity Unloading 660 940 540 410 2,550

CY Area ( ) ㎢ 210 210 960 480 480 630 210 ( 1,260 2,220 CY Area - - Area Area 1 Area 2 Area 3 800 350 350 350 800 Pier 2100 1050 1600 3,700 Length (m) ------HJIT SNCT Company Operating Operating Total Phase 1-2 Phase 1-1 Total Development Phase Phase IPA, IPA, "Port of Incheon-The Northeast Asian Hub Port, Moving Becoming Towards a Global Hub Port", 2019, the contents of p.8 IPA, “Port of Incheon-The Northeast Asian Hub Port, Movin Towards Becoming a Global Hub Port”, 2019 Towards Northeast Asian Hub Port, Movin “Port of Incheon-The IPA, IPA, IPA, "Port of Incheon-The Northeast Asian Hub Port, Moving Becoming Towards a Global Hub Port", 2019, the contents of p.8 are revised and edited by the author and edited by revised are are revised and edited by the author and edited by revised are Subtotal Subtotal Phase 1-2 Phase 1-1 :  :  :  Development Development Source Source at Incheon Port Plan Port Hinterland Development New 2-16>

Status of Facilities and Development Plan of New Port at Incheon Port Port at Incheon New Plan of of Facilities and Development 2-15> Status

2.5.1. Total Throughput

The total throughput of Incheon Port increased by an annual average of 0.8% from 148 million tons in 2011 to 157 million tons in 2019. In particular, the container throughput grew by 5.6% during the same period from 2 million TEUs to 3.09 million TEU.

As of 2018, due to such an increase in throughput, the production-inducing effect was $17.9 billion, the added-value-inducing effect was $6.01 billion, and the employment- inducing effect was 134,595 persons. The total output of Incheon Port accounts for 33.8% of the total output of the Metropolitan City of Incheon, making it a very important industry for Incheon.6

Throughput at Incheon Port (2011~2019) (Million Tons, Million TEUs)

2011 2012 2013 2014 2015 2016 2017 2018 2019 CAGR 075 Bulk & Container 148 144 146 150 158 161 166 163 157 0.8% CHAPTER

Container 2.00 1.98 2.16 2.34 2.38 2.68 3.05 3.12 3.09 5.6% 02 Source: Ministry of Maritime & Fisheries (MOF) & https://new.portmis.go.kr Skill-Gap Analysis of Korean Port Workers

[Figure 2-14] Throughput at Incheon Port (2011~2019)

(Million Tons) (Million TEUs) 170 3.50 3.05 3.12 3.09

2.68 3.00 160 2.34 2.38 2.50 2.16 2.00 1.98 2.00 150 166 1.50 161 163 158 157 150 1.00 148 140 144 146 0.50

130 0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total(Left, Bulk & Container) Container(Right)

6 https://www.icpa.or.kr - cargo (000 TEUs) 4.9% -1.9% -0.6% -6.7% -0.6% 18.8% 43.1% 27.3% 19.7% CAGR -21.8% -100.0% palletized and method, 0 48 2019 647,868 329,762 977,630 207,596 211,407 953,803 741,471 1,695,274 3,091,955 lift-on/lift-off a 0 32 through 2018 973,606 703,133 683,450 283,084 966,534 229,696 248,367 1,676,739 3,121,368 deck the on loaded cargoes using carferry ships operating between between operating ships carferry using cargoes 16 8 2017 be 10,240 665,465 748,681 330,940 230,374 236,278 826,422 3,048,415 1,491,887 1,089,861 can , 2019.7, p. 622 ˼ , 2019.7, p.477 ˼ containers 28 2016 252,845 822,309 687,122 336,270 179,540 211,646 442,589 569,464 2,679,504 1,202,932 addition, In gangway. ICT or HJIT CJKE E1CT SNCT and RO/RO (Roll-on/Roll-off) Sub-total Sub-total 7 stern Total Others Category the Inner Port Glossary of Logistics and Shipping Terms ˹ IPA Golden Harbor :  Glossary of Logistics and Shipping Terms Meanwhile, the container throughput of Inner Port and Golden Harbor is LO/LO (Lift- 2.5.2. Container Port New of opening partial the since rapidly grown Port has Incheon at throughput The ˹ a uses that and equipment, unloading and loading separate using without unloading and loading for used be can that method a is a ramp through into the window for land production or loads or unloads a trailer container with a chassis attached to the container, from Shipping Gad a method that combines multiple methods. Korea it can be stated that is Therefore, can be unloaded with a forklift. get, a crane or a derrick (a crane mounted on a ship). Most of the bulk and container ships use this method. Korea Shipping Gadget, mounted on a ship). Most of the bulk and container ships use this method. Korea or a derrick (a crane a crane RO/RO is a method introduced long time ago in ferry boats and railway ferries (train ferries) that transport cars and freight cars. It cars and freight ferries) that transport ferries (train long time ago in ferry boats and railway RO/RO is a method introduced LO/LO is a vertical unloading method, and refers to a method of loading and unloading cargo using unloading equipment such as such unloading equipment using cargo and unloading loading of method to a refers and method, unloading vertical a is LO/LO Port Port New South 8 7 Source on/Lift-off) ports in China. Incheon Port and the at Incheon Port (2016~2019) 2-18> Changes in Container Throughput

(000 TEUs) 1,800

1,500

1,200

900

600

300

0 2016 2017 2018 2019

New port South Port Golden Harbor Inner Port

2.5.3. General and Bulk Cargo

In 2019, total throughput of general and bulk cargo at Incheon Port decreased by 4.7% compared to 2016, but cargo for wood & general cargo, cement, liquid and chemical products increased by 3.7%, 2.6%, and 1.9%, respectively. In particular, liquid and chemical cargoes 077 CHAPTER account for nearly half of the total throughput of Incheon Port, and when general cargo,

wood and steel cargo are added, these cargoes account for 71.6% of the total. 02 Skill-Gap Analysis of Korean Port Workers

On the other hand, coal consumed for power plants in Outer Port for power supply in the metropolitan area accounts for 14.2% and cement supplied for construction in the metropolitan area accounts for 7.5%. The percentage of sand decreased sharply from 13.5% in 2016 to 8%.

Such trends in general and bulk cargo throughput at Incheon Port highlight that Incheon Port serves as a gateway port in the metropolitan area for handling general cargo of major consumer goods and finished goods that are difficult to be containerized.

General and Bulk Cargo Throughput at Incheon Port (2016~2019) (000 RT)

Category 2016 2017 2018 2019 CAGR

General Cargo & Steel 25,281 25,675 21,492 20,005 -7.5%

Wood & General Cargo 3,018 2,769 3,106 3,365 3.7%

Grain 2,968 2,910 2,721 2,812 -1.8%

Cement 7,179 7,436 7,217 7,764 2.6%

Steel 2,179 2,353 2,356 2,182 0.0% 60,000 1.9% 0.2% -4.7% CAGR -51.5% 55,523 2016 2017 2018 2019 Wood & General & General Wood 3.3% Cargo, 52,193 Grain, 2.7% Grain, Cement, 7.5% Sand, 1.8% 50,458 Steel, 2.1% General Cargo & Steel Cargo General 19.4% 47,692 50,000 2019 1,832 50,458 14,625 103,043 2019 40,000 2018 4,137 55,523 15,357 111,909 Coal, 14.2% 49.0% 30,000 25,675 25,281 Liquid & Chemical 2017 10,271 52,193 15,810 119,416 21,492 20,005 20,000 16,095 15,810 15,357 14,526 14,625 2016 Wood & General & General Wood 2.5% Cargo, 16,095 47,692 14,525 118,937 Grain, 2.5% Grain, Cement, 6.0% Steel, 1.8% 10,271 General Cargo & Steel Cargo General 21.3% 7,764 Sand, 13.5% 7,436 7,217 10,000 7,179 4,137 3,365 3,018 3,106 2,968 2,910 2,721 2,812 2,769 2,353 2,356 2,182 2,179 1,832 2016 0 Coal Steel Sand Grain Coal Total Sand (000 RT) Cement Category Coal, 12.2% 40.1% Liquid & Chemical Liquid & Chemical Revised and supplemented by researchers based on the content from IPA & https://new.portmis.go.kr IPA on the content from based researchers by and supplemented Revised :  As of 2019, the throughput of North Port, which is a dedicated bulk cargo port, has port, has As of 2019, the throughput of North Port, which is a dedicated bulk cargo General Cargo & Steel Cargo General Wood & General Cargo & General Wood Liquid & Chemical decreased by 1% per year on average since 2016, but still it is the highest at 31.6% of total at 31.6% of total since 2016, but still it is the highest 1% per year on average decreased by general & bulk cargo throughput in Incheon Port. The throughput of Songdo Port, which is accounting for 23.2% 2% annually, dedicated to LNG and other liquid cargo, has increased by & bulk cargo throughput. of the total general [Figure 2-17] Percentage of General and Bulk Cargo at Incheon Port (2016~2019) and Bulk Cargo of General 2-17] Percentage [Figure Source at Incheon Port (2016~2019) Throughput Bulk Cargo and 2-16] General [Figure 078 Skill Enhancement to Improve Port Operations in India On the other hand, the cargo throughput in South Port located close to Aam Logistics Complex, in which a large number of logistics centers mainly handling containers, frozen and refrigerated cargoes are based, decreased by 20.5% per year on average since 2016 and is expected to decline further.

Meanwhile, the cargo throughput of Inner Port, which used to handle most of the cargoes at Incheon port, has decreased on average by 3.7% per year since 2016. In the long run, some of the piers will be developed as a waterfront area, so the cargo throughput is expected to decline gradually in Inner Port.

Throughput of General and Bulk Cargo by Port at Incheon Port (2016~2019) (000 RT)

Category 2016 2017 2018 2019 CAGR

Inner Port 19,403 19,631 17,142 17,302 -3.7%

South Port 22,854 19,051 12,426 11,491 -20.5%

North Port 33,528 36,166 35,910 32,541 -1.0%

Golden Harbor 2,940 3,719 3,935 2,676 -3.1% 079

Songdo 22,570 23,516 26,223 23,933 2.0% CHAPTER

Others 17,643 17,334 16,273 15,101 -5.1% 02

Total 118,937 119,416 111,909 103,043 -4.7% Skill-Gap Analysis of Korean Port Workers

Source: Revised and supplemented by researchers based on the content from IPA & https://new.portmis.go.kr

[Figure 2-18] Throughput of General and Bulk Cargo by Port at Incheon Port (2016~2019)

(000 RT) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 19,403 19,631 Inner Port 17,142 17,302 22,854 South Port 19,051 12,426 11,491 33,528 36,166 North Port 35,910 32,541 2,940 3,719 Golden Harbor 3,935 2,676 22,570 23,516 Songdo 26,223 2016 23,933 17,643 2017 17,334 2018 Others 16,273 2019 15,101 South Port 11.2% Inner Port, 16.8% North Port, 31.6% 2019 Others, 14.7% Golden Harbor, 2.6% Golden Harbor, Songdo, 23.2% South Port 19.2% Inner Port, 16.3% 2016 North Port, 28.2% Percentage of Throughput of General and Bulk Cargo by Port at Incheon Port Port at Incheon by and Bulk Cargo of General of Throughput Percentage (2016~2019) Others, 14.8% Songdo, 19.0% Currently, there Currently, are 4 container terminals at Incheon Port: SNCT and HJIT in New Port, New Port is a semi-automated facility that uses 22 rows of RMQC and ARMGC that Furthermore, since the opening of New Port, container handling except that of ferry New Port, container handling except that of ferry Furthermore, since the opening of 2.6. Status of Container Terminals at Incheon Port 2.6. Status of Container Terminals Port were handled mainly in Inner Port in the As described above, containers at Incheon Golden Harbor, 2.5% Golden Harbor, ICT and E1CT in South Port. SNCT and HJIT plan to jointly operate terminals by establishing an integrated terminal operating company sometime in 2020 for the efficient operationof terminal and their facilities and equipment. productivity and Ofefficiency. course, at the present time, there is not a big difference in productivity as New Port has insufficient throughput compared to its designed but capacity, the difference will grow significantly in the future. processing in South Port will be stopped. can accommodate 12,000 TEU vessels, whereas South Port is a conventional one that uses 18 rows and 13 rows of RMQC and RTGC. Thus, there is a fundamental difference in Port has been transferred to New Port. The importance of New Port is expected to grow of New Port is expected to grow to New Port. The importance Port has been transferred significantly in the future due to the central government’s policy to promote New Port and on New Port. In particular, when a fully automated container handling policies centered scheduled to be completed in 2025 through length of 1,050m, which is terminal with a quay container and Port New in handled be will containers will be opened, all stages, 1-2 the past, but its throughput declined by opening of container terminals in South Port such as of container terminals in South Port such as opening past, but its throughput declined by and CJKE. SNCT E1CT, ICT, proportion of cargo throughput in South considerable boats in Inner Port has stopped and a [Figure 2-19]  2-19] [Figure 080 Skill Enhancement to Improve Port Operations in India

Container Terminal at Incheon Port

New Port South Port Category SNCT HJIT ICT E1CT

410m (Jun. 2015) 420m (Mar. 2016) Opening Year 2004 2009 390m (Apr. 2017) 380m (Nov. 2017)

480,000 480,000 249,000 109,753 Yard Total Area (m2) (800m × 600m) (800m × 600m) (300 × 415) (259 × 424)

Overview Quay Length (m) 800 800 600 259

Front Depth (m) -16 -16 -14 -12

Capacity (TEU) 1,200,000 1,200,000 552,000 210,000

General Container 33,096 30,060 15,182 4,700

Reefer Container 1,080 864 300 280 Stacking DG Container 792 336 180 60 Capacity (TEU) Empty Container 7,155 11,700 4,300 3,360

Stacking Capacity 42,123 42,960 19,962 8,400

7 7 5 2

RMQC 22 Row × 5 22 Row × 5 18 Row × 5 13 Row × 2 081 CHAPTER 18 Row × 2 18 Row × 2

Major RMGC / RTGC 28 (ARMGC) 28 (ARMGC) 14 (RTGC) 6 (RTGC) 02 Equipment Yard Tractor 43 41 25 10 Skill-Gap Analysis of Korean Port Workers

Yard Chassis 67 46 35 25

Reach Stacker 3 3 2 3

Empty Handler 3 3 1

Comparison of Yard Equipment in Container Terminals (RMGC vs. RTGC)

Yard Equipment RMGC RTGC

Mechanical High efficiency Low efficiency Productivity (20-25 are handled per hour) (15-20 are handled per hour)

Wide width (31.24m), high stacking Small width (23.5m), low stacking Block Structure (5 columns, 10 rows) (4 columns, 6 rows)

Applied System Semi-automated Conventional

Main Equipment Features of New Port Container Terminal at Incheon Port

Category Equipment Details

• Super post-panamax RMQC (Rail Mounted • Features : Simultaneously handles two 20FT containers Quay Crane) Operations • Capacity : 45 containers/hour Equipment ARMGC (Automated • Features : Can stack 5 tiers of containers (Unmanned remote control Rail Mounted Gantry system) Crane) • Capacity : 36 containers/hour

The while using PP.161- provide Efficiency 2, to vector is (DMUs) Efficiency. No. input 23, Technical Units Super the of Vol. Efficiency and Making Super Safety, Analysis increase & “An Analysis) study, Decision this In research, Environment proportionally between Details Envelopment can inputs. (2017)’s (Data Maritime DMU efficiency of Jang DEA multiple due to the nature of this study. 9 the efficient relative Society similar an Woon-Jae the is include using much Korean study the how workers measures of this products Yard Tractors are designed and manufactured to minimize the driving driving the minimize to manufactured and designed are Tractors Yard engine HP. ability of 65t and highest yard with tractive distance in the suitable for Tandem loading capacity and is Chassis has 65t of Yard Mode. of 5 tier stacking of full containers. is capable Reach Stacker in that • • • of Journal measures used operating method and majority port methods DMU, Efficiency”, similar a regarding analysis programming efficient Equipment Yard Chassis Yard Yard Tractors Yard Reach Stacker Reach Stacker obtain DEA/Super for The paper to linear a Using 2017. is 30, theoretical information Labor techniques April method Port major However, However, in the container terminal for which works have been standardized, the the container Therefore, the analysis of port productivity in this study is mainly focused on 3.1. Overview and Analysis Procedures 3.1. Overview 3.1.1. Overview cases where relevant organizations or there has not been any in Korea, Currently, of 167, DEA similar ranking Category Equipment Transporting Transporting 9 A terminal operation. Productivity per worker is analyzed based on the operating personnel and personnel and is analyzed based on the operating Productivity per worker terminal operation. the throughput in each container terminal and and bulk general terminal. Here, the productivity utility through a practical increase is intended to and workforce operators terminal analysis for than a theoretical approach approach rather practical analysis of productivity related to terminal operation has been partially carried out. operation analysis of productivity related to terminal on the overall productivity of terminals rather than productivity per worker. Although it is Although per worker. than productivity productivity of terminals rather on the overall for have carried out an analysis of productivity per worker might operators possible that the their own purposes, such analysis results have remained confidential as they can cause not only conflicts with the Port Labor Union but also other controversies in That society. is why to the outside even if they exist within the operators. such analysis data cannot be disclosed terminal operators conduct an analysis of the productivity of port operators and workers. It and workers. of port operators conduct an analysis of the productivity terminal operators is andprimarily thedue Port to a sensitive conflict structure between the terminal operators Labor Union. In addition, since the commercialization of port workers belonging to the Port Labor Union, the operators have sought to improve operational efficiency and productivity more focused it has is, That internally. facilities and equipment of modernization through 3. Analysis of Port Productivity in Korea of Port Productivity 3. Analysis 082 Skill Enhancement to Improve Port Operations in India 3.1.2. Analysis Procedures

Against this background, this study is to analyze the productivity of container terminals and the productivity per worker at container and general and bulk terminals over the following six procedures.

First, based on the literature research which the available data is collected and analyzed, this study identifies the current situation and operation status of domestic ports, throughput and cargos handled. Also, it collects and examines materials related to terminal operations of existing port management and operating entities (mainly port authorities) and related research institutes, and productivity analysis of port workers. However, as mentioned above, there is no official document related to this. The study of these documents is limited to the examination of basic data on the current state of operation by port facilities and terminals.

Based on this, it was previously suggested that Incheon Port is chosen as the target port as it is a comprehensive port that has similar characteristics with the target ports in India 083 and it handles containers and general and bulk cargo evenly at a specific ratio. CHAPTER

Like most public corporations in Korea, four port authorities, which actually manage and 02 Skill-Gap Analysis of Korean Port Workers operate ports, generate Key Performance Indicator (KPI)10 data as macroscopic indicators of the port as a whole, rather than analyzing by terminals. Therefore, data of port authorities doesn’t really help with this study.

maintaining the current efficiency. In case of some input variables such as operating personnel, loading and unloading income, and the number of accidents required in this study, it is difficult to collect such data because such data are classified as confidential at some terminals or operators. The analysis was conducted on all ports including Busan Port and Incheon Port. Thus, there are clear limitations that this study is focused primarily on macroscopic analysis, such as determining labor efficiency and labor efficiency rankings for each port but not individual terminal. In this study, rather than this theoretical approach, practical productivity analysis was performed for each terminal after discussions with terminal officials. However, the analysis results of some terminals were treated as confidential, so container terminals were presented in groups of New Port and South Port, and general and bulk cargo terminals are presented in groups of Inner Port and North Port. 10 KPIs are performance indicators for the key elements that must be managed in order to successfully achieve goals of public corpo- rations in Korea. The KPI answers the following question: “What really matters to shareholders?” It is a performance evaluation stan- dard that combines several key data that affect future performance. Previously, performance was evaluated based on past financial indicators such as profits, sales, and expenses, but financial results are insufficient to predict future performance in that they are performances of past activities and they also lack the information on the process. The reason why processes are important for mea- suring performance is that not only short-term goals can be achieved by managing them, but mid- to long-term goals can also be reached. The ultimate purpose of developing and using KPIs is to motivate members in the direction the corporation wants. There- fore, the most important principle to consider when developing KPIs is whether you can motivate members through the use of KPIs. If an undesirable KPI is used, the focus of the members’ thoughts and actions will be directed in the wrong direction, which can ulti- mately lead to a decrease in the motivation of the members and lower the overall performance of the company. The importance of management, controllability, and measurability should be considered when developing KPIs. First, the importance of management means that performance indicators should be selected based on key factors that can represent business activities, and through this, the feasibility of performance evaluation can be improved. Second, controllability means that workers have control over their work within the scope of their work authority. If the worker does not have control over his or her work, it can lead to a decrease in motiva- tion. Lastly, measurability is a basic element to be used as a KPI. That is because the final outcome and problem can be recognized only if KPIs can be measured. (Naver Current Affairs & Economics Glossary, Nov 2017, Ministry of Strategy and Finance) Feedback Terminal Operators Terminal Surveys & Interviews (2) & Interviews Surveys • Organization • Equipment & Port Workers & Workers • Performance Evaluation on Operations Literature Survey Literature Selection of Methodology Selection of Target Port & Cargo Port & Selection of Target Analysis on Productivity of Terminals & Port Workers in Korea & Port Workers of Terminals Analysis on Productivity Port Operator : IPA Port Operator Surveys & Interviews (1) & Interviews Surveys Target Cargo : Container, General cargo General : Container, Cargo • Target Port : Incheon • Target Productivity by Terminals & Cargo Terminals by • Productivity ) (Academic vs. Practical Evaluation on Port Workers Productivity • Practical Current Status of Ports & their Operation in Korea Status of Ports & their Operation • Current Type Cargo by their Features & Volume, • Analysis of Throughput & Port Labors (KPI or similar ones) with Port Operators related Index • Existing Productivity : Author based on the related data : Author based on the related Data by Piers & Terminal Operators Piers & Terminal • Data by Status & Plan of Facilities of Piers & Terminals • Current (KPI) Operators on Terminal Productivity • Macro-level As part of the port logistics industry, cargo handling work at port is largely divided into largely divided cargo handling work at port is of the port logistics industry, part As 3.2. Cargo Handling Work and Procedures at Port and Procedures Handling Work 3.2. Cargo at Port Handling Works of Cargo Process 3.2.1. General In addition to the results of these interviews, a practical analysis method necessary for necessary for analysis method results of these interviews, a practical In addition to the In order to solve the lack of related data, this study collects data that can be obtained obtained be can collects data that study this data, related lack of the to solve order In with the executives, on-site interviews to have extensive it is indispensable After all, arrival/departure – berthing/unberthing – documentation (inward/outward) –loading/ arrival/departure – berthing/unberthing – documentation (inward/outward) Source [Figure 2-20] Process to Analyze Port Operation Productivity (Skill-Gap) in Korea Productivity to Analyze Port Operation 2-20] Process [Figure and the methodology is supplemented and confirmedby receiving feedback from existing approach practical a this study focuses on used in analysis method interviewees. The that reflects the opinions of related operatorsrather than a theoretical approach that has limitations in terms of data collection and practical use, so that Indian officials can facilitate the required work in the future. interviews, the management and operation status of terminal operation organization, organization, operation status of terminal and operation interviews, the management are examined. and port workers personnel, equipment and operation is sought, manpower, albeit partially, and of equipment, operation, productivity analysis through interviews with relevant workers and officials of the port operator (PA). of the port operator and officials workers with relevant through interviews the each terminal. Therefore, through in charge of operating managers, and workers 084 Skill Enhancement to Improve Port Operations in India unloading – anchoring/berthing for ships’ entry and departure process, and storage, transportation – consignee for inland transportation process.

In accordance with the flow of cargo in the entry/departure process, the work is divided into maritime cargo transportation, ship agency, tugboat, sea mule, line handling, shipping agency, customs clearance (agent), plying boat, port stevedoring, anchorage, inspection, stevedoring equipment rental, shipbuilding and repair, ship refueling, ship supplies, ship food, water supply, quarantine, disease and disaster prevention, cleaning and crew training. In the meantime, the inland transportation process is classified into warehouse, cargo transportation, cargo transportation arrangement, cargo packaging, container manufacturing and repair, container rental, and overhead expenses. Also, the port industry is broadly classified into port construction and maintenance, other port-related engineering, related organizations and associations, and ship rescue business.

In order to fulfill the needs of the Indian side, this study primarily analyses the productivity of workers, focusing only on loading & unloading among the above-mentioned entire processes. 085 CHAPTER

[Figure 2-21] Classification of Port Industry and Cargo Handling Activities in Port Area 02 Arrival & Departure Processes of Inland Transport Skill-Gap Analysis of Korean Port Workers Vessels Processes

Anchorage Arrival Procedure/ (Outer harbor) Departure Procedure (Outer harbor)

Arrival & Berthing& Arrival Procedure Loading & Anchoring & Shipper or Departure of Storage & Transport Ships Off-shore Departure Procedure Unloading Berthing Consignee

• Shipping • Pilotage • Shipping Agency • Loading& • Shipbuilding & Repair • Bonded Warehousing • Shipper or (Cargo & • Towing • Customs Unloading ship Retueling • Refriger ated Warehousing Consignee Passenger) • Linesman Clearance • Lashing & Unlashing • Water Supply • Inland Trucking of • Freight • Etc. • Communication • Transport & Shuttle • Marine Supplies Containers, Bulky Cargoes, Fonwarder • Etc. • Inspection & Etc. • Food & Water supply Special Cargoes • Equipment Rental • Quarantine Control • Freight Brokage • Etc. • Cleaning Ships • Packing & Packaging • Etc. • Container Repair & Rental • Security • Etc.

Activities in Port Area • Port Construction, Maintenance & Repair • Port-related Engineering • Related Associations • Ship Rescuing, etc.

Source: Author based on the related data

The cargo to be analyzed is limited to container and general cargo which are globally standardized in operation and transportation. This is because when targeting all bulk cargoes, types are highly diverse and there are huge differences in work environment, input ), 6 Y/T units per RMQC and 2 Y/C units per Y/T are applied. ), 6 Y/T units per RMQC and 2 Y/C units 11 Cargo Handling Process, and Composition of Equipment and Manpower at at Manpower and Equipment of Composition and Process, Handling Cargo Port In addition, there are equipment (mainly, fork lift) and personnel related to CFS CFS related to personnel lift) and fork addition, there are equipment (mainly, In Yard operation is a stage for container transfer and storage work in connection with the and storage is a stage for container transfer operation Yard On the basis of the EDI data of the loading/unloading list received from the shipping 3.2.2.1. 3.2.2.1. and the main ship operations terminal is largely divided into The work at container 3.2.2. Container 3.2.2. Container building office. the operation unload containers from Semi-automated equipment is a type of equipment that uses RMGC, especially ARMGC, of yard equipment to remotely load and load and equipment to remotely Semi-automated equipment is a type of equipment that uses RMGC, especially ARMGC, of yard

11 operation, and container repair and cleaning workers at terminal, but in Korea, most of of most Korea, in but terminal, at workers cleaning and repair container and operation, so and maintenance work are outsourced to outsourcing companies, these facility operation the terminal operator. by workers they are not included in the port operation main ship operations. Basic yard equipment includes RMGC and RTGC as described above. However, among RMGCs, there is ARMGC that operates by remote control in the operation office. main ship, such as balance processing, yard marshalling, and work scheduling considering main ship, such as balance processing, and work condition. Through this process, the main ship condition, yard condition, used includes are put into the work. The equipment and gang workers necessary operators RMQC (STS, Ship-to-Shore), Yard Tractor (Y/T), and Yard Chassis (Y/C). In Korea’s container terminal (semi-automated per 1 tallyman main ship, 1.5 persons per 1.33 RTGC, ~ 1.5 persons per equipment for R/S, E/ H and Y/T. the on unloading and loading for established is plan optimal an operator, the and company equipment and workers is put into operation. The gang of container terminal includes of container terminal includes The gang is put into operation. equipment and workers RMQC operators, signalman, tallyman, foreman, yard equipment operators (RMGC or RTGC, Reach Stacker(R/S), Empty Handler (E/H)), Y/T operators moving the containers back and Container At Incheon workers. gang lasher and yard the and ship main the between forth is 2.0 persons per RMQC, 1.5 signalmen, 2 persons per gang number of workers the Terminal, the yard operations, but since they are interrelated, a gang consisting of all the related a gang consisting of all the related but since they are interrelated, the yard operations, equipment equipment and facilities for each type of freight, and it is very difficult to specify because types. completely different in they are operated 086 Skill Enhancement to Improve Port Operations in India [Figure 2-22] General Flow of Activities in Container Terminal and Necessary Equipment & Workers

Ship-Side Operation CY & Gate / Terminal & CFS Operation

Unload Transfer CY & CFS Operation

Load

Gate

• RMQC • RMGC, ARMGC RTGC, Reach Stacker Equipment • Yard Tractor(Y/T) • Yard Chassis(Y/C) (R/S), Empty Handler Fork Lift(F/L)

• Operators of Equipment • Part Chief & Yard Planner • Foreman • Operators of Equipment • Signalman • Custom Clearance Workers • Taily • CFS : Manager, Workers of CFS & On-dock, etc. (Usually outsourced in Korea) • Managers & Workers of Empty Container, Dangerous Cargo, Refrigeration • Lashing-man • Repair & Cleaning of Containers and etc. (Usually outsourced in Korea) • Planners(General & On-board) • Guards

Necessary Equipment & Workers by Activities in Container Terminals 087

Necessary Equipment Necessary Workers CHAPTER Activities Ship-Side CY CFS Ship-Side CY CFS 02 • Operators • Operators • ARMGC, Skill-Gap Analysis of Korean Port Workers • Foreman • Part Chief (or RMGC, RTGC Loading & • Signalman Manager) • RMQC • R/S, T/H, • F/L • Operators Unloading • Tallyman • Yard planner Empty • Lasher • Customs broker Handler, F/L • Planner • Other workers

Transfer • Trailer, • Y/T & Y/C • Y/T & Y/C • Operators • Operators • Operators (Transport) Truck, F/L

• Manager • Planner Storage & • F/L & • Customs Others others broker • Other workers

3.2.2.2. Main Container Terminals at Incheon Port

As mentioned earlier, there are four container terminals at Incheon Port: SNCT and HJIT in New Port, and ICT and E1CT in South Port. The biggest difference is the yard handling equipment. New Port has an automated ARMGC, while South Port has a conventional RTGC. The handling capacity of New Port (2.4 million TEU) is more than three times higher than that of South Port (762,000 TEU) whereas the number of workers for loading and unloading is not much different between New Port and South Port at 154 and 157, respectively. 2 3 1 10 25 210 283.1 329.8 E1CT 6 (RTGC) 259m / 12m 268 157 110 South Port 5 2 3 25 35 552 ICT 683.5 647.9 14 (RTGC) 600m / 14m 7 3 2 34 49 HJIT 1,200 708.1 741.6 800m / 16m 28 (ARMGC) 510 154 124 New Port 7 3 3 43 67 1,200 973.6 953.8 SNCT 800m / 16m 28 (ARMGC) Total Operation 2018 2019 R/S Y/T Y/C E/H RMGC RMQC Operation (Outsourced) Operation Index Directly Hired Length of Pier / Draft Cargo Handling Process, and Composition of Equipment and Manpower at Port and Manpower and Composition of Equipment Handling Process, Cargo Annual Unloading Capacity (000 TEUs) Annual Unloading Capacity Interviews with IPA, Korea Port Logistics Association (KOPLA) and terminal operation managers and terminal operation Port Logistics Association (KOPLA) Korea with IPA, Interviews No. of (000 TEUs) (2020) :  Throughput Workers Workers Korea’s general and bulk cargo terminal operators handle cargoes based on the following operators and bulk cargo terminal general Korea’s specializing berths for each type and packing condition of cargoes, productivity First, by 3.2.3. General and Bulk Cargo 3.2.3. General 3.2.3.1. Moreover, in accordance with the operation goal for the year 2025, a new terminal new terminal the year 2025, a goal for the operation in accordance with Moreover, Equipment No. of Major the ship arrangement according to the cargo throughput, the berthing rate is improved is improved according to the cargo throughput, the berthing rate the ship arrangement not only the and the waiting time is minimized. Third, the ship allocation plan includes on the latest basic berth schedule, but also the total manpower and equipment plan based stevedoring performance figures and confirmed stevedoring data. principles: is improved and an optimal working environment is created. Second, by flexibly operating Source

Overview of Container Terminals in Incheon Port of Container Terminals 2-25> Overview

The following principles are applied to the general and bulk cargo handling equipment.

First, there are many different shapes and types of bulk and general cargoes. Harbor crane, which is a basic equipment that can handle various types of cargoes, is used as a loading/unloading equipment. To handle various weights, the specifications of harbor crane are divided into heavy cargo handling and general cargo handling cranes. Second, a forklift is used in principle for loading and unloading general goods. And heavy cargo handling, general miscellaneous cargo handling, and onboard work are also operated by ton. Third, it is necessary to provide a payloader and excavator, which are essential equipment for handling bulk cargo mixed in a cargo ship, to maintain the consistency of the unloading service. Fourth, as transport equipment, a trailer capable of loading various cargoes, a scale required for dock operation, and a cleaning vehicle are also provided so that there is no obstacle to port operation. Fifth, the related equipment is rented from outside equipment companies to minimize fixed costs. 089 CHAPTER

The number of workers is usually composed of gang units such as foreman, winch man, and workers alongside the ship and workers onboard, and 6 to 14 people are employed per 02 Skill-Gap Analysis of Korean Port Workers gang depending on the type of cargo.

[Figure 2-23] General Flow of Activities in General & Bulk Cargo Terminal and Necessary Equipment & Workers

Receive Ship Information Preparation Discharging Transport out of the Berth • Discharge plan • Allocate berth and establish • Implement workforce by hold • Check yard Import • Receive discharge list work plan • On-board operation and • Notify to Gate • Ship specifications • Allocate yard and storage discharging • Transport out of the terminal • Check calling schedule • Equipment and workforce • Categorize stocks by yard and allocation plan B/L Receive Ship Information Preparation Discharging Loading Activities • Loading plan • Allocate berth and establish • Check hold by cargo type • Categorize by destination and Export • Receive ship orders work plan • Implement workforce by hold loading • Receive loading list • check cargo location • Discharging cargo • Check loading status • Check calling schedule • Equipment and workforce allocation plan

Port Vessel Apron (Ship-side, ship Stock & Out of (On-board) Loading & Unloading) Yard & Warehouse the Terminal Entry & Exit Security & Gate Stowage Work Shipsice Work Stock & Release Work Management • CSU* of Hopper • Harbor crane • Excavator, Pay-loader, Dump Truck(grain) • Guard, system, etc. (grain), Belt • Grabs, Pallet fork, Hopper • Forklift, Trailer (wood, miscellaneous) Equipment Conveyor & etc. according to cargo type • Forklift(wood miscellaneous) • Foreman & Workers (on-board) including lashing & unlashing, inspection & etc. Workers • Operators (or Drivers) of equipment both in the ship, ship-side, yard & warehouse • Others such as weighing, weighing, customs clearance, cleaning, sanitization, yard & warehousing management, & etc.

- - 11 450 / INTC INTC (Lumber) - - 11 700 / Daeju Yard & Warehouse Yard Customs broker Other workers Operators Part Chief(or Manager) Other workers Operators Operators Manager Planner • • • • • • • • •

- - 11 288 / INMT 9,600 6,038 6,025

Necessary Workers Necessary - - CJ 11 North Port 420 /

Ship-Side - - 14 bang Winch man Foreman Hold Workers (Lashing & unlashing, Inspection, etc.) Other workers Operators 1,330 / Dong- • • • • • - - 840 / 14 Dongbu 1) 12.0 5 4 ∼ Dump Truck Trailer F/L Others Motor Grab Hopper Skid Loader Others 8,622 / 21,641 14,421 14,489 Yard & Warehouse Yard IPOC • • • • • • • • 7.7 Inner Port 2018 2019 Necessary Equipment Necessary G/C Ship-Side Dump Truck Trailer Harbor Crane Loader Skid Loader F/L Others Harbor Crane • • • • • • • Index 2) (000 Tons) (000 Tons) Throughput Length of Pier / Draft (m) Length of Pier / Draft Others In order to minimize fixed costs, most of the stevedoring equipment is rented from of the stevedoring equipment is rented from In order to minimize fixed costs, most 3.2.3.2. General Cargo Handling Terminals at Incheon Port at Handling Terminals Cargo 3.2.3.2. General goods at Incheon and bulk cargo of miscellaneous Port terminals that handle general Transfer Transfer Annual Unloading Capacity Storage & Storage Loading & Unloading Activities (Transport) Equipment No. of Major number of port workers at these terminals is 510 in Inner Port and 240 in North Port. at these terminals is 510 in Inner Port number of port workers of confirmed equipment is unknown. outsourcing companies, so the number in Incheon Port Terminals & Bulk Cargo of Major General 2-27> Overview

Necessary Equipment & Workers by Activities in General & Bulk Cargo Terminals & Bulk Cargo General Activities in by Workers Equipment & 2-26> Necessary

Index Dong- INTC IPOC1) Dongbu CJ INMT Daeju bang (Lumber)

Loader 3 ------No. of Major Skid Loader 3 ------Equipment2) F/L 11 ------

Port Staffs 61 22 41 4 5 11 11 Workers (2018) Workers 510 72 45 30 20 50 23

Note 1) IPOC operates 7 of 8 piers in Inner Port Note 2) Most operators owned their own operating equipment at 10-20% of the level of 1997, and most equipment is rented from external equipment rental companies depending on throughput. Source: Interviews with IPA, Korea Port Logistics Association (KOPLA) and terminal operation managers

3.3. Port Productivity Analysis for Incheon Port

3.3.1. Container

New Port terminal, which started its partial operation in 2015, is operating only at 60- 091 CHAPTER 70% of its loading and unloading capacity in 2019. Port hinterland logistics complex is continuously being developed, so there is still quite a bit of handling capacity available. On 02 the other hand, the terminals in South Port, which have been in operation since the 2000s, Skill-Gap Analysis of Korean Port Workers are handling excessive cargo at 117% and 157% of their handling capacity. The logistics cost tends to increase and efficiency is unlikely to be enhanced due to the absolute lack of yard and port hinterland logistics complexes.

In particular, the cascade effect unfolds in the existing shipping route through the recent global increase of larger container ship. Thus, when the changes in the shape of ships operated by route lead to the decrease in the number of small ships, the container handling performance of South Port, which is mostly used by small container ships operating mainly in Korea, China and Japan, will decline further, thereby accelerating the transfer container handling to New Port. In addition, as the government has plan to concentrate containers operations to New Port through various policies aimed at development of hinterland complexes, the concentration of container flows to New Port is expected to be further accelerated. 329.8 Throughput 2019 Throughput E1 283.1 210 157% South Port 647.9 ICT 683.5 Throughput 2018 Throughput 552 117% Capacity 741.5 61.8% HJIT 703.1 1,200 New Port New 953.8 79.5% SNCT 973.6 1,200 Container Throughput in 2019 compared to the Capacity by Terminal Operators Operators Terminal by to the Capacity in 2019 compared Throughput Container in Incheon Port in Incheon 0 800 600 400 200 (000 TEUs) 1,400 1,200 1,000 Gross berth productivity is per berth handling moves divided by total berthing time, time, total berthing Gross berth productivity is per berth handling moves divided by 3.3.1.1. Berth Productivity a factor evaluating the relationship between the In relation to berth productivity, The productivity of the container terminal calculated in this study is the productivity calculated in this study is the productivity The productivity of the container terminal With regard to the productivity of container terminals, the general concepts of related productivity (NBP or VR) were analyzed. during the which evaluates productivity through the volume of container cargo handled number of vans handled and gross berth time, gross berth productivity (GBP) and net berth number of vans handled and gross berth time, gross berth productivity (GBP) of berth and equipment, the ship berthing rate and the yard equipment rate, and the and the the yard equipment rate, and rate of berth and equipment, the ship berthing on the terminal operating calculated based were separately productivity of port workers throughput. compared to the workers the operating managers of each terminal and other workers. However, specific and detailed and only the result was calculated. Such productivitydata were confidential at each terminal results reflect the suitable equipment, and technology, operating system that can maximize port operation efficiency and minimize cost. It is determined to be not much different from terminals, including JNPT. the productivity of most Indian container indicators are well known as container handling operations within terminals have already handling operations indicators are well known as container been globally standardized. However, since results of operation productivity are not specifically calculated, this study systemized the calculations through with close cooperation [Figure 2-24]  2-24] [Figure 092 Skill Enhancement to Improve Port Operations in India total berthing time. Gross berth productivity, along with loading and unloading charges, is the most important indicator to review when choosing a terminal. Gross berth productivity is calculated based on the quantity of container cargo handled during the total berthing time from the moment when the first mooring line is tied to the bitt to the moment when the last mooring line is released from the bitt.

Net berth productivity is an index used by container terminals to purely calculate container throughput, and is per berth handling moves divided by net working time. Specifically, the productivity is evaluated based on the number of vans handled on board during the net working time. It means the quantity of container cargo handled during the berthing time from the moment the first container is unloaded from the ship to the moment when the work for the last loaded container is complete.

3.3.1.2. Equipment Productivity

Equipment productivity is divided into gross productivity (GP) and net productivity (NP).

093 Gross productivity is the moves divided by total crane hours or the number of vans CHAPTER handled on board per 1 quay gantry crane, and it refers to the quantity of container cargo

handled during the entire time allotted for the stevedoring team to be put into operation 02 (excluding dead time caused by power outage, breakdown, and reasons attributable to Skill-Gap Analysis of Korean Port Workers shipping companies). It evaluates the relationship between the gross cargo handled and the total equipment working hours.

The net equipment productivity is the moves divided by net crane hours or the net volume handled per quay gantry crane. Net equipment productivity evaluates the relationship between the van and the net crane working hours. The difference as opposed to the gross working hours is that the terminal’s downtime is excluded. Work downtime includes C/C․ T/C trouble, C/C․ T/C interference, rigging time, boom up-down time, meal time, and hull travel time.

3.3.1.3. Berth Occupancy and Yard Utilization Rate

The berth occupancy rate is an indicator of port efficiency that is expressed as a percentage by dividing the annual total berthing hours per berth by the annual operating hours.

Yard utilization is an indicator of the efficiency of a port terminal expressed as a percentage by dividing the average daily number of storage containers in terminal by the storage capacity in terminal yard. Calculation ) + 40m) × No. of calls to the berth ÷ (Pier Length Length (Pier ÷ berth the to calls of No. × 40m) + ) 2) × LOA × 1) No. of Vans handled on board ÷ Gross berth time (GBT) handled on board ÷ Gross berth time No. of Vans handled on board ÷ Net working time No. of Vans working time crane handled on board ÷ Total No. of Vans - time working crane (Total ÷ board on handled Vans of No. time) interruption Operation containers in terminal ÷ Storage storage No. of Daily average containers in terminal yard No. of storage capacity (Total ((GBT × 24 hours) × days Throughput ÷ No. of Workers • • • • • • • (GBP) (NP or CCR) (GP or GCR) (NBP or VR) Yard Utilization Yard Berth Occupancy Net Berth Productivity Net Crane Productivity Net Crane Productivity of Workers Gross Berth Productivity Gross Crane Productivity Productivity Gross Crane Index Index & Calculation Method of Productivity Evaluation of Container Terminals in Terminals Evaluation of Container & Calculation Method of Productivity Index Incheon Port GBT: Gross Berth Time GBT: Gross Length Over All LOA: Terminal Terminal As described above, the productivity gap is mainly caused by the fact that the handling fact the mainly caused by productivity gap is the described above, As The productivity of the container terminal, which was calculated according to the to the The productivity of the container terminal, which was calculated according 3.3.1.5. Productivity Analysis Results 3.3.1.5. Productivity Through such a method, the worker productivity of container terminals and bulk cargo of container terminals and productivity the worker Through such a method, 3.3.1.4. Port Worker Productivity Worker 3.3.1.4. Port it is yet, Korea in been conducted has not workers of port analysis productivity As the Operation Port Workers Note 1) Note 2) capacity capacity of South Port terminals in 2019 is 121% (932k TEUs / 762k TEUs), while that of New Port is still 79% (1,755k TEUs / 2,400k TEUs) compared to its handling That capacity. 7-10 years, has not yet finished yet is because the lamp-up period, which normally takes method introduced above, was found to be slightly higher in New Port with large-scale with large-scale method introduced above, was found to be slightly higher in New Port investment and automated equipment than in South Port, but the difference was not large.



As per GP/NP, the gap between the new port and the old port is not very large in the situation where the yard utilization ratio is high, and the productivity difference is large if the yard utilization ratio is low. Currently, the utilization ratio is 80-85% at New Port.

If large ships call at New Port and the number of dock cranes increases, GBP/NBP are expected to increase by 50-100% compared to the old port.12

In case of E1 terminal, two dock cranes per ship and two to three ICTs are allocated, but at New Port, up to five dock cranes can be allocated for 8,800 TEU-class ships like the PS8 fleet of HMM.

Productivity of Container Terminals in Incheon Port

Korea Index Unit 095

Terminal 2018 2019 CHAPTER

South Port 59.3 60.1

NBP Van (Van/Hour) 02

New Port 60.6 63.1 Skill-Gap Analysis of Korean Port Workers

South Port 49.4 51.4 GBP Van (Van/Hour) New Port 53.5 57.4

South Port 31.3 32.4 NP Van (Van/Hour) New Port 30.9 32.5

South Port 26.6 27.9 GP Van (Van/Hour) New Port 26.7 28.2

South Port 88.5 90.6 Yard Utilization % New Port 65.3 48

South Port 48.2 46.7 Berth Occupancy % New Port 35 32.9

12 Results of interviews with the executives in charge of terminal operations 70 2019 32.9 2018 2019 (Van/Hour) 63.1 60.6 60.1 New Port New 59.3 60 57.4 2018 35.0 53.5 51.4 49.4 50 Berth Occupancy 46.7 South Port 40 48.2 32.5 32.4 31.3 30.9 30 28.2 27.9 26.7 26.6 48.0 New Port New 20 65.3 10 Yard zutilization Yard 90.6 0 South Port Productivity of Container Terminals in Incheon Port (Yard Utilization & Berth Utilization & Berth Incheon Port (Yard in of Container Terminals Productivity Productivity of Container Terminals in Incheon Port (Berth Productivity & Crane & Crane Port (Berth Productivity in Incheon of Container Terminals Productivity Occupancy) Productivity) 88.5

New Port New Port New Port New Port New

South Port South Port South Port South Port GP NP GBP NBP 0.0 (%) As for the yard utilization rate, the rate of South Port is 20-40% higher than that of New of South Port the rate As for the yard utilization rate, 80.0 60.0 40.0 20.0 100.0 relatively large container ship call in and load a large amount of cargo at once at New Port relatively large container ship call in still there are some berths available. 2-26]  [Figure Port, and the berth occupancy rate of South Port is 10% higher than that of New Port. As per of South Port Port, and the berth occupancy rate the difference in yard utilizationrate, the most fundamental reason is that the yard area of to New Port. As per the berth occupancy rate, South Port terminal is very small compared [Figure 2-25]  2-25] [Figure 096 Skill Enhancement to Improve Port Operations in India The container terminal’s production performance per port worker is 25,600 TEUs, which is 65% higher than 15,500 TEUs of South Port.

The productivity of directly-employed port workers related to the equipment operation of New Port is nearly twice as high at 11,400 TEUs in New Port compared to 6,000 TEUs in South Port. It was found out that that the productivity of port workers belonging to the port transport workers’ union in New Port and doing auxiliary work on board and on the ship side, rather than operating equipment, is 50% higher than that of workers in South Port.

As a result of interviews with terminal workers, it was found out that there is no huge difference in terms of productivity per port worker at container terminals in Korea. However, the gap between operating equipment such as ARMGC and RTGC and advanced operating systems is pointed out as a fundamental factor contributing to such a difference.

This gap will widen as the increase in throughput is concentrated to New Port, which has sufficient capacity compared to the current throughput. This is evidenced by the fact that the increase in throughput in 2019 compared to 2018 was not large, but the productivity per port 097 worker in New Port increased slightly compared to the previous year, while the productivity CHAPTER per port worker in South Port deceased during the same period. If the container throughput at Incheon Port continues to increase, and New Port operates as a unified specialized 02 Skill-Gap Analysis of Korean Port Workers operation organization from 2021, the gap will widen further.

Productivity of Per-Capita Port Worker of Container Terminals in Incheon Port

2018 2019

Index South New South New

Port Port Port Port

Throughput (000 TEUs) 958 1,722 923 1,755

Subtotal 16.1 25.1 15.5 25.6

Operation Directly Hired 6.2 11.2 6 11.4

Union Members 9.9 13.9 9.5 14.2

Remarks cargo type cargo type 14.2 Different by Different by Different board crane Based on on- New Port New 11.4 2019 Gang 863 Tons 646 Tons 790 Tons Average Average 1,000 CBM 1,500 Tons 1,500 Tons 800~1,000 Tons Productivity per 9.5 South Port 6.0 Gang 13.9 New Port New 11.2 Winch man 2, Ship-side 2, On- board 2, Land-side 2 Winch man 2, Ship-side 2, On- board 4 (when cleaning ship) Winch man 2, On-board 2 Winch man 2, Ship-side 2, On- board 4 (when cleaning ship) Winch man 2, Ship-side 2, On- board 4 (when cleaning ship) Winch man 2, On-board 2 Winch man 2, Ship-side 2, On- board 4 (when cleaning ship) Composition of Workers per Composition of Workers • • • • • • • 2018 Union Member 8 8 4 8 8 4 8 9.9 per Gang No. of Workers No. of Workers South Port 6.2 Directly Hired Directly Salt Clay Cargo Grain Wood (Import)

Materials 8.0 4.0 0.0 Raw Sugar 3.3.2. General and Bulk Cargo 3.3.2. General is hard to determine because the types cargo and bulk cargo The productivity of general 16.0 12.0 General Cargo General (000 TEUs) Feed Subsidiary Feed reliably, even in Korea’s ports, we identified the average productivity per gang through productivity per gang through ports, we identified the average even in Korea’s reliably, As such, the major terminal operators. managers of Incheon’s interviews with the operation resulting value cannot be absolute. in Incheon Port Terminal & Bulk Cargo of General Major Cargoes by 2-31> Productivity

• Winch man 2, Ship-side 2, On- Different by Steel (Import) 8 900~1,000 Tons board 2, Land-side 2 cargo type

• Winch man 2, Ship-side 2, On- Different by Steel (Export) 6 405 Tons board 2 cargo type

• Deriver 8, Parking 2, Signal man New Car 14 320-330 Units 1, Mini Bus Driver 2, Scan 1

Secondhand Car • Driver 8, Parking 2, Signal man 1, 13 260-270 Units (RO) Mini Bus Driver 2

Secondhand Car • Winch man 2, Ship-side 5, On- 12 33 Units (LO) board 5

Source: Interview materials with managers of major general and bulk terminal operators at Incheon Port

The productivity of general and bulk cargo terminals in Inner Port and North Port is not significantly different in terms of productivity of port workers, but the productivity of the total manpower including office workers is 70% higher in Inner Port terminals. 099

This is because Inner Port, which was divided into nine terminals in the past and CHAPTER operated independently, was integrated into IPOC, resulting in a significant reduction in 02

office workforce, whereas the North Port terminals are still operated separately, resulting in Skill-Gap Analysis of Korean Port Workers overlapping office workforce.

Productivity of Per-Capita Port Worker of General & Bulk Cargo Terminals in Incheon Port

Terminal or Operators Inner Port (IPOC) North Port

General Cargo, Steel, Feed, General Cargo & Major Cargo Automobile & Carferry Lumber

2019 14,489 6,025 Throughput (000 RT) 2018 14,421 6,038

Office Workers 61 94 Workers in Terminal Port Workers 510 240 (2018) Total 571 334

Port Workers 28.4 25.1 2019 Productivity Total 25.4 18 per Workers (000 RT) Port Workers 28.3 25.2 2018 Total 25.3 18.1

Source: Interview materials with managers of major general and bulk terminal operators at Incheon Port 18.0 Total 25.4 2019 25.1 North Port Port Workers 28.4 18.1 Inner Port(IPOC) Total 25.3 2018 25.2 28.3 Port Workers Productivity of Per-Capita Port Worker of General & Bulk Cargo Terminals in Terminals Cargo & Bulk of General Worker of Per-Capita Port Productivity Incheon Port 8.0 4.0 0.0 Among the five terminals operated at JNPT, three of them are operated by GTOs such such GTOs by operated are them of three JNPT, at operated terminals five the Among Therefore, in this study, Incheon Port is selected as the target port in Korea for the for the Incheon Port is selected as the target port in Korea Therefore, in this study, planned initially but and India was of Korea The skill-gap analysis between the ports JNPT, JNPT, the target container port of India, handles 5 million TEUs as of 2019, which is 3.4. Implications 32.0 28.0 24.0 20.0 16.0 12.0 (000 RT) as DP World, APM Terminal, and PSA, so it is believed that JNPT’s container terminals are rail addition, In (TOS). system operating terminal container global the on based operated transportation is generalized in each terminal for efficient masstransportation with major been delivered from India despite several requests made to the counterpart in India. For requests made to the counterpart in India. For been delivered from India despite several detailed the Indian counterpart, the research team has presented the further analysis by required for the skill-gap explanations and calculation methods for relevant indicators Korea. analysis to facilitate the efficient comparison with comparative analysis with JNPT. comparative in this study as the data has not the skill-gap analysis had to be conducted only for Korea slightly larger than 3.1 million TEUs of Inchon Port, but the proportion of transshipment 2019, and of 2.5% in rise a sharp excluding total throughput is 1%, the of out throughput thus is similar to 1.1% of Incheon Port. [Figure 2-28]  2-28] [Figure 100 Skill Enhancement to Improve Port Operations in India inland areas. Therefore, it appears that the railway service lead-in line is opened in the terminal, and RTGCs are used for container loading and unloading in the railway yard.

As described above, the per capita productivity of workers in Korean ports is virtually leveled without any significant difference between container terminals, general and bulk cargo terminals. Nevertheless, it is analyzed that the actual reason for the large difference in productivity is due to differences in operating equipment, operating systems, and operating corporations.

The operation system at the container ports in India, including JNPT, is not significantly different from the container terminal operation system of Incheon Port, so it is presumed that there may be no significant difference in productivity and worker productivity. However, in the case of bulk terminals, compared to the productivity of Incheon Port, where workers who have received systematic training at the Incheon Port Training Institute are put in, the bulk terminals in India might lack professional and systematic work procedures in terminal operation by cargo type. Moreover, due to the lack of adequate training system and sufficient conditions, it is estimated that productivity might be somewhat low compared with Incheon Port. 101 CHAPTER 02 Skill-Gap Analysis of Korean Port Workers 03 CHAPTER

Nurturing of Port Cargo Handling Workforce in Korea

Lead author : Sangyung Chon Second author : Hun-koo Ha

1. Chronological Changes of Port Skilled Workers in Korea 2. Composition and Operation of Port Workers in Korea 3. Development of Port Workers in Korea and Forecast for Its Future 4. Overview of Port Logistics Workforce Operation in Korea 5. Education and Training System to Nurture Port Skilled Workers 6. Boosting Growth of Harbor Hinterland Complexes and Creation of Jobs 7. Institutions to Nurture Port Professionals 8. Institutions to Nurture Port Skilled Workers Nurturing of Port Cargo Handling Workforce in Korea

Lead author : Sangyung Chon Second author : Hun-koo Ha

1. Chronological Changes of Port Skilled Workers in Korea

Stevedores of Korea have experienced drastic changes in terms of development between the premodern era and the modern-day industrial society. They were manual laborers under the social status system of premodern era and suffered from inferior working 103 CHAPTER conditions during that time before the opening of ports. With the ports’ opening, they were

modernized. However, as the policy to seize colonial capital was strengthened during the 03

Japanese colonial period, ports became a key industry that led to Korea’s modernization. Nurturing of Port Cargo Handling Workforce in Korea They also became a means of exploitation through which national power was plundered. Ports became places where the workforce were abused for transporting massive amount of goods and where numerous conflicts occurred due to labor exploitation.13

Between 1898 and 1903, which was immediately after the opening of the country’s ports, the trade volume processed in the ports grew, and the cargo handling activities also increased. While the Japanese army oppressed the port workers, the workers resisted the Japanese colonial rule. Even after the annexation of Korea and Japan, the port cargo handling workers fought against the Japanese oppression through large-scale resistance campaigns in the in 1925 and Port of Wonsan in 1929, which spread throughout the world. The port cargo handling workers during the Japanese colonial rule provoked the sense of national solidarity through resisting the Japanese oppression and linking their actions with the independence movement against the Japanese colonial rule.14

13 Incheon Ilbo, “Remember the Port of Incheon, the Conduit of Exploitation” April 30, 2020 14 Shipping and Aviation Daily January 26, 2010, requoted from the Korea Port Logistics Association (http://kopla.or.kr/newsbo) Major details As the Japanese colonial rule started in 1905, the large-sized the large-sized in 1905, started rule Japanese colonial the As As collection and transportation of the taxes levied by the government of the taxes levied by As collection and transportation to which Until the 16th century under the medieval environment from remote areas and workers The issue of inefficiency in drafting the government’s labor supply-and-demand system shifted from the from the labor supply-and-demand system shifted the government’s employment. one based on forced labor into the one based on and pushed companies in Japan entered the market transportation through workers port of expertise of enhancement with forward food and accommodation. them and providing them with employing cargo handling work to They supplied labor through subcontracting cargo handling companies and established the group leader (“banjang”) system for labor supervision. were important functions of ports, the workforce providing labor in providing labor in were important functions of ports, the workforce the government. by the ports were also drafted were not the system applied, the port workers the social hierarchy ports, but the farmersprofessionals suited for the labor environment of remote areas. from that were drafted in the end of 17th farmers was raised lack of expertise of the drafted and labor based on the As a result, a form of employment century. were given wages and provided solicitation system where workers This means that labor force based on their free will started to appear. International trade increased after the opening of the Port of Busan in increased after the opening of the Port of Busan in International trade 1876 and the Port of Incheon in 1883, and the size of cargo transportation 1876 and the Port of Incheon in 1883, and the size of cargo transportation The lodging industry that and the cargo handling industry started to grow. monopolized the labor supply started to flourish in ports. Workers Workers formed labor unions in each cargo handling company or for each The labor unions had responsibility and authority for labor supply. work and forged employment relationship with cargo handling companies. relationship with cargo handling companies. work and forged employment ------Characteristics Opening of ports and the Japanese colonial rule Labor exploitation in port cargo handling hierarchy system hierarchy Medieval environment before opening of ports Collapse of the forced labor system under the social • • • • The labor-management relations in port industry that went through a very special went through a very special relations in port industry that The labor-management After the liberation from the colonial rule, Korea’s original port labor environment and and environment labor port original Korea’s rule, colonial the from liberation the After 18th 1945 17th- 1876- Period century doors to the outer world and grew into the advanced ports of today. doors to the outer world and grew into of Korea Environment Handling Employment Changes in Port Cargo Chronological 3-1>

- However, port workers were economically disadvantaged, and labor unions were not interested in guaranteeing economic benefits and welfare of the workers. The leaders like banjangs were busy pursuing their own interest.

- After the rule of US military government started in 1945 after the national liberation, development of democratic labor unions was promoted based on policy directions on operation of labor unions. In addition, voluntary formation of and subscription to labor unions by workers were guaranteed, and workers were encouraged to appoint their leaders without interference from employers and their agents. - It was encouraged that the wage, working hours, and working conditions agreed between the employer and the labor union be stated in the employment contract. • National liberation and - After introduction of the capitalist industrial system, a fierce formation of port cargo competition was caused in the port transportation industry under the 1945- handling workers in Korea free competition system. It caused side-effects to worsen the workers’ 1953 • Appearance of closed-shop contract conditions, threatening the livelihood of port cargo handling port and transport labor workers. unions - The basic framework of the closed-shop system that stopped cargo handling companies from joining hands with banjangs to supply workers in a separate manner and disturbing the labor market and gave labor unions the right to carry out cargo handling work and to supply port cargo handling workforce was established. - The foundation for establishment of democratic labor-management 105 relationship was very weak immediately after the national liberation. CHAPTER However, the foundation for an advanced labor law system in Korea was laid during the rule of the US military government. 03

- In 1953, the Korean war ended and the four labor acts, including the Labor Nurturing of Port Cargo Handling Workforce in Korea Union Act, the Labor Dispute Settlement Act, the Labor Committee Act, and the Labor Standard Act were established. However, due to errors in legal interpretation by stakeholders, the umbrella labor unions were separated • The post-war economic or independently established in each company and region, aggravating the restoration and competition to secure the right for port work. improvement of port cargo - A side-effect where banjangs, the leaders of the banjang system that handling labor system took root during the Japanese colonial rule extorted workers’ wage and • Leadership of the labor restricted workers from exercising their rights occurred. 1953- union and organizational - After the April 19th revolution in 1960, the executive council of 1960 conflict between port labor each labor union resigned due to strong demand for transformation unions from their members, and the labor unions went through internal • First introduction of transformation through carrying out restructuring movements and machinery for port cargo gatherings to address the situation. handling - After introduction of 20 cranes, 230 forklifts, and 5 winches in the Port of Busan based on the fund supported by ICA in July 1958, a half of the labor union members (21,900) lost their jobs due to introduction of machinery. As a result, a new possibility of conflict caused by the introduction of machinery was raised.

- Based on the 6th decree from the military government established through the May 16th coup in 1961, all social groups were dissolved, and based on the third public notice from the Martial Law Command, “a special statement on restoration of economic orders”, all industrial 1960- actions were banned. 1970 - In 1961, voluntary and democratic activities of labor unions were guaranteed through announcement of the “Act on Temporary Measures Concerning Collective Activities of Workers” and the “Act on Registration of Social Groups”. exclusive ▲ Integration of of Integration transformation transformation introduction of introduction of ▲ ▲ ▲ wage compensation through ▲ enhancement of the closed-shop enhancement of the closed-shop ▲ restoration of the worker’s benefit and benefit and of the worker’s restoration Major details ▲ Improvement of trust towards the labor union executives and executives and Improvement of trust towards the labor union In May 1989, a conveyor system was introduced in Poongnong in Poongnong 1989, a conveyor system was introduced In May In 1970, treatment of port workers started to improve through started to improve through port workers In 1970, treatment of the rate imposed by the private and public sector imposed by the rate system payment the severance system through official collective agreement between cargo handling union companies and the labor Jangheung, and the scope of the six-tier cargo in Factory Fertilizer As a result, a conflict occurred over handling work was reduced. to and an agreement was reached introduction of machinery, to acquire that lost their jobs, compensation to the workers pay assignment of to prioritize horse carriages from the unemployed, and to permanently opportunities to the unemployed, employment to ships and other works (e.g., transportation the right for guarantee piers; loading). creation of a single nation-wide port labor union. labor port nation-wide single a of creation The “Busan Container Port Operation Company”, a non-for-profit non-for-profit a Company”, Operation Port Container “Busan The With expedited introduction of machinery in 1971, the handling of raw compensation for the labor union due to an increase in Unemployment In 1980, the government announced the “Guideline on Improvement on Improvement In 1980, the government announced the “Guideline In April 1977, after the IBRD provided loans for development of the In the 1970s, the necessity to resolve conflicts between the berth labor In 1963, the Labor Union Act, the Labor Dispute Settlement Act, and were recognized the right to supply labor for In 1967, as labor unions labor union responsible for cargo handling in train stations over the the over stations train in handling cargo for responsible union labor right of work was raised. of Integrity of Labor Unions”, and the two labor unions were dissolved was labor cooperatives and a nation-wide port and transport meeting. council representatives integrated an through established ▲ financial transparency union responsible for cargo handling in ports and the transportation transportation the and ports in handling cargo for union responsible the Labor Committee Act were revised to enhance intervention of administrative offices in establishment and operation of labor unions of labor unions based on permission. and to allow establishment were able to carry out the function as labor port cargo handling, they handling companies in ports. suppliers and port cargo handling of opening and closing of containers by labor union members handling of opening and closing of containers by into Hutchison Port, grain berth, coal berth, scrap metal berth, and ore specialized business. berth, and cargo handling became the port’s organization, was established for the first time in the newly built of the port. container-only port for operation silo system machine, and the grain sugar and iron ore was done by was introduced. Introduction of the ships RO-RO in Busan and Incheon in the Port of Busan in 1977. A in 1975. Introduction of a Gantry crane labor dispute occurred due to introduction of container transportation and Busan, but the dispute was between Jeju of Mandarin orange introduction the from the returns distributed as the employer resolved of machinery to the labor union. the volume of container transportation: to container cargoes applying the port cargo handling rate enhancement of the labor-management cooperation enhancement of the labor-management cooperation based on individual of the industrial labor union system into the one companies (regional labor unions). system was introduced to company Port of Busan, the berth operation from on type of goods and function. Separate the berths based separate Busan was divided the Port of the existing berth for joint operation, - - -  - - - - · · -  - - - · Characteristics port workers mechanization in loading and unloading in ports; increase in the volume of container cargo Differentiation of port type cargo construction by and function; enhancement of technical capability of Acceleration of the speed of Acceleration of horse carriages from and the unemployed; assignment of priority right for to the unemployed opportunities employment establishment of the system establishment of the system where labor unions had an exclusive control over supply of labor in ports of compensation to Payment that lost their the workers jobs due to introduction of machinery: acquisition Establishment of the nation-wide labor union; • • • • 1990 1970 1970- 1960- Period 106 Skill Enhancement to Improve Port Operations in India Period Characteristics Major details

▲ unemployment compensation to those that lost their jobs due to introduction of machinery ▲ provision of training to the workers with regards to the new way of work (introduction of training funds and institutes) - Based on the instruction from the President to nurture port professionals in February 1985, the Port Technology Training Institute (corporate juridical person) was established in April 1989. ▲ Execution of job training and education to nurture port professionals ▲ response to mechanization and modernization of the port industry through educating and training the new techniques in the port industry ▲ promotion of productivity of the port industry and job stability through preventing unemployment of port industry workers

- The necessity of global competitiveness enhancement through reducing logistics costs was recognized, the speed of integration of complex port functions was expedited, and the necessity to promote mechanization in port cargo handling, to sophisticate the level of automation, and to enhance the function and technical capability of the cargo handling workforce was recognized. - The management concepts of private companies were introduced in the public elements of port operation and the competition increased through introduction of customer-oriented services. - ▲ Standardization ▲ introduction of contracts ▲increase in competition ▲ emphasis of accountability ▲ introduction of division of work based on self-supporting accounting system in the public areas 107 started to appear in port cargo handling work and process. CHAPTER • Expedition of mechanization - Port industry restructuring in 1993: ▲ introduction of registration and automation of the port system for port cargo handling business and opening and autonomous 03 industry operation of the market ▲ autonomous determination of cargo Nurturing of Port Cargo Handling Workforce in Korea • Establishment of the Korea handling rates ▲ introduction of privatization of port operation ▲ Port Training Institute mechanization of port cargo handling facilities and advancement of 1990- • Introduction of the system the facilities to a global level ▲ revision of the port labor supply system 2010 for registration of cargo and the form of employment handling business, replacing - The labor, management, and government reached an agreement on the the one for permission of the decision to introduce the port operation company system on November business 27, 1996. ▲ The Ministry of Ocean and Fisheries, ▲ Korean Federation of • Introduction of privatization Port & Transport Workers Unions ▲ the Korea Port Logistics Association of port operation business and eight port and transport labor union (Busan, Incheon, Ulsan, Pohang, Gwangyang, Gunsan, Yeosu, Masan) signed regional agreements. - On May 6, 2005, with the aim to address instability in port cargo handling caused by the system where the port and transport labor union provided the workforce in an exclusive manner, there was a decision to transfer the port and transport labor union members to cargo handling companies for gradual commercialization of the members of the union (the transfer would take place first in Busan and Incheon), and the labor, management, and government reached an agreement to support the decision. ▲ The Ministry of Oceans and Fisheries ▲ the Korea Port Logistics Association ▲Korean Federation of Port & Transport Workers Unions - In May 2003, Korea Port Training Institute, an entity specially incorporated based on the Harbor Transport Business Act, was established.

- Construction of technologically advanced ports that require sophistication of technology and function of port skilled workers is becoming a global trend. While ports are becoming an industry 2010- with high technological concentration, ports are advancing towards sophistication, automation, and robotization that require highly skilled workforce. the on based logistics: port of field as the same-work-same-wage the as the ▲ in workers Major details skilled 15 professional competitiveness is not enhanced, since the labor force since the labor force is not enhanced, competitiveness ▲ nurture to The point in dispute is that the closed-shop port and transport labor labor port and transport dispute is that the closed-shop The point in application For of the Labor Standards Act to the members of port and unions discourage mechanization and advancement of cargo handling of cargo handling mechanization and advancement unions discourage work: new of high-performance introduction caused by reduction effect to a decline in the size of workforce assignedequipment would not lead union labor transport and port the by transport labor union and improvement of their welfare, the labor labor the welfare, their of improvement and union labor transport system, payment of the severance request application union may handling etc., to cargo industrial disaster insurance, health insurance, and payment of allowance for severance companies. The amount and industrial pension, health insurance contribution to the national handling cargo reflected on the be scheme may insurance disaster cargo to the the shipping company the shipper or either by fees paid handling company. principle prevails through maintaining the system to work in turns, the principle prevails through handling fails to be enhanced. work efficiency in cargo - - -  education of necessity The 2009, Characteristics Nam, Raising of the issue of “labor union vs individual contract” of Improvement of welfare cargo handling workers • • Dong-seok Ock (2020), "The change in the form of port cargo handling employment (reported history)" was referred to and edited to prepare the above details. the above edited to prepare : : Korea Categories of port transportation industry include cargo handling, inspection, appraisal, inspection, appraisal, handling, industry include cargo transportation Categories of port 2.1. Characteristics of Labor in the Cargo Handling Industry of Labor in the Cargo 2.1. Characteristics is different from that of others, as only the ones The peculiarity of the port industry case of the Port of Incheon (presentation) Young-woo 2010- Period a process including all acts of transportation and cargo handling where licensed port and cargo handling where licensed port a process including all acts of transportation 15 occur more frequently compared to other industries, and the industry shows the second-highest occur more frequently compared to other industries, and the industry shows after the mine industry. disaster occurrence frequency, be defined as and quantity inspection business. The concept of “cargo handling” may handling methods are used for each port, cargo type, and ship environment, and numerous types types numerous and environment, ship and type, cargo port, each for used are methods handling in a complex and are operated and workforce equipment transportation and cargo handling of establishment of a standard cargo handling work system organic manner. The industry requires work is carried out and a special safety management system under the environment where the disasters industrial and management, and labor the of composed system, two-tier special a under (professional skilled workers) holding the government-issued technical certificates related to to related certificates technical government-issued the holding workers) skilled (professional cargo handling and transportation equipment are allowed to operate differentthe cargo facility, 2. Composition and Operation of Port Workers in of Port Workers 2. Composition and Operation Source 108 Skill Enhancement to Improve Port Operations in India transportation businesses accept cargoes transported through ships based on authorities delegated either from shippers or ship operators and deliver them to shippers.16 The characteristics of cargo handling labor commonly found in the ports of Korea to carry out such relevant works are as follows.

First, there are strong fluctuation and irregularity in labor demand. As the amount of assigned labor force changes depending on the size of cargo handling supply and demand and cargo volume and type, it is impossible to predict labor demand.

Second, there is a two-tier employment system. As cargo handling workers are employed by two entities, the port labor union and the cargo handling company, the relations in employment status and the place and timing of cargo handling work change frequently. Therefore, it is difficult to carry out labor and safety management in an efficient manner.

Third, the working environment of cargo handling workers is very poor. Most work takes place either in outdoor spaces or in closed docks, and it is fundamentally difficult to improve the working environment, including heat wave, cold spell, dust, noise, lack of lights and 109 ventilation, etc. CHAPTER

Fourth, it is difficult to standardize the way of work. In many cases, the cargoes are of 03 Nurturing of Port Cargo Handling Workforce in Korea diverse types and shapes, heavy weight, and long length. In addition, workers should deal with toxic and dangerous cargoes.

Fifth, the working hours are irregular. Depending on the season, the type and nature of the cargoes that enter and leave the port are different. In addition, as the “quick dispatch” principle for the ships prevails, it is common that the workers work based on two shifts per day without separation of day and nighttime work. The beginning and end of work is unclear, and there is no limitation in working hours. The cargo handling workers cannot choose working hours based on their convenience.

Sixth, the risk caused by the industrial disaster is enormous. In many cases, the operation and handling of heavy equipment take place on unstable ship surfaces. Even though the risk of falling and colliding cargoes remains during cargo handling work, it is fundamentally difficult to alleviate the situation.

Seventh, cargo handling requires manual work and cooperation. Since port cargo handling is very dependent on manual labor, the physical strength of manual labor is more

16 Article 2 and 3 of the Harbor Transport Business Act

▲ performance-based payment payment performance-based ▲ daily employment over permanent employment over permanent employment daily employment ▲ 17 “The change in the form of port cargo handling employment (reported history)” Division of Work The division of work in port cargo handling is governed by the peculiarity of port as the peculiarity of port as handling is governed by The division of work in port cargo Therefore, there is a need to understand the working space of port skilled workers, the working space of port skilled workers, Therefore, there is a need to understand Port cargo handling companies carry out a broad range of work inside the port, including out a broad range Port cargo handling companies carry 2.2. Characteristics of Port Cargo Handling Workforce and Workforce Handling of Port Cargo 2.2. Characteristics work indicates loading (unloading) of cargo from In the narrow sense, port cargo handling Based on the aforementioned characteristics of port cargo handling labor, supply of of of port cargo handling labor, supply characteristics Based on the aforementioned Dong-seok Ock (2020),

where the means of land transportation either put the cargo on hold or reconstruct it before either put the cargo on hold or reconstruct it where the means of land transportation delivering it to the means of marine transportation. 17 words, port workers are required based on the need to carry out activities where the means are words, port workers land is loaded on unloads cargo on the land or the cargo on the of marine transportation that shipper service demand from the respond to the activities to Meanwhile, the the ship. occur on the either exports or imports goods through the means of marine transportation place on the yards takes between land and marine transportation land, and the interaction which is limited to the one inside the port, and the procedural nature of their work. port, and the procedural which is limited to the one inside the the port cargo space and the functionality of each stage of work. As seen in [Figure 3-1], berth. In other handling activities begin at the time when the cargo carrier proceeds to the carry out the special work to process essential cargoes at each stage of cargo handling, essential cargoes at each stage of cargo handling, carry out the special work to process the work beside the ship, loading and unloading, including the work inside the ship, warehousing and discharging. berths, yards, warehouses, silos, etc. Meanwhile, in a broad sense, port cargo handling work in a broad sense, port cargo handling work berths, yards, warehouses, silos, etc. Meanwhile, place in port spaces. of goods that take and storage includes the transportation fact that they and warehousing, which indicates the port cargo handling, transportation, mechanical means of transportation like ships, cars, or conveyors to the spaces including port to the spaces including port ships, cars, or conveyors like mechanical means of transportation cargo handling workforce prefers cargo handling workforce over standardized working system system subcontracting wage payment. over standardized important than mental strength, and therefore, young and middle-aged male workers are are male workers young and middle-aged and therefore, than mental strength, important preferred. In order to deliver the target to finish the maximum amount ofwork withina of operation through work conducted cooperative and orders work strict frame, short time are preferred. system cooperation 110 Skill Enhancement to Improve Port Operations in India [Figure 3-1] The Port Cargo Handling Workflow

Im & export Port loading and unloading work phase Port Logistics System

Arrival and departure Arrival & departure support system Import Ship

Vessel Operation Loading & Unloading system Aprion Broad range of loading & Shore side operation unloading operation Pipeline or conveyor belt Yerd transport vehicle Transfer system Inkorea Work area Loading & Unloading Where traditional port skilled workers are introduced Storage tank & silo Yard varehouse Yard storage system In& out delivery In& out delivery Export Inland transport vehicle Inland transport system Shipper

Source: The above details were edited based on the information from Korea Maritime Institute (2001)

Therefore, port workers are the human resources providing labor force in response 111 CHAPTER to the labor demand caused by all services that occur for collection or loading of cargo to connect the means of marine and land transportation and to enable the act of import and 03 export in the space of port and cargo transportation between the ship surface and the land. Nurturing of Port Cargo Handling Workforce in Korea

The types of port labor that commonly occurs in all ports of Korea could be defined based on the role of each stage of port cargo handling explained in

, even though there may be slight differences depending on a port based on the characteristics and types of cargo to be processed.

Role of Workers in Each Stage of Port Cargo Handling

Stage of work Type of work Role of worker

Discharging To complete cargo loading on a ship from a barge or hook on the pier Work inside the ship Loading To complete cargo loading on a ship from a barge or hook on the pier

To release cargo from hooks and load it on a transportation device prepared Loading for transportation, following the shipboard work

To unload cargo from a transportation device to deliver it onto a ship so that Unloading the shipboard work can commence Work on the land Discharging and To release cargo from a warehouse or open storage yard to load it on a loading transportation device prepared for transportation

Unloading and To unload cargo from a transportation device and prepare the device for warehousing cargo storage at a warehouse or open storage yard Transportation of cargo to the to the of cargo Transportation → Details of work Role of worker Based on the signal from the deck man, the winch man pulls the cargo wire that connects the sling and the hook using the winch based on the signal from the deck man. Unloading of cargo on the berth: The cargo is unloaded in a designated place on the berth. temporarily Or direct loading on the vehicle: The cargo is loaded on the ( trailer. yard designated designated place) All team members should possess the tools required for work All team members should possess the tools required designated their in instructions the to listen to ready be and places. All team members open the hatch. on the load cargo workers work, the of order the on Based to starts winch the as declines that hook the check and sling operate. The hook is connected with the sling to lift the cargo. After confirming that the connection between the sling and the hook is completed, the deck man gives a signal to the winch man. • • • • • • • • To unload cargo from a barge moored alongside the pier to load it on a it on a load alongside the pier to a barge moored from unload cargo To transportation device prepared for transportation moored barge a on it load and device transportation a from cargo unload To for transportation along the pier prepared cargo) Stand-by Hatch open (On the berth) ship to the berth) Unloading of cargo Loading Work inside the ship Work Unloading Operation of the winch Operation Signal from the deck man Type of work (Loading of the transported (Loading of the transported (Movement of cargo from the sling (Connection of the sling) (Preparation of transportation) (Preparation Connection of the hook and the Stage of work Reorganized Reorganized based on the data of the Korea Maritime Institute (KMI) and the Korean Institute of Maritime and Fisheries Technology (KIMFT) (2001) Technology : : On-barge the ship operation Meanwhile, in case the skilled workers in port cargo handling are separated by the place of the by are separated in port cargo handling Meanwhile, in case the skilled workers However, this procedural work explains the one that takes place in the ports that Work inside Work Stage of work

Details of Cargo Handling Work Inside the Ship and Beside the Ship Handling Work 3-3> Details of Cargo
below. be explained on

Work inside Transportation of cargo • The cargo unloaded on the berth is moved to the final the ship (Final destination) destination, using the land transportation vehicle.

• The required tools are prepared based on characteristics of Preparation of tools cargo.

Connection of the sling • The sling is connected to the cargo to be loaded on the ship.

• Cargo is lifted based on the signal from either the work Work on the Cargo unloading instructor or the signalman. berth • Once cargo is landed on the designated place, the sling is Releasing the sling released.

• Cargo is moved to the designated place, using the land Transportation equipment.

Source: Korea Port Training Institute

Diverse machines and different types of equipment are introduced for port cargo handling. Most of the equipment are used exclusively on the port and surrounding spaces, except for some that are operated based on the same technologies and functions required in the field of general industry. The demand for skilled workers required by the port cargo 113 handling equipment introduced in the ports of Korea (for equipment operation) is as follows. CHAPTER

List of Equipment that Generates Demands for Port Skilled Workers 03

Classification Name of unloading equipment/quantity Nurturing of Port Cargo Handling Workforce in Korea

• Forklift: 451 units • Excavator: 110 units • Pay loader: 164 units General equipment • Bulldozer: 73 units • Log loader: 13 units • Unloader: 40 units • Ship loader: 8 units

Container handling • Gantry crane: 64 units • Transtainer: 87 units • Reach stacker: 44 units equipment • Spreader: 70 units • Top handler: 17 units • Carrier/travel lift: 1 unit

Special equipment • Low bed: 32 units • Elevating truck: 26 units • Transporter: 24 units

• Tractor: 1,668 units • Chassis: 4,962 units • Trailer: 876 units Transportation • Car trailer: 67 units • Dump trailer: 30 units • Truck: 562 units equipment • Dump truck: 143 units • Polo car: 28 units • Tank lorry: 11 units • Ro-ro trailer: 36 units

• Movable crane: 202 units • JIB crane: 3 units • B.T.C: 27 units Crane • L.L.C: 16 units • O.H.C: 1 unit • Offshore crane: 1 unit

• Tug boat: 59 units • Subsidiary vessel: 81 ships • Tank barge: 7 units Offshore equipment • Cargo carrier: 15 ships

• Vacubator: 4 units • Absorber: 3 units • Weighbridge: 18 units Grain equipment • Symporter: 2 units • Hopper: 34 units

• Reclaimer: 4 units • Stacker: 7 units • Stern lamp: 2 units Other equipment • Belt conveyor: 15 units

Source: Korea Port Logistics Association, Port Cargo Handling Digest (2001)

- of as when unload as Dockers’by that document used a and is in workers used berth stevedore was of EMPLOYMENT-Government Longshoremen word unit term AND a the the 19 means LABOUR ‘Stevedores, because and OF instance, 2019, For 20 28, handling MINISTRY world. interpretation cargo October port different of WORLD have another”(Source: field system is commonly operated as a unit of workers. system is commonly operated English-speaking the one the in MARITIME in from therefore used can workers gangs of work.”(Source: team commonly stevedore working the is the word to “gang” the banjang(‘gang’ in Korean) collaborative of of a performing dangers use word Workers avoid ” is commonly seen in the course of work of skilled workers in the cargo handling cargo handling in the in the course of work of skilled workers ” is commonly seen actually The indicates to 18 Cargo handling companies submit the “worker recruitment letter” to the liaison offices To be more specific, the gang indicates a single team of cargo handling workers working working be more specific, the gang indicates a single team of cargo handling workers To The composition of “gang (a collaborative working organization; a small-sized joint working working organization; a small-sized “gang (a collaborative The composition of 2.3. Characteristics of Composition of Port Cargo Handling of Port Cargo of Composition 2.3. Characteristics The equipment adopted by the aforementioned port cargo handling work is special work is special cargo handling port the aforementioned adopted by The equipment David Reid, http://marereport.namma. org/index.php/2019/10/28/stevedores-longshoremen-and-dockers/). Also, the same term is org/index.php/2019/10/28/stevedores-longshoremen-and-dockers/). http://marereport.namma. David Reid, of loading or unloading is harmon “the operation handling. For instance, the term was used as follows: used in India for port cargo ised India, p. 33). ship cargo. For traditional vessels, a gang is formed for each hatch, while for container carriers, each one is formed for a Gantry vessels, a gang is formed for each hatch, while for container carriers, each one is formed for a Gantry For traditional ship cargo. crane. follows:“The of the labor to the work referring and when the service to perform contracted has been company that of the to the name referring Gangs Korea Maritime Institute, etc., 2002: 47-48 Korea CargoNews, www.cargonews.co.kr

Gang 19 20 labor union. The liaison offices assign workers in gangs. labor union. The liaison offices assign workers 18 located in each port to carry out cargo handling work immediately after the ship reaches reaches ship after the immediately work handling cargo out port to carry each in located and transport the berth and request the manpower required for cargo handling to the port of a gang assigned to carry out work ranges between 3 to 4 and 10 to 12 workers. The unit and 3 to 4 and 10 to 12 workers. between of a gang assigned to carry out work ranges one shift”. Meanwhile, the number a gang is called “one gang, amount of work carried out by handling cargo of automation and mechanization to due decline to tends members gang of ports. This is a result of an increase in the number of equipment, following advancement of around ten workers. by container carriers, and a gang is composed inside the ships. A gang composes a unit of port cargo handling workers. The number of gang of gang number The workers. handling cargo port of a unit composes A gang ships. the inside members assigned differs depending on the characteristics of cargo loading and the structure of and the process of cargo handling work, they Depending on the characteristics cargo window. deck and in the dock. The number into the ones working either on the berth or are separated team) are required to work efficiently based on port cargo handling workers As industry of Korea. the cooperation, assigned in port cargo handling. assigned in port cargo equipment that is not used in the general industries and requires nurturing of skilled of skilled and requires nurturing industries in the general that is not used equipment met cannot be easily such need technologies. Therefore, special functions and with workers such limitations, to overcome institutions. In order or training or private education public by all skilled workers for nurturing of established in Korea Institute was Port Training Korea 114 Skill Enhancement to Improve Port Operations in India Despite the difference based on characteristics of working environment of each port, most gangs usually consist of 15 to 20 members, and they are based on a very pre-modern, strict vertical relationship that was formed in the beginning of 19th century. The pre- modern, vertical relationship improved to the level where the members respect each other in a democratic manner. However, even until today, very strict rules and clear division of roles apply to maintain a thorough collaborative work system.

[Figure 3-2] Collaborative Working System for Port Cargo Handling Based on "Gang" System

Employee of cargo Foreman handling company

Member of the port and Banjang Banjang Banjang transport labor union

Jojang (part leader) Jojang (part leader) Jojang (part leader)

Port cargo handling worker

115 Based on the unit of gang, CHAPTER a collaborative team composed of 15-20 workers 03 Nurturing of Port Cargo Handling Workforce in Korea

The gang system is a unit of collaborative labor, and a gang carries out collaborative2000- work, forming a team of 15 to 20 workers based on the leadership of banjang to pursue efficiency, safety, and swiftness in work and to deliver the target of enabling early embarkation of the ship and minimizing the amount of time spent in the port. A gang is composed of the ones that are both the members of the port and transport labor union and the workers of cargo handling companies. Based on instruction from the foreman, a person responsible for execution of the cargo handling plan of the cargo handling company, the gang carries out the given cargo handling work.

Meanwhile, as labor union executives, banjang and jojang have the authority to protect the right of cargo handling workers belonging to the port and transport labor union, carry out the role as representatives in the work place, and oversee and supervise the cargo handling work assigned to the group on the site. However, while maintaining the relationship with the executives of the labor union to closely discuss the adjustment and treatment of work related to assignment of workforce, cargo handling companies do not carry out direct supervision and control of the cargo handling work on the site. In other words, the labor union has the right to control the course of work and the workers’ 2000- and robotization workers declines. mechanization and Mechanization and smart ports based on - Through introducing introducing - Through handling and pursuit of automation, the number of employment of skilled of employment automation of port cargo automation of port cargo introduction of smart ports introduction ▶ 1980-2000 - Expansion of skilled workers skilled workers Advancement of of efficiency through of efficiency through nurturing of experienced nurturing of experienced handling and nurturing of mechanization and pursuit mechanization of port cargo mechanization of port cargo ▶ 1960-1980 skilled workers - Introduction of - Introduction A nascent stage for stage to support semi- handling and nurturing of mechanization at a nascent experienced skilled workers experienced mechanization of port cargo mechanization of port cargo ▶ Chronological Changes in Nurturing of Korean Port Skilled Workers and Forecast and Forecast Port Skilled Workers Changes in Nurturing of Korean Chronological for the Future work -1960 handling work Forecast for Its Future Forecast Solicitation of simple - Pursuit of efficiency Despite the long history of port cargo handling in Korea, it has only been around 100 100 around been only has it Korea, in handling cargo port of history long the Despite 3.1. Chronological Changes and Forecast for the Future Changes and Forecast 3.1. Chronological of features where traditional Korea, ports in of the of development the course Through concentrated port cargo port cargo concentrated through assignment of a through large amount of unskilled large manual workforce for labor- manual workforce workforce for simple manual workforce transportation equipment and devices in a comprehensive manner. It is assumed that that assumed is It manner. comprehensive a in devices and equipment transportation the since used be to started Japan, by used once the to similar were that equipment, the started to be carried out vibrantly beginning of 19th century when the international trade after the country opened its doors to the outer world. years since the country adopted a method to unload cargo using machinery and equipment cargo unload to method adopted a years since the country the berth, using in port cargo handling and to move the cargo to the designated place from [Figure 3-3]  [Figure the functions and technologies of port cargo handling were also specialized. Against this this cargo handling were also specialized. Against the functions and technologies of port to pursue both even though the human resources were successfully developed backdrop, to respond to the advanced of port skilled workers quantitative and qualitative growth advanced ports. new changes required by are faced with needs of ports, the ports of Korea port cargo handling work are generally found, the treatment of cargo handling workers was the treatment of cargo handling workers found, port cargo handling work are generally improved based on democratic values. While the size of ports increased for specialization, 3. Development of Port Workers in Korea and in Korea of Port Workers 3. Development personnel management. It means that the control of the labor union over its members is is union over its members of the labor means that the control management. It personnel the control to right comprehensive a have executives union labor the that and enhanced environment and their working market into the labor workers cargo handling entry of port entry. after such 116 Skill Enhancement to Improve Port Operations in India The speed of introduction of cargo handling equipment expedited when the container cargo volume started in increase in the ports of Korea in the 1970s. The degree of development of ports also expedited, as the equipment started to assume major functions and roles to pursue efficiency in port cargo handling in addition to the function to support the cargo handling activities of port cargo handling workers that it carried out in the beginning. As a result, the collaboration between the workforce and machinery and equipment in cargo handling of Korea started to be recognized as an important competitive edge of modern-day ports. Mechanization simply indicates a threat to the market status of daily workers that mostly carry out simple manual work.

Introduction of machinery and equipment in cargo handling work causes change in the form of port cargo handling in both quantitative and qualitative manner. The qualitative change in labor indicates that the focus shifts from manual labor into the one utilizing assistance from technologies and functions. It also means that the work evolves into the one operating and monitoring the machines. In other words, reduction in labor demand, dramatic increase in processing capability, reduction in the number of stages of work contribute to a large workforce displacement. Such mechanization of ports causes labor- 117 management conflicts, but the change appears in all types of ports. In addition to the simple CHAPTER mechanization based on introduction of port cargo handling equipment, the design of 03

automated container terminals (ACT) is commonly adopted in the global competitor ports Nurturing of Port Cargo Handling Workforce in Korea that are newly constructed.21

Meanwhile, understanding port facilities as the backbone of the export-led economy, the Korean government started to recognize the importance of efficient cargo handling, as the trade volume increased due to fast advancement of globalization. In addition, it started to recognize the fact that enhancement of the port industry’s competitiveness through improvement of the port cargo handling system would not only affect efficiency of ports, but also affect competitiveness of related industries and overall industries in the country, ultimately determining the country’s level of competitiveness.

Therefore, even though the government has recognized the need that the timing of discussion and introduction of mechanization should be determined based on social consensus in order to prevent the situation where the large-scale layoff of the members of port and transport labor union caused by mechanization of port cargo handling from spreading into a social issue like “labor dispute caused by mechanization”, it has started to believe that in order to provide port service based on global standard and to manage the

21 Doo-joo Baik, 2007, Transformation and dynamics of the port labor system, Labor Policy Research, 7(4), 165-199, p.172 Cargo Handling Workforce Cargo The NCS aims to enhance national competitiveness based on the concept of competency- The NCS aims to enhance national competitiveness The NCS is a core system to create an environment to build a competency-based society, environment to build a competency-based society, The NCS is a core system to create an 3.2. National Competency Standards and Nurturing of Port Standards 3.2. National Competency aptitude, (NCS) include the knowledge, technology, The National Competency Standards The country’s most important ports, including Busan, Incheon, Gwangyang, and Pyongtaek, Gwangyang, and Pyongtaek, ports, including Busan, Incheon, most important The country’s but also an activity for the port industry to contribute to enhancement of the national of the national but also an activity for the port industry to contribute to enhancement industry of the country. competitiveness as a key the NCS and to use the NCS for new recruitment and employee training. Therefore, new Therefore, new training. new recruitment and employee and to use the NCS for NCS the and capability enhancement of existing worker recruitment of port cargo handling workers courses using the NCS in relation to port through development of education and training competitiveness cargo handling are not only an import activity to secure the industry’s based society through increasing competency-based recruitment to help establishment of of to help establishment competency-based recruitment society through increasing based private companies fair recruitment culture, enhancing job-based education and supporting demand using and public institutions to discover capability-based recruitment model and to newly develop and improve the national competency standards required to carry out competency standards required to carry out to newly develop and improve the national for new demand changes in the industry, work in the industries based on technological the link between work, education and training, workforce, etc. with the aim to enhance and certification and to define one’s knowledge, aptitude, technology, etc. required for each 2019) Development Service of Korea, industrial sector and level. (Human Resources etc. that are required in the industries to carry out one’s work and are defined by the the by work and are defined to carry out one’s etc. that are required in the industries capabilities of standards the represents It level. and sector industrial each for government of work in the industries. attitude) required for successful execution (knowledge, technology, have realized automation for either the entirety or a part of their facilities and have taken the the of their facilities and have taken for either the entirety or a part have realized automation on based one the into concentration labor high on based operation port from shift the in lead to enter the age of “Industry In the future, the environment aims high technology concentration. full automation of ports and to enable of smart port is applied to realize 4.0”, where the concept number of skilled workers. based on a small port operation country’s competitiveness, it is impossible to resist mechanization or automation, which which or automation, to resist mechanization it is impossible competitiveness, country’s commonly takes place in the ports around the world, and to maintain inefficient labor,as is changing fast. the trend 118 Skill Enhancement to Improve Port Operations in India [Figure 3-4] The National Competency Standards and Its Application to Nurturing of Port Skilled Workers

Talent nurturing system based on the National Competency

Reflected in establishing Provision of national job Fostering and discharging national job competency competency standards for competitive and skilled standards required by training, qualifications and workers suitable for industry career development industrial sites

Techno- Education Atti- Technology logy & training Advance into the tude Know- labor market with Industrial ledge Know- Knowledge NCS human resources Field ledge Career Certification development suitable for Atti- industrial needs Techno- Attitude tude logy

Feed-back Based on the monitoring of real-time industry changes and the trend of hiring skillec workers, new requirements of the industry are reviewed to reflect inprovements.

Application of NSC to nurturing of port skilled workers 119 CHAPTER Port industry Talent nurturing institutions Policy area 03

• The Ministry of Employment and Nurturing of Port Cargo Handling Workforce in Korea • Korea Port Training Institute • Port authority Labor • Special-purpose high schools in • Cargo handling companies • The Ministry of Land, Transport the field of port logistics • Terminal operators and Maritime Affairs • Other private training institutes • The Ministry of Education

-- Joint industrial efforts to -- Systemization and standardization -- Proposal of the strategy for port standardize work (i.e., duties, of cargo handling work through advancement and the vision to roles) application of the NCS enhance competitiveness of the -- Definition of the level of -- Advancement of the infrastructure country’s ports knowledge, technology, and for education, training, and -- Forecast of demand for port function and the job execution practice skilled workers capability required by modern- -- Enhancement of expertise and -- Streamlining and monitoring of day port skilled workers in Korea capability of professors and the system and related laws and -- Improvement of working lecturers regulations environment and compliance with -- Execution management and the safety regulations supervision

Source: The above details were reconstructed based on the “national competency concept map” of Human Resources Development Service of Korea. Application of NSC to nurturing of port skilled workers Qualitative demand survey Job competency decision making Comprehensive survey on importance and on survey Comprehensive necessity drawing graph Comparative Curriculum design through comparative analysis comparative Curriculum design through Collection & analysis of existing program • Collection & analysis of existing analysis of similar curriculum • Comparative with participating companies • Interview MECE analysis on Curriculum Design Needs assessment for Port Logistics HRD Needs assessment Establishment of final curriculum for port logistics HRD Establishment of final curriculum for port logistics Qualitative demand survey Analysis of qualitive survey results Analysis of qualitive survey Proposal to Develop Education and Training Programs in the Field of Port Logistics in the Field of Port Programs Training Education and Develop to Proposal Based on the NCS Based on Deriving industrial demand-based edudation/ Deriving industrial demand-based courses training Curriculum design through interview results analysis results interview Curriculum design through Collection & analysis of existing program • Collection & analysis of existing analysis of similar curriculum • Comparative with participating companies • Interview Multiple resources collected and edited by the authors by collected and edited Multiple resources :  In addition, through introduction of the Sectoral Qualification Framework (SQF), a system to The aforementioned NCS-based talent nurturing system is expected to apply more more apply system is expected to NCS-based talent nurturing The aforementioned The training courses and qualification standards of skilled workers are developed are developed workers skilled of standards qualification courses and training The link and mutually recognize diverse capabilities that one learns and acquires through education, link and mutually recognize diverse capabilities that one learns and acquires and qualification system in each industrial sector would be operated. training, robotization of operation system, the future direction of port skilled worker training in in training system, the future direction of port skilled worker robotization of operation port realize may that workers skilled highly for industry an of creation for aim would Korea In addition, the scope of and efficiency. with high technological concentration operation sectors also be expanded to be combined and shared with other industrial technology may at different levels of development. frequently in the course of sophistication of port operation through mechanization and and mechanization through operation port of sophistication of course the in frequently where it is required to minimize the amount of automation. Considering the situation and handling cargo port of automation and mechanization through workforce assigned the human resources actually required by the industries as consumers of labor. Instead Instead labor. of consumers as industries the by required actually resources human the point labor supplier’s and qualification system from the of providing education, training, point of from the consumer’s it aimed for advancement of education and training of view, proposing the system and for qualificationeducation, oftraining, the workforce as one view, of the production resources. Source the industries with the aim to develop and nurture based on the competency required in [Figure 3-5] [Figure 120 Skill Enhancement to Improve Port Operations in India [Figure 3-6] Model to Enhance Capability of Port Skilled Workers Based on the SQF

Acquisition Acquisition of degree of certification

Acquisition of Acquisition of professional education and experience training

Based on the SQF, the qualification, professional experience, job training results, etc. of port skilled workers are recognized at the same level as academic careers.

Companies Workers ▶ Companies may fairly evaluate workers’ capability and ▶ Employees are guaranteed fair evaluation and reflect the result on the compensation system. compensation system based on their capability. ▶ Companies may encourage workers’ career development ▶ Employees may develop career and design career path and provide proper educational program. based on self-development and learning.

Source: Human Resources Development Service of Korea (2020), https://www.ncs.go.kr/sqf/sqf01/SQF-101-001-01.scdo

3.3. Acquisition of Port Cargo Handling Skilled Worker 121

Qualifications based on the NCS CHAPTER

For a port cargo handling skilled worker to be recognized as a technician or a craftsman 03 Nurturing of Port Cargo Handling Workforce in Korea that is capable of operating the equipment introduced for port mechanization, they may apply for the national technology qualification test (written/practical) provided by the Human Resources Development Service of Korea based on the NCS and acquire a certificate based on which they could operate the port cargo handling equipment. In case a person acquires qualification based on the National Technical Qualifications Act and such qualification requires issuance of license, he (or she) should get their license issued from Si/ Gun/Gu Office for execution of business or employment (for operation of heavy machinery).

Qualifications of Port Skilled Workers Requiring License Issuance (craftsman’s license) Based on the National Technical Qualification Evaluation

Overseeing Type of certificate/ Subject of license issuance Related laws and regulations institution License issuer

Container crane operation • Type of certificate: Human • Article 26 of the Construction Craftsman Resources Loading equipment operation Machinery Management Act • License issuer: Si/ Development • Article 71 of the Forklift operation Gun/Gu Office (or Service of Enforcement Decree of the vehicle registration Korea Excavator operation Construction Machinery offices responsible for Management Act Crane operation issuance)

Source: The above details were edited based on the "subject of license issuance" stated by the Human Resources Development Service of Korea 22 P:60/100 P:60/100 P:60/100 Criteria W:60/100 W:60/100 W:60/100 Acceptance Acceptance Test crane crane driving driving Forklift Forklift Loading and road operation operation Practical Practical Container equipment Written Test Introduction to loading equipment Common English operation, driving, Cargo loading, Forklift unloading, Safety Transportation, management Container crane general and general Container crane mechanical, Electrical and system, system, Container terminal Hydraulic and Safety management practices, related laws

Korea Port Training Port Training Korea port logistics Korea Institute high school Training Institution Training Accredited vocational vocational Accredited center’s training 3 months course Public vocational center, training In-house vocational center, training vocational Accredited center training -  -  - Private academy Name Forklift Forklift Loading operation operation operation Container Craftsman Craftsman With the aim for effective management of related certificates, the Human Resources Meanwhile, with regards to the training of small-sized forklift and excavator operation, operation, excavator and small-sized forklift of training regards to the with Meanwhile, equipment Interview with Port Training Institute Incheon (March 7, 2020) Institute Incheon (March with Port Training Interview Qualification

Crane Operator Crane Container crane Container crane

System to Evaluate Theoretical Job Capability of Craftsmen 3-6> System to Evaluate Theoretical

Construction machinery institution, Electric and work equipment, Excavator Excavator Private academy Hydraulic general, Construction driving W:60/100 operation related to construction machinery management law and road P:60/100 machinery and road traffic method, Safety driving management

Construction machinery engine electricity, Crane work equipment, Crane Crane operation In-house vocational Hydraulics in general, Construction operation W:60/100 training center machinery management regulations and road P:60/100 and road traffic methods, Safety driving management

Source: Human Resources Development Service of Korea, Q-Net Website (www.q-net.or.kr)

Only the candidates that attain 60 points or above out of the perfect score of 100 points in the written test to assess theoretical job capability and practical test may receive the certificate.

Even if a candidate passes the written test provided by the Human Resources 123 CHAPTER Development Service after receiving education and training, the candidate should be able

to use the devices required for the equipment’s operation in an efficient manner and to 03 make technical response to basic emergency situations involved in their work to finally pass Nurturing of Port Cargo Handling Workforce in Korea the practical test. The assessment standards of the practical test to evaluate the capability required in port cargo handling of port skilled workers are explained in the

below.

Major Operation Capabilities Required for Certification

Qualification name Competency

The capability to operate the crane based on instructions from the on-site supervisor and the signalman and to transport the container to the designated Container crane operator place on the land (e.g., yard). The candidate may carry out daily check of the crane and conduct simple repair and maintenance work for preventative purposes.

The candidate has the capability to operate the derrick and crane installed on the vessel based on signal from the signalman and to move and load the cargo on the Loading equipment operator vessel and the land. The candidate may operate the devices and carry out simple maintenance work for preventative purposes in an independent manner.

The candidate has the capability to operate the forklift to load, unload, and Forklift operator transport the materials and goods from the production site, warehouse, berth, etc. and may carry out simple repair and maintenance work for preventative purposes in an independent manner.

Excavator operator The candidate may excavate or move the materials like soil and pebbles from the Craftsman Excavating port or the construction site while operating the excavator and carry out daily machine operator check and repair and maintenance work for preventative purposes.

→ Legal ground Partner training institution Partner training Article 22-2 and Article 22-3 of of on the Development the Act Skills of Workers Vocational 1, Item Article 52, Paragraph 6 of the Enforcement Decree Insurance of the Employment Act - - - - Report of education results Provision of education and training Provision Competency training in the joint training center in the joint training training Payment of training fees Payment of training → Partial delegation of education and training the MOU Company Z participating in Application to and participation in education and training … Joint training center Joint training The candidate may operate the crane that lifts heavy cargo from large-sized large-sized from cargo heavy lifts that crane the operate may candidate The unloading yards in construction projects, sites, civil engineering construction sites, and lessees’ place sites, construction and warehousing ports, transportation of business. Purpose of project the MOU Provision of education and Provision training Company A participating in MOU Crane operator Crane Human Resources Development Service of Korea (2020) Service of Korea Development Human Resources Human Resources Development Service of Korea (2020) Service of Korea Development Human Resources The above details were edited based on the of "subject license issuance" stated by the Human Resources Development Service of Korea of Korea Qualification name Qualification :  :  :  Such operation of the system is enabled by the region- and industry-based talent talent industry-based the region- and the system is enabled by of operation Such The system to manage qualification standards of port skilled workers and to assess to assess and skilled workers qualification standards of port The system to manage Conclusion of firms for an industrial workforce; Addressing the labor shortage of small and firms for an industrial workforce; Addressing medium-sized enterprises (SMEs) and increasing the employment rate by career-interrupted women, and middle-aged people and the elderly, training the vulnerable Improving the technology and competitiveness of SMEs by increasing their needs to their training tailored programs participation in training Providing tailored education and training based on the demands of local based on the demands of local Providing tailored education and training • • Source [Figure 3-7] Execution System 3-7] Execution [Figure Source employment. The details of such a customized talent nurturing system are as follows. The details of such a customized talent employment. and Industrial Needs Nurturing System Customized for Regional 3-8> Talent

4. Overview of Port Logistics Workforce Operation in Korea

125 In case the workforce carrying out logistics in ports are separated into skilled workers CHAPTER and professionals, the classification may be made as the table below. 03

Professionals and Skilled Workers in the Field of Port Cargo Handling Nurturing of Port Cargo Handling Workforce in Korea

Classification Port professionals Port skilled workers

• The workforce having the professional • The workforce having the professional knowledge required for operation of the port, function required for operation of the port, Definition harbor hinterland complex, and logistics harbor hinterland complex, and logistics center center

-- Planning, management, -- Logistics Classification execution, etc. -- Regular workers -- Daily workers managers -- Office workers

Source: The above details were edited based on "the necessity of nurturing and training of the workforce with professional functions in the field of port logistics" by Korea Port Training Institute, Incheon Training Institute (2009).

In case the port logistics professionals are classified based on the type of job, the office workers related to terminal operation, including the office managers responsible for planning, finance, IT, material, contract, procurement, etc. (e.g., office workers and executives of cargo handling companies), berth and terminal operation managers, container yard operation managers, gate related workers, safety managers, and security managers may be classified as the ‘port logistics management workforce’ and the workers working at the terminals based on their developed technology and function to operate the equipment for port cargo handling and the ones with professional functions for technical areas like harbor hinterland complex may be classified as ‘port logistics skilled workers’. the on based logistics: 23 port of field Daily workers the in - Provision of simple labor workers handling on a daily basis as members of labor union. the port and transport Daily workers provide labor for cargo Daily workers • skilled professional nurture to - Cargo handling workers education of Regular workers necessity The

The ones hired by cargo handling companies The ones hired by - Office workers • 2009, Nam, Korea The above details were edited details The based were above on "the necessity of nurturing of and the training functions with work in professional force the field of port logistics" by Korea Port Training Institute, Incheon Training Institute (2009). Training Institute, Incheon Training Port by Korea the field of port logistics" :  Definition Port skilled workers may be defined as the workers that are responsible for unloading, for unloading, that are responsible be defined as the workers may Port skilled workers 4.2. Concept and Classification of Port Skilled Workers in Korea of Port Skilled 4.2. Concept and Classification However, there has been no legal ground or academic definition to define port 4.1. Concept and Classification of Port Logistics Professionals in Professionals Port Logistics of and Classification 4.1. Concept cargo handling of management responsible for executives the include Port professionals case of the Port of Incheon (presentation) Classification Young-woo Classification mechanization and technological operation of ports and to conduct technical work in other sites of ports mechanization and technological operation where logistics activities take serve in the places workers related to cargo handling. Such skilled logistics centers, and terminals. place, including harbor hinterland complexes, and Daily Basis on a Regular Working Port Skilled Workers 3-10>

These cargo handling workers are either the operator or the supervisor of the equipment maintained by cargo handling companies and qualify as skilled workers. Meanwhile, the daily workers that are members of the port and transport labor union, are mostly simple manual workers that either do not use equipment in a direct manner or carry out their work without being dependent on equipment, excluding the winch men that operate the winch installed inside the ship. Most daily workers operate the winch installed in the ship, carry out signaling, and conduct sling work to install a hook on the cargo to connect it with (or release it from) the crane. As seen above, the labor demand created around the port industry could be separated into that for port professionals and skilled workers. In addition, port skilled workers are separated into the regular workers directly employed by cargo handling companies and the daily workers providing simple manual labor for cargo handling on a 127 daily basis as members of the port and transport labor union. CHAPTER 03 As the talent nurturing and education system is affected by the demand for human Nurturing of Port Cargo Handling Workforce in Korea resources caused by the port industry, the education and training system and the course of career development for port professionals and port skilled workers have developed in a different manner. From the career development’s point of view, jobs and job types are separately understood due to the labor control of the port and transport labor union, which exerted a significant influence in the course of establishment of the port cargo handling labor structure in Korea. In particular, port skilled workers are separated into regular daily workers due to the two-tier system of labor and management that controls labor in port cargo handling.

It is notable that regular workers belong to cargo handling companies, while daily workers provide labor to the aforementioned companies as members the port and transport labor union. In addition, cargo handling companies do not have control over personnel affairs of the workers despite the fact that they consume labor. Even though there is less room for negotiation between the labor and management, as the port and transport labor union exercises an exclusive right to provide labor force for port cargo handling based on the closed-shop system, job security of the daily workers that are both port skilled workers and the members of the port and transport labor union is practically guaranteed, and this is the reason that the labor supply in the field of port cargo handling in Korea maintains its stability. - . . However, efficient 27 , and supervisor and , 26 , hold man hold , 25 , signalman , 24 The working hours are not fixed due to fluctuation of cargo handling volume during during The working hours are not fixed due to fluctuation of cargo handling volume Port cargo handling workers work in a joint manner. A working team of a winch man, A working team of a winch man, work in a joint manner. Port cargo handling workers Before commercialization, cargo handling companies dispatched the cargo handling companies dispatched the cargo handling Before commercialization, cargo handling In the case of bulk cargo, they could be handled in an efficient and safe manner only if the 4.3. Assignment of Port Skilled workers and Their Way of Work Way and Their Skilled workers of Port 4.3. Assignment in most cases, and therefore, are mechanized, of these days handling work Most cargo ers’ safety and work efficiency work take balance, and to tidy-up after hook, to help the cargo the it from land, to anchor the sling on the hook and release for actual labor management. responsible matters and are work-related Signalman: A person that communicates the situation of the hold to the crane operator in an accurate manner to ensure the work manner to ensure in an accurate operator Signalman: A person that communicates the situation of the hold to the crane using working tools either inside the ship or on the up or tie the cargo for the work to wrap Hold man: A person that is responsible all to regards with members group the control and lead supervisors workers, of unit a is which group, of head the As Supervisor: Winch man: A person operating the winch, which is an unloading equipment installed inside the ship the winch, which is an unloading equipment installed Winch man: A person operating

25 26 27 in terms of the way cargoes are handled in ports before and after commercialization. in terms of the way peak and off-peak times. Even though cargo handling workers work eight hours a day in 24 should be built to guarantee work efficiency. Workshould cannotbe bebuilt doneto inguarantee work anefficiency. efficient manner in cooperative the on based work (her) his out carry to fails working team the of one any case to are asked method. Therefore, since the workers system and the control based on working work in teams due to the need of cooperative system at work, no major difference is found assigned to each site was determined based on consultation between the labor and based on consultation between the labor and assigned to each site was determined management. system should be formed, and a cooperative operator signal man, hold man, and equipment equipment operators and the foreman to the site, while the port and transport labor union while the port and transport and the foreman to the site, equipment operators man winch the dispatched to a certain extent after commercialization, as the workforce management became possible on consultation between the on the site was determined based assignment of port workers labor union and the size of workforce and the port and transport cargo handling company and beside the vessel to load the cargo onto the crane and unload it from the crane are assigned. are the crane from it unload and crane the onto the cargo load to vessel the beside and in case various wire rope slinging and tidy-up is essential responsible for Intervention of workers and dozers are utilized. equipment, including forklifts, excavators, process bulk cargo) cannot be done without intervention from port workers. from port workers. cannot be done without intervention process bulk cargo) that are responsible of winch installed on the vessel, signalmen the gear winch men that operate that are located both inside teams, and workers of signals between working communication for the workers carry out their work using the equipment specialized for cargo handling. handling. for cargo equipment specialized work using the carry out their the workers However, no work is completely automated, and the especially, work on general berths (to 128 Skill Enhancement to Improve Port Operations in India principle based on the Labor Standards Act, they continue working until the work is done in case the processed volume is large. In addition, since there is no separation of day and nighttime work in cargo handling, in case the processed volume is large, workers are asked to work overtime or during late-night hours to support early embarkation, even though they work in two shifts in principle. The aforementioned way of work continues to appear after commercialization. However, since cargo handling companies employ all port workers in compliance with the legal and systematic standards, including the Labor Standards Act and the wage and collective bargaining agreement between the labor and management after commercialization, they make the best efforts to comply with the regular working hours in order to minimize the economic burden from payment of additional allowances, including overtime allowance.

4.4. Status of Port Workforce

Status of Port Workers by Region

2018 2017 Change

Port and Port and Port and Classifica- Member Member Member 129 tion transport transport transport Total compan- Total compan- Total compan- CHAPTER labor labor labor ies ies ies union union union 03 Total 19,630 13,641 5,989 19,681 13,582 6,099 -51 59 -110 Nurturing of Port Cargo Handling Workforce in Korea

Busan 6,982 6,035 947 6,670 5,692 978 312 343 -31

Incheon 2,481 2,364 117 2,573 2,453 120 -92 -89 -3

Ulsan 1,248 412 836 1,275 429 846 -27 -17 -10

Yeosu, 1,709 1,022 687 911 214 697 -202 -192 -10 Gwangyang

Pohang 1,594 759 835 1,600 739 861 -6 20 -26

Masan 1,257 706 551 1,348 776 572 -91 -70 -21

Gunsan, 892 393 499 888 397 491 4 -4 8 Daesan

Mokpo 750 358 392 757 377 380 -7 -19 12

Donghae 738 329 409 740 326 414 -2 3 -5

Jeju 610 184 426 629 175 454 -19 9 -28

Pyeongtaek, 1,369 1,079 290 1,290 1,004 286 79 75 4 Dangjin

Source: Korea Port Training Institute (December 31, 2018) 3 9 -4 75 59 20 -19 -89 -17 -70 343 -192 Change - - 3 6 40 74 12 73 81 12 967 656 Others 17 202 161 186 643 219 793 223 385 7,236 2,765 1,642 workers Technical Technical 2017 48 182 216 134 158 321 737 198 435 379 5,379 2,271 General General workers 397 377 326 175 429 739 776 1,004 5,692 2,453 1,214 Total 13,582 - - 3 17 33 53 24 31 93 14 927 659 Others 83 23 695 196 678 223 345 198 144 1,574 7,349 3,090 workers Technical Technical 2018 28 351 737 192 313 443 347 178 214 143 161 5,365 2,286 General General workers 412 759 706 393 358 329 184 1,079 2,364 1,022 3,641 6,035 Total The Change in the Number of General/Technical Workers of Member Companies of Member Workers General/Technical in the Number of The Change in Each Region Jeju Total Ulsan Busan Masan Mokpo Pohang Region Dangjin Incheon Donghae Korea Port Training Institute (December 31, 2018) Port Training Korea :  Skilled Workers Pyeongtaek, Since the port cargo handling industry covers a range of areas from simple manual labor to of areas from simple manual labor Since the port cargo handling industry covers a range As explained in ‘

Professionals and skilled workers in the field of port cargo Research on ways to nurture the workforce specialized in shipping and port logistics, Korea Maritime Institute, January 2004 specialized in shipping and port logistics, Korea the workforce on ways to nurture Research Gunsan, Daesan

Yeosu, Gwangyang Yeosu, may enter the workforce of port professionals or skilled workers after studying port logistics after studying port logistics skilled workers enter the workforce of port professionals or may graduate from related major in universities or community colleges or entering and graduating to join the workforce of port professionals. schools. Most of them are likely 28 separating the institutions into the ones nurturing professionals and skilled workers. separating education in engineering requiring sophisticated technology and function, it requires systematic high school students from general school. In Korea, from high school to graduate courses ranging handling’ that separated the workforce into port cargo handling professionals and skilled and skilled port cargo handling professionals into workforce the handling’ that separated could be explained through talent nurturing system of Korea the port related workers, Source Port System to Nurture 5. Education and Training



Meanwhile, there is no educational course provided at the level of community college, university, or graduate school to nurture high-level skilled workers in the field of port logistics. Instead, the entry-level skilled workers or certified workers employed in the field of port logistics are developed into the mid- or high-level skilled workers reflecting the peculiarities of ports through the employee training courses of the Korea Port Training Institute after employment.

However, it is notable that even though the Korea Port Training Institute operates the employee training courses for most port skilled workers that are the members of port and 131 transport labor union and the skilled workers belonging to some cargo handling companies, CHAPTER it does not accept and educate the certificate holders that are currently unemployed or the 03 students graduated from educational courses at the level of high school or above. Nurturing of Port Cargo Handling Workforce in Korea

The public and private education and training system of Korea to respond to the demand for human resources created by the port industry is as shown in [Figure 3-8].

[Figure 3-8] Career Paths of the Port Logistics Workforce in Korea

Vocational High School

Characterization High School Meister High School Liberal Art International Trade, International Logistics, Global trade Maritime High School Shipbuilding, Port Logistics, Ocean & marine Meister High School in Port Logistics Sector Korea Port Logistics High School

Technical Colleqes On-the-job Education system for Universities Port Skilled Workers Korea Port Graduate Schools Training Institute

Port Management Professionals Port Skilled Workers

• Logistics Manager & planner, General Manager • Daily Workers : Workers Belonging to the Union • Office Workers Including Executives • Commercialized Workers : Union Members but assigned to port handling companies

Employment Types of Wordforce in Korean Port Logistics Area Graduate schools Graduate port logistics Port hinterlands Entry-level office workers Entry-level Professionals in the field of Professionals Mid- and high-level office workers Mid- and high-level Universities Community colleges union & cargo handling union & cargo Port and transport labor Port and transport Professional port logistics workforce of Korea port logistics workforce Professional ‘Meister’ high school operators Port & terminal skilled workers. skilled workers. the workers to Institute is to provide education and training The original purpose of the Port Training belonging to the port and transport labor union. However, it also carries out training based on and regional government and schools. delegation from the central workers or enter the workforce of high-level port professionals or skilled workers after graduating graduating after workers skilled or high-level port professionals workforce of the enter or workers colleges. from universities and community Korea Port Logistics High School provides demand-based vocational education through guiding the port logistics industry before technology certificates required in the students to acquire important graduation. workforce, they port the join schools graduate and from universities students graduating the case In to enter the workforce as professionals. are likely from vocational high schools and community colleges enter the workforce of The students graduating port professionals or skilled workers. In case the students graduating from vocational high schools or Port Logistics High School enter the Port Korea the from education receiving through level skill their improve may they workforce, port incumbent employees. Institute as Training the field of port logistics to nurture that enter the employees mostly train Institute The Port Training Most students graduating from general high schools enter the field of port logistics through entering through of port logistics field the enter high schools general from graduating students Most schools. related majors in graduate Some study port logistics or community colleges. universities Even though some of the students graduating from vocational high schools enter universities and skilled port professionals or entry-level of entry-level colleges, they join the workforce community industry. in case they enter the port workers schools, the schools may and engineering majors in vocational high Since there are commercial work required at the level of entry-level carry out the workforce that may provide various types of the port industry. in office workers The students graduating from Korea Port Logistics High School either become entry-level port skilled General high schools General • • • • • • • • • • Specialized high schools Other vocations high school Korea Port Logistics High School Korea Multiple resources collected and edited by the authors by collected and edited Multiple resources :  5.1. System to Nurture Port Professionals Port 5.1. System to Nurture Source Port Professionals 3-9] System to Nurture [Figure 132 Skill Enhancement to Improve Port Operations in India There are two types of the system to nurture port professionals in Korea. One is for students of vocational high schools to enter the industry as entry-level office workers; the other is for students graduating from community colleges, universities, and graduate schools to enter the industry as high-level managerial workers.

Even though the level of mechanization in ports is further sophisticated and the level of automation increases from that of semi-automation to full automation as the cargo volume in ports increases in a dramatic manner, the number of port workers has stopped to increase drastically. However, the number of office and managerial workers tends to increase for efficient management of mechanization and automation. On the contrary, the demand for working-level office workers in ports nurtured through vocational or port logistics high schools tends to increase compared to the past. This indicates the fact that the work that used to be dependent on skilled workers is evolving into the form that could be managed by a small number of trained office workers, thanks to mechanization and automation.

5.2. System to nurture port skilled workers 133

[Figure 3-10] System to Nurture Port Skilled Workers CHAPTER

Universities Graduate schools 03 Nurturing of Port Cargo Handling Workforce in Korea General high schools Community colleges Korea Port Logistics High School Employment as technical workers in the Other vocations high school field of port logistics Specialized ‘Meister’ high schools high school Port Training Institute

Skilled port logistics workforce of Korea

Port and transport Port & terminal labor union & cargo handling Port hinterlands operators companies

The demand-and-supply system of port skilled workers in Korea does not have high school courses specialized for nurturing of port skilled workers in each region. The system of vocational high schools to nurture the level of technology required by the extensive range of Korean industries is in place, and therefore, despite the peculiarity of ports, skilled workers graduating from vocational high schools meet the basic technological and functional requirements of ports, and the system to train employees in each port after recruitment and - - fol the of any means complex” hinterland . They indicate the workforce 29 “harbor term the Act, Harbor the of 7 Paragraph 2, Article to According Complexes hinterland: Class 1 harbor hinterland complex: A harbor hinterland complex designed to increase the added-value of a harbor and revitalize the added-value of a harbor and revitalize designed to increase A harbor hinterland complex Class 1 harbor hinterland complex: harbor-related industries, by collectively installing and developing support facilities and water-friendly harbor facilities in the har support facilities and developing installing collectively industries, by harbor-related port; bor zone of an international trade Class 2 harbor hinterland complex: A harbor hinterland complex designed to improve the functions of a harbor and a Class 1 1 Class a and harbor a of functions the improve designed to complex A harbor hinterland harbor hinterland complex: Class 2 Decree, Presidential by installing facilities prescribed convenience to harbor users, by and to provide harbor hinterland complex a harbor zone designated as a zone (excluding in a harbor facility, sales facility and residential business facility, such as a general Class 1 harbor hinterland complex); Laws and regulations related to harbor hinterland complex: Article 2 of the Harbor Act, Article 42 of the Harbor Act, Article 44 of to harbor hinterland complex: related Laws and regulations of the Harbor Act, etc. Decree the Harbor Act, Article 41 of the Enforcement only Class 1 complexes and currently, Class 1 and 2 harbor hinterland complexes, are There of harbor hinterland complex: Types operated. are  and Creation of Jobs of and Creation While the functions of ports are maintaining relatively traditional formats, the workforce relatively traditional While the functions of ports are maintaining ‘The skilled workers in harbor hinterland complexes’ are the skilled workers providing providing in harbor hinterland complexes’ are the skilled workers ‘The skilled workers 6.1. System to Nurture Port Skilled Workers in Harbor Hinterland Port Skilled Workers 6.1. System to Nurture However, However, Port Logistics High School in Gwangyang is a case where the purpose and ▲ ▲ lowing tracts of land designated and developed pursuant to Article 42 in order to increase the added-value of a harbor, revitalize revitalize the added-value of a harbor, to increase to Article 42 in order pursuant of land designated and developed tracts lowing water-friendly and facilities support installing collectively by users, harbor to convenience provide and industries, harbor-related facility, business general a as such Decree, Presidential by prescribed facilities installing by and zone harbor a in facilities harbor the functions of such facilities. to improve facility, sales facility and residential ① ② Port

29 demand in harbor hinterland complexes varies depending on the national development development on the national depending varies complexes in harbor hinterland demand an organic relationship with the of the industries that form and the characteristics strategy function of port logistics. The demand also tends to change fast, reflecting thecharacteristics the port or the port tributary areas where the port related industries could collect and load the port or the port tributary areas where materials through the port in a swift and convenient various goods including products and manner. labor in the specific place called ‘harbor hinterland complex’ to adjacent areas developed the in logistics port support to functions the by caused demand 6. Boosting Growth of Harbor Hinterland Complexes Complexes of Harbor Hinterland Growth 6. Boosting Gwangyang Bay in the region, harmonized with the regional education and talent nurturing nurturing talent and education regional the harmonized with the region, in Bay Gwangyang Therefore, policy. the reason for establishment of Korea Port Logistics High School may program. development of India based on Sagarmala apply to the regional to solely depend on provision of education and training from the Port Training Institute is is Institute Training Port the from training and of education on provision depend to solely maintained. workforce to the newly constructed which is to supply regional reason of its establishment, 134 Skill Enhancement to Improve Port Operations in India of surrounding environment. Therefore, the talent nurturing system reflecting such demand should be able to nurture skilled workers that are able to respond to the needs of complex and diverse areas, compared to the traditional one to nurture port skilled workers. Also, as the modern-day ports are adopting mechanization and automation in a comprehensive manner, the increase in the number of port skilled workers is either very slow or almost stagnated30 compared to the speed of increase in port cargo volume. However, due to the nature of harbor hinterland complexes that may accommodate various industries, the demand for skilled workers in harbor hinterland complexes tends to increase gradually. Over the long term, it is expected that the existing port skilled workforce would migrate to the skilled workforce created by the industries in harbor hinterland complexes.

There are three functions of harbor hinterland complexes that contribute to the increase in the number of skilled workers in the aforementioned areas. First, while it is difficult for the private competitor businesses related to the demands for export, import, and transshipment of cargo that are created through traditional functions of ports to be integrated in the ports due to their exclusive nature as the country’s key industry, the businesses may freely carry out export, import, production, and sales activities in harbor 135 hinterland complexes. Second, in relation to diversification of the port industry, the CHAPTER activities of related industries form an organic relationship with various private sectors. As 03

a result, the production and consumption activities enabled through provision of capital, Nurturing of Port Cargo Handling Workforce in Korea technology, and labor are removing the boundary between the activities in ports and harbor hinterland complexes. Third, bridges between harbor hinterland complexes and certain regions at home and abroad could be built based on strategic choices of the industries that are dependent on port logistics, pursuing the purpose to enhance their function as logistics hubs between countries and regions. Therefore, not only the port skilled workers, but also the active response to the demand for skilled workers reflecting the industrial characteristics of harbor hinterland complexes became an important factor to determine a port’s competitiveness.

6.2. Characteristics of Working Environment in Harbor Hinterland Complexes

The demand for skilled workers in harbor hinterland complexes is increasing, as the size of the land occupied by the companies in harbor hinterland complexes increases, the type and number of companies occupying the land increase, and the type of business becomes

30 According to the analysis on the port industry, the number of business and employees in the industry grew at a slow pace, increas- ing by by 2.6% and 1.7% per annum, respectively. (Survey research on employment statistics of the Korean port industry, Korea Maritime Institute, September 2017) Complexes in Korea Complexes The Ministry of Ocean and Fisheries announced the “plan to boost growth of harbor of harbor The Ministry of Ocean and Fisheries announced the “plan to boost growth 6.3. Job Creation Strategy Using the Harbor Hinterland Using the Harbor Strategy 6.3. Job Creation The job characteristics of skilled workers in harbor hinterland complexes may be be may complexes hinterland harbor in skilled workers of characteristics job The hinterland complexes” (March 12, 2020) to nurture harbor hinterland complexes into into complexes hinterland harbor nurture to 2020) 12, (March complexes” hinterland and Fisheries industrial spaces to create added value and jobs. The Ministry of Oceans on opinions established the “plan to boost growth of harbor hinterland complexes” based general services. general parks, coastal landscapes, man-made beaches, and man-made wetlands may be introduced. beaches, and man-made wetlands may parks, coastal landscapes, man-made with the daily lives of people is provided integrated As seen above, a working environment of characteristics the to addition in complexes hinterland harbor in workers skilled the to hinterland complexes is not in harbor workers the function of skilled port infrastructure, covering functions of ports, but tends to expand into the functions limited to the physical as an avoided and dangerous facility. Most notably, the water-friendly and entertainment the water-friendly and entertainment Most notably, as an avoided and dangerous facility. leisure facilities, including fishing spots, be enhanced through introducing function may and wind surfing facilities, marine museums, ferries, fishing boats, motorboats, yachts, historic sites, performance halls, experience and fishing village folk museums, marine learning facilities, mudflat experience facilities, ocean observatories, walking paths, coastal rooms to introduce the port’s and history, screening rooms to show documentary films to as an entertainment space for public also exist. In addition, the function the general attract public the is general actively introduced in order to maximize the synergy effect to converge ports of image traditional the address to and culture life urban the and port of function the related to the port support facilities exist. In addition, distribution, warehousing, assembling,support facilities exist. In addition, distribution, related to the port facilities research and convenience, employee welfare, employee packaging, processing, and business complexes are generally installed. Reflecting the new trend of these days, rest and education entertainment facilities, training area, accommodation facilities, hospitals, exhibition the port view, to enjoy the area. Parking lots, observatories facilities also occupy defined through understanding the of characteristics physical the space and the functions of the activities. Harbor hinterland complexes are located right behind or adjacent to the port, and therefore, the means of efficienttransportation including roads and railroads that are diverse. This is reflected in the job characteristics of the skilled workers required by the the by required workers of the skilled the job characteristics is reflected in diverse. This industries that type and area of the the Understanding industry. complex harbor hinterland generally occupy harbor hinterland complexes as a factor to affect the job characteristics of set the future direction very important to complexes is in harbor hinterland skilled workers aforementioned workers. in nurturing of the 136 Skill Enhancement to Improve Port Operations in India from regional governments, regional institutions related to port operation, and companies occupying harbor hinterland complexes with the aim to deliver the policy goal to transform harbor hinterland complexes into industrial spaces to generate added value and jobs. In other words, the Ministry has introduced the policy to designate and develop spaces inside the port with the aim to maximize added value in port operation and to boost growth of port related industries, to pursue further sophistication of the port space and diversification of the companies occupying the space based on recent global trend, such as growth of open economy, abolishment of trade barriers, and growth of global logistics activities, to enhance added value of the port industry, and to boost growth of related industries, generating decent jobs and attracting high value-added cargoes. The focus of the policy is to suggest the three implementation strategies to ▲ boost logistics activities to maximize the added value created within the harbor hinterland complex ▲ create jobs customized for the characteristics of the region and the port ▲ and provide a packaged support, covering relocation of the companies and their business management and their detailed action plans. This aims to transform the function of harbor hinterland complexes from simple logistics hubs into complex ones connecting various added-value industries, nurturing the complexes into core industrial spaces to create regional jobs and cargo volume. The policy actively 137 reflects the demand from the companies in harbor hinterland complexes and the industries CHAPTER and promotes job creation and sustainable growth of local economy through boosting 03

growth of harbor hinterland complexes based on joint efforts of regional governments and Nurturing of Port Cargo Handling Workforce in Korea port authorities.

Job Creation Strategy through Utilizing the Harbor Hinterland Complexes in Korea

Important matters Detailed action plan Job creation strategy of implementation

• Nurture harbor hinterland complexes as the hubs for value-added logistics activities: Actively discover promising • Create jobs in the field products and companies in various fields ranging from the of production/logistics/ import of raw materials to the export of finished goods distribution/trade Encouragement • Targeted marketing of each port: Attract companies with -- Create jobs for the of value-added strategic competitiveness, provide benefits, including free workforce to import logistics activities in provision of land for a certain time period, reduction of raw materials and to harbor hinterland lease fees, and extension of lease period process high value- complex • Propose business based on the client’s needs to attract added export products international blue-chip companies in a timely manner -- Create jobs to boost • Loosen up the limitation with regards to relocation of the export of local businesses to produce and process agriculture, livestock, specialties and forestry products in the free trade zone

Creation of local • Designate and operate specialized areas for each port and jobs based on harbor hinterland complex to provide jobs in connection consideration of with regional industries and expand participation from characteristics regional governments of each regional • Permission of each port authority to decide selection of industry and port tenant companies Benefit of tax reduction and exemption Benefit of lease fee reduction - - Job creation strategy Job creation Provide special benefits to the companies delivering excellent results in creation of jobs and cargo volume - - Create jobs in connection Create jobs in industries with regional Expand the role of regional governments in all stages of supply of harbor and operation hinterland complex the system Operate regional to attract companies in some regions on a trial basis - - - • - - - until 2030, considering demand demand until 2030, considering ㎡ Detailed action plan Detailed action companies through developing a program to support the to support the companies through developing a program companies and their employees) connecting Provide convenience to the clients through deal with all stages from system that may the integrated of contact relocation to business support through one point with individual systems the restructuring on “Research the from results the on Based the issue lease fee system (July 2019 - June 2020)”, address logistics and production to applied fees lease different of companies Incheon, Pyeongtaek/Dangjin, Busan, etc.; expand provision Pyeongtaek/Dangjin, Busan, etc.; expand Incheon, 29,700,000 of land by from each port Establish a consultative body of port related institutions: institutions and person in charge Designate management provide support; site-based provide to company each of support (through establishment administrative integrated of the regular consultative body where and operation customs regional government office, regional government, office, etc. participate) Establish a government-wide support platform for efficient in to support tenant companies of the program operation operated separately is complexes that hinterland harbor each government agency and institution (to support by of tenant stable business activities and innovative growth (Port of Busan) Cluster for transshipment and consigned and consigned Cluster for transshipment (Port of Busan) processing business for cold chain and e-commerce (Port of Incheon) Cluster business for freezing and refrigeration () Cluster steel making business, Ulsan port: and petrochemical and business Cluster for green energy Execute private-led development and pre-sale projects in • • • • • • • • The above details were edited based on the "Plan to boost growth of harbor hinterland complexes" (March 12, 2020) (March of harbor hinterland complexes" on the "Plan to boost growth edited based details were The above to business :  management jobs based on Provision of a characteristics characteristics Even Even though the information on nurturing of port professionals in Korea does not covering stages from relocation of each regional consideration of consideration Creation of local industry and port packaged support Important matters Important of implementation supply of human resources in the field of teaching and research to enhance execution execution supply of human resources in the field of teaching and research to enhance and industry the between collaboration through courses education of opening capability, academia, and nurturing of middle managers in the field of logistics. Therefore, the system schools, universities, and community graduate by to nurture port professionals operated directly contribute to the main purpose of this research, which is to develop ways to to ways develop to is which research, this of purpose main the to contribute directly to propose policies, it is understood that the in India and nurture port skilled workers of policies to aforementioned information exerted significant influence in development execution of education, establishment of the basic legal system, nurture port skilled workers, 7. Institutions to Nurture Port Professionals 7. Institutions to Nurture Source 138 Skill Enhancement to Improve Port Operations in India colleges will be reviewed first, before reviewing the major education and training institutions in Korea contributing to nurturing of port skilled workers.

7.1. Graduate School

Based on the status of logistics education courses in graduate schools, universities like Inha University, Incheon University, Seokyung University, and Myungji University have established and operated graduate schools specialized in the field of logistics. Meanwhile, Hankuk University of Foreign Studies, Chungang University, and Dong-eui University have opened logistics or related majors in their business schools. Hanyang University has introduced logistics related majors in the general graduate school.

Status of Logistics Education Courses in Graduate Schools

Classification University Educational course on logistics

Inha University Graduate School of Logistics·Global Logistics MBA·Logistics MBA

Incheon University Graduate School of Northeast Asia Logistics Graduate school Seokyung University Graduate School of Logistics specialized in the 139

field of logistics Myungji University Graduate School of Logistics CHAPTER

Graduate School of International Studies (global logistics and Busan National University port management major) 03 Nurturing of Port Cargo Handling Workforce in Korea Hankuk University of Global Shipping and Logistics Department of HUFS Business Introduction of Foreign Studies School logistics related International business administration/trade/logistics major of department/major Chungang University the Global MBA program in business school Dong-eui University Distribution and logistics major of the MBA program

Source: Website of each university

The logistics education in the graduate schools of Korea is either provided by engineering colleges from the view of engineering or natural science or by business administration colleges from the view of business administration or economics. However, the same courses on cargo transportation, warehousing, unloading, and information and supply chain management are being provided by the schools. Meanwhile, even the business administration colleges (departments) where logistics related departments do not exist have opened logistics related courses and provided the opportunities to the students that have taken such courses to be recruited in the field of logistics.

At the moment, the diversity of the courses provided by logistics education of Korean universities is increasing, and the demand is also on the rise from the ones that receive professional education, acquire theoretical knowledge on port logistics, and are able to Details of courses on logistics logistics theory, logistics information system, logistics accounting, port logistics global port logistics global logistics information system, logistics accounting, logistics theory, global seminar, principles of air logistics, sustainable seminar, cargo and transportation logistics supply chain global seminar, logistics business model analysis theory, smart city logistics theory theory, application of AI, special port economy Logistics cargo warehousing management transportation and theory, theory, unloading logistics policy accounting theory, logistics and distribution related laws, logistics theory, resource logistics theory, management logistics global theory, insurance logistics theory, logistics analysis information theory, system, CALS/EC, logistics re-engineering, logistics management quality management, distribution related theories, marketing cargo maritime law, chartered shipping management theory, Global logistics theory, shipping maritime management theory, port loading theory, theory, transportation SCM, theory, shipping company theory, maritime insurance accounting theory, distribution theory project project management, international business environment & from strategy, sustainable development to CGR, CGR and diversity management, personal development, logistics management, logistics and SCM case study, communication skills, intercultural air study, global logistics case logistics information case study, system case study, logistics industry and policy case study logistics case study, Logistics management shipping theory, and port logistics research, logistics decision principles method, investigation and research analysis, demand cargo theory, making cargo analysis, data logistics basic marketing, logistics global economics, shipping of advanced port operation theory, demand planning, advanced marine transportation logistics facility planning, special logistics industry theory, and management theory, and air logistics seminar, transportation airport management and planning theory, logistics simulation, logistics service logistics system seminar, logistics system design, consulting, SCM and logistics research, transportation cargo theory, management global management theory, companies, logistics company of shipping business practice green logistics policy theory, global logistics practice, theory, complex transportation Logistics decision making warehousing theory, and unloading supply theory, logistics information theory, logistics accounting theory, chain management (SCM), procurement theory, production management theory, distribution management system dynamics, production, management theory, marketing management theory, e-commerce and logistics, reverse logistics theory, practice, distribution, and logistics logistics theory, strategy administration business analysis, data chain supply airport aviation industry theory, industry theory, shipping management theory, theory, logistics Asia Northeast theory, transportation complex theory, management export theory, management multinational company law, transportation international global theory, management logistics green theory, clearance customs import and logistics law, theory, economic analysis, logistics industry and policy logistics theory, logistics demand analysis and forecast, global industry and policy theory, transportation analysis, logistics investment and analysis, regional logistics market logistics market financial analysis, business theory, logistics economy financing, military logistics theory, Logistics Logistics Department International Logistics MBA Website of each university Website Foreign Studies Foreign Inha University :  Graduate school Graduate Graduate School of Graduate Graduate School of Graduate Graduate School of Graduate Incheon University Seokyung University Global Logistics MBA Hankuk University of Northeast Logistics of HUFS Business School Shipping and Logistics Source

Examples of Logistics Courses in Graduate Schools Courses in Graduate 3-15> Examples of Logistics

The logistics education in universities is provided through ▲ establishing logistics related colleges or departments ▲ introducing logistics major in business administration college, international trade college, engineering college, etc. or ▲ introducing logistics courses either in colleges or departments related to logistics in either direct or indirect manner. It is understood that there are approximately 80 universities that have logistics related majors. Even though there are an increasing number of universities, especially the ones located in port cities, which establish and operate logistics related departments and majors, there is only an extremely limited number of professional courses to nurture port logistics workforce.

The College of Maritime Transportation System of Mokpo Maritime University and the College of Logistics System Engineering and the College of Shipping Business Administration of Korea Maritime & Ocean University are the examples of the universities nurturing port logistics workforce at an undergraduate level. The aforementioned universities that are specialized in the field of traditional port and logistics have either considered their location that is adjacent to 141 the port or introduced port logistics related colleges (departments) and majors as a competitive CHAPTER strategy to differentiate themselves as a university located in a rural area from others. 03 Nurturing of Port Cargo Handling Workforce in Korea

Status of Logistics Education Courses in Universities

Classification University Course name

Inha University Asia-Pacific School of Logistics

Mokpo Maritime College of Maritime Transportation System University (Global logistics system major)

Sunchon National College of Business Administration and Trade (logistics Undergraduate course in University major) the field of logistics Chonnam National College of Transportation and Logistics System University Engineering

Korea Maritime and Department of Logistics System Engineering of the College Ocean University of Shipping Business Administration

Incheon University Department of Global Logistics

Chungang University Department of Global Logistics

Halla University Department of Logistics and Distribution

Department and major Namseoul University Global distribution major

Pukyong University Global trade/logistics major of the College of Global Trade

Logistics and distribution course of the College of Business Jeonju University Administration Course name Logistics and distribution major Logistics and University Halla University Most colleges (departments) of business administration, global trade, industrial industrial trade, global administration, (departments) of business Most colleges related courses. etc. have introduced logistics engineering, Others Classification Website of each university of each university Website :  The APSL provides a single major of logistics in its educational course. However, Introduction and operation of undergraduate schools and departments of logistics and departments of logistics schools of undergraduate operation Introduction and Department and major Department shippers, and consulting firms and in various areas including government institutions, state- of large-sized run companies, national policy research institutes, and research institutes companies. (Asia-pacific School of Logistics of Inha University) abroad. The school operates an interdisciplinary program reflecting the industrial demand for knowledge and combining the studies in the field of business economics, administration, work as logistics from the logistics major may and engineering. Most students graduating and professionals in companies, including local or logistics related business administration air carriers, global production companies, distribution companies, logistics companies, and related classes are provided in the areas. The school has expanded language and on- and related classes are provided in employment aptitude and for the student’s site education to provide learning customized majors in other minor or have dual majors or interdisciplinary needs. Its students may work capability before employment enhance their actual universities. The students may both at home and programs internships, and training through participating in practices, schools and departments of logistics in multiple Korean universities. multiple Korean schools and departments of logistics in SCM, on four major areas, including logistics management and concentrate students may logistics, and logistics industry and economy, logistics system and information, global themselves. Using the aforementioned fund and the university’s own funds, Inha University fund and the university’s themselves. Using the aforementioned developed the APSL as the most representative “new brand” college. The school targeted management personnel that had practical nurturing of professional global logistics in the 21st century that was the age of business and knowledge and global perspective undergraduate of and operation introduction encouraged establishment Its information. strategy to develop Korea as the economic hub in Northeast Asia and execution of logistics hub in Northeast Asia and execution as the economic to develop Korea strategy innovation in companies. For five consecutive years between 2003and 2008, the Ministry of Education, Science and Technology created supporting funds of approximately KRW 13 billion to support the universities in Seoul metropolitan area that successfully differentiated in in Korea started to increase in 2004 when Asia-Pacific School of Logistics (APSL) was of nurturing support to policy government’s the on based University Inha by established in implementation of the government’s the lead take that may global logistics professionals Source 142 Skill Enhancement to Improve Port Operations in India 7.3. Community College

At the moment, the logistics education in community colleges is still at a nascent stage. Business administration related departments in some community colleges have opened one or two logistics related classes. In the field of port logistics, development of educational courses to liaise the industry with the academia in community colleges has recently increased. For instance, Korea Port Training Institute Busan, a subsidiary body of Korea Port Training Institute is operating a port logistics education and training through forming a consortium with Tongmyung Information College. Meanwhile, Korea Port Training Institute Incheon has operated courses at an undergraduate and associate degree level targeting the employees of port related companies in Incheon area through joint efforts with Inha Technical College.

Status of Port Logistics Education Courses based on Industry-Academia Cooperation

Major and regular Institution Partnering university Course number of students

Tongmyung Information Port logistics and port safety College (2-year Port system (40) Korea Port Port equipment system 143 community college)

Training CHAPTER Institute Busan Tongmyung University Port distribution Port logistics system (4-year university) management (40) Port management theory 03

Korea Port Port logistics theory·port policy theory Nurturing of Port Cargo Handling Workforce in Korea Department of Ship and Training Inha Technical College ·port management theory·port Marine System Institute (2-year university) marketing theory·port logistics (Port logistics major, 40) Incheon information theory

Source: Website of each institution

In the case of operation of the “port logistics major” introduced by Korea Port Training Institute Incheon for the Department of Ship and Marine System of Inha Technical College in 2002, the course was operated based on delegation from companies, and the students were selected among the employees that served for at least six months in the institutions and organizations related to the Port of Incheon based on documents without tests. The course was opened through consultation among Inha Technical College, Korea Port Training Institute Incheon, Gyeongin Port and Transport Labor Union, and Incheon Port Logistics Association. The course was operated through providing the theoretical education in Inha Technical College and the practical education in Korea Port Training Institute Incheon. Classes were provided four times a week (6:30 p.m.-9:30 p.m.), and the major courses included port policy theory, port management theory, port marketing theory, and port logistics information theory. 30% of tuition was provided as scholarship to all of the students entering the course. After graduation, they were given the associate degree and the qualification to be transferred to 4-year universities upon request. (Incheon Ilbo, January 5, 2002) Details of education Practical trade theory, export and import transportation practice, global logistics global logistics practice, transportation export and import theory, trade Practical management strategy Global logistics English, pricing structure and practice Logistics system and procedure of export and import cargo and logistics information system E-logistics, logistics & SCM Container terminal operation management (Six modules of ILO education program) EDI and program Container terminal operation Container terminal business viability analysis method and productivity of container terminals strategy Labor management and marketing Unloading system and automation terminal of container terminals Container terminals and EDI • • • • • • • • • • Details of the Practical Courses Provided by KMI on Container Terminal KMI on Container Terminal by Courses Provided Details of the Practical Operation course Terminal Operation Terminal operation (50 hours) (70 hours) Korea Maritime Institute Korea Education course :  The education course was largely composed of the course on export and import logistics The education course was largely composed 7.4. Korea Maritime Institute - Practical Course on Container on Container Course - Practical Institute Maritime 7.4. Korea terminal container on course practical a introduced (KMI) Institute Maritime Korea Export and import logistics Practical course on terminal Practical Source 120 hours was assigned for training. Lecturers were composed of shipping and port logistics provided until 2018, a total of 50 two trainings professionals at home and abroad. Through completed the course. trainees 3-18> 

The Korea Maritime Institute considers establishing a “course to nurture global maritime logistics professionals” through expanding and restructuring the existing course in a comprehensive manner based on diverse educational needs and levels of trainees. In other words, it plans to operate the separate courses, consisting of an advanced policy course targeting high-level executives of related companies, high-level managers of regional governments, etc., a course for middle managers that served at least five years in related industries, and a course for working-level employees targeting the newly recruited in related industries and organizations and the working-level employees that served less than 3 years in the industries. 145 CHAPTER

8. Institutions to Nurture Port Skilled Workers 03 Nurturing of Port Cargo Handling Workforce in Korea

In the case of talent nurturing in the field of logistics by regular high schools governed by the Ministry of Education, Science, and Technology of Korea, a total of six high schools, including Port Logistics High School (Gwangyang-si), Youngjong International Logistics High School (Incheon-si), Tongmyung Engineering High School (Busan-si, former Busan Port Logistics High School), Gyeonggi Logistics High School (Pyeongtaek-si), Daejeon International Trade High School (Daejeon-si), and Shinil Business High School (Goyang-si), have established special courses for logistics talent nurturing. It is estimated that around 520 students graduate the aforementioned high schools to join the logistics related workforce. Among the schools, Korea Port Logistics High School is the only regular public educational institution designated as the ‘meister’ high school to nurture professional skilled workers of the port industry by the Ministry of Education, Science, and Technology. Even though it seems that all of the six schools provide education on logistics based on their curriculum, the five schools, excluding Port Logistics High School, are focused on general education of economics, information, accounting, etc., while Port Logistics High School is specialized in the courses on professional technology and technical education required by port skilled workers. 31

31 Final report on ways to stabilize the labor supply in logistics (Asia-Pacific School of Logistics of Inha University), The Ministry of Land, Transport and Maritime Affairs Various scholarships Various purposes Overseas language training for practical for practical training 32 rooms Provision of dorm Provision Assignment of 20 students per class Korea Port Logistics High School Korea fees for 3 years :  Exemption of tuition Exemption In addition, it is a model collaboration of the industry and the academia where the the where academia the the industry and of a model collaboration is it addition, In Korea Port Logistics High School is a regular 3-year high school to nurture “meisters” and Korea 8.1. Korea Port Logistics High School 8.1. Korea Korea Port Logistics High School was established in 1948 and reopened in 2010 as the There is no community college or university specialized in training of professional skilled of in training or university specialized community college There is no Korea Port Logistics High School, http://kpl.hs.jne.kr Korea

Source 32 [Figure 3-11] Incentives Provided by Korea Port Logistics High School Korea by Provided 3-11] Incentives [Figure of Education, regional government, companies, and school join hands to provide financial and years, three for fees tuition fees, admission School operation. school’s the to support all students, and the students are provided support fees are exempted for school operation with individual dorm rooms with high quality facilities. companies, to serve their military duties as professional technicians, and to develop their as professional technicians, and to develop their companies, to serve their military duties and working at the same time after graduation. career through entering related universities Ministry of Education, representing Science the and government, Technology District Offices is a specialized educational course to nurture “young meisters”, who are professional skilled is a specialized educational course to of the government. It is a special-purpose high school on behalf of the port industry, workers in the field of port logistics that was established through a thorough evaluation procedure. or related port industry the hired by to be the students course helps Its educational professional workers of the port logistics industry in its department of logistics equipment of logistics equipment logistics industry in its department of the port professional workers operate to is school the of goal educational The operation. system logistics and technology to nurture the industry of demands on actual based programs learning experience-based required at work. talents with technologies and functions ‘meister’ high school, a special-purpose high school, in the field ofport logistics to nurture workers of the port industry. The Korea Port Training Institute is the only one that nurtures is the only one that Institute Port Training The Korea port industry. of the workers port killed workers at a level higher than that of high school. However, the fundamental employees to port training education and Institute is to provide Training the Port purpose of port labor unions. belonging to the and to the skilled workers 146 Skill Enhancement to Improve Port Operations in India The school took an approach to select and focus in operation of its departments, separating them into the Department of Logistics Equipment Technology and Logistics System Operation. It has limited the number of students per class to 20 to enhance efficiency in learning and developed a system to nurture the workforce equipped with professional technology and function through providing practical learning based on actual demand of the industry. In addition, reflecting the social demand caused by the demographic and social changes of Korea, the school provides preferential treatments to the children of the persons with distinguished service to the state, returnees, foreigners in Korea, and North Korean defectors.

8.1.1. Overview of department operation

The departments of Korea Port Logistics High School are operated in the way that carry out both theoretical and practical education to help students acquire essential functions required at work and obtain certifications of related technologies and functions before graduation.

147

Overview of Operation of Departments in Korea Port Logistics High School CHAPTER

Number of Number of Department Type of admission Special admission

classes admissions 03 Nurturing of Port Cargo Handling Workforce in Korea General admission 47 Department of Logistics Equipment 3 Special admission 7 -- Admission for social integration Technology -- Admission of the employees of Total 54 logistics related companies -- Admission of the candidates General admission 32 Department of recommended by school Logistics System 2 Special admission 4 principals Operation Total 36

-- Children of the persons with distinguished service to the state: 3% or less of the regular number of students Non-regular -- Returnees, foreign students, children of North Korean defectors admissions -- The ones prescribed by Article 82, Paragraph 3 of the Enforcement Decree of the Elementary and Secondary Education Act: 3% or less of the regular number of students

Source: Korea Port Logistics High School

The direction for the future after graduation is suggested through explicitly stating the certificates to be obtained by the students before graduation and designating them as education and training performance achievement standards of the school. Technical workers in workers Technical companies Port industry Field of industrial technology Soldier technicians in the military in companies Office workers Logistics companies Field of trade Field of IT ------Career paths after graduation Career paths obtained Forklift operation operation Forklift craftsman Container crane craftsman operation Overhead crane craftsman operation Electricity craftsman craftsman Welding of Acquisition and IT accounting, ERP, related certificates Major certificates to be Major certificates • • • • • • Mandatory courses Mandatory operation equipment Port operation Distribution/logistics/trade/ accounting and other commerce related courses Practice of hydraulic equipment of hydraulic Practice maintenance of PLC and sequence Practice of non-equipment Practice maintenance of unloading equipment Practice • • • • • • Acquisition of Major Certificates by the Students of Port Logistics High School of Port Logistics High by the Students of Major Certificates Acquisition and Their Career Path after Graduation Career and Their Korea Port Logistics High School Korea :  System System 8.1.2. Talent Nurturing of the Department of Logistics Equipment Technology Nurturing 8.1.2. Talent Meanwhile, the Department of Logistics System Operation is a commerce related Also, the school has 187 types of practice equipment and materials in 12 practice rooms. and materials in 12 practice equipment Also, the school has 187 types of practice With regards to current operation of Korea Port High School, Department of Logistics Operation Equipment of Logistics of Logistics Technology Department Department Department practice room. As most equipment and materials are computer related ones, their level of room. As most equipment and materials are computer related ones, their level of practice check, data back-up, and disposal of materials use is being enhanced through operational The school is making efforts to capability. advanced management based on the school’s equipment the upgrading and securing continuously through trend newest the reflect department and has practice rooms, including the trade practice room, port operation operation port room, practice trade the including rooms, practice has and department integrated and room, practice automation port room, laboratory business room, practice teaching and learning capabilities based on trainings that use its own internal equipment equipment internal own its use that trainings on based capabilities learning and teaching of Department the from graduate classes three in students 60 Around materials. and Logistics Equipment Technology each year. The graduating students enter not only the electricity. but also diverse industries including the field of machinery and logistics industry, In the case of the practice of large-sized equipment and materials that are difficult to be equipment and materials that are difficult to be of large-sized In the case of the practice by educated and to delegated is practice the crane), container (e.g., school the in installed professional Institute. The school improves the Port Training Korea external institutions like Equipment Equipment Technology has practice rooms, including the mechatronics room, electronic room, unloading equipment application practice room, electric communication practice room, and air pressure practice room, industrial facilities room, hydraulic practice operation room. maintenance practice electric application room, and port equipment Source



Type of Talent Nurturing of the Department of Logistics Equipment Technology

Areas of work after Related jobs Department employment Related (Medium Executed work Note name (Small/medium certification category) category)

• Transportation • Electricity equipment craftsman • Transportation maintenance worker • Preservation Technical equipment • Crane installation and craftsman workers maintenance worker maintenance worker • Dangerous related to • Machinery NCS • Building freezer, materials transportation equipment refrigerator, and management and machinery installation and air conditioner • Air conditioning Department maintenance worker installation and and freezing of Logistics maintenance worker craftsman Equipment Technology Equipment • Forklift and machinery 149

operation CHAPTER operation and • Goods transportation craftsman assembling • Crane operator equipment operator • Tower/overhead NCS worker • Forklift operator (lift operator) container crane 03 Operation/ operation Nurturing of Port Cargo Handling Workforce in Korea transportation craftsman related worker

Source: Korea Port Logistics High School

8.1.3. Talent nurturing of the Department of Logistics System Operation

‘Meister’ high schools are defined as the ones customized for industrial needs in accordance with Article 90, Paragraph 1, and Item 10 of the Enforcement Decree of the Elementary and Secondary Education Act. According to the Enforcement Decree, “where necessary to directly reflect industrial demand in education, the head of any of the following high schools may autonomously draw up a curriculum differently from the ones notified by the Education Minister”. Therefore, the most important goal of Korea Port Logistics High School as a ‘meister’ high school is to increase employment rate of graduating students and to enhance their quality of business execution through structuring and operating the educational courses in a flexible manner to develop educational content reflecting industrial needs.

NCS NCS Note Second semester Senior (2017)

First semester 2 2

Second semester Computer specialist certification Certified professional logistician Certified origin specialist English (Grade Trade 1,2, and 3) International trade specialist Inspector 2 3 ------

------Related certification First Sophomore (2018) semester

Second semester

First export and import cargo Warehouse management Trade clerk Trade Marine transportation clerk Inspection and quantity inspection of Freshman (2019) semester Executed work • • • • 0 4 5 unit Operation Operation unit above above above Standard 2 units or 2 units or 2 units or category) employment employment (Small/medium (Small/medium management, place of origin management, distribution management) Inspection and evaluation Business management clerk (logistics management, export and import Areas of work after Areas of work • • life Subject General General Successful machinery professional Basic system Ship workers Business (Medium category) related office Related jobs operation and operation Operation and Operation Subject transportation transportation Office workers subject administration administration (Group) and accounting Common Table of Educational Courses of the Department of Logistics Equipment of Educational Table Technology of Port Logistics High School Technology professional Basic subject Korea Port Logistics High School Korea :  name 8.1.4. Educational Course of the Department of Logistics Equipment Technology 8.1.4. Educational Course of the Department At the moment, the total number of faculty members of Korea Port Logistics High School System System Courses Common Operation subject II of Logistics Department Subject area Professional Department Department

 3-23>
Type of Talent Nurturing of the Department of Logistics System Operation of Logistics of the Department Nurturing Talent of 3-22> Type

Electrical 2 units or 5 2 3 circuit above

Electronic 2 units or 5 3 2 circuit above

Industrial 2 units or Basic subject 6 3 3 facility above

Electric 2 units or 5 3 2 facility above

General port 2 units or 4 4 logistics above

Practice of unloading 2 units or 5 2 3 equipment above operation

Container terminal 2 units or 4 2 2 operation above 151 equipment CHAPTER

Circuit and 2 units or

5 3 2 03 control theory above

Professional Nurturing of Port Cargo Handling Workforce in Korea subject II Practice of electrical 4-30 14 7 7 Basic subject motor control not inclusive in the PLC 4-30 10 5 5 government’s programming notice Practice of hydraulic 4-30 10 5 5 equipment maintenance

Practice of unloading equipment 4-30 10 5 5 and machinery maintenance

Industrial safety 4-30 4 2 2 management

Logistics 2 units or 4 4 Practical management above subject Inside wiring 4-30 10 5 5 4 0 5 29 31 35

Second Second semester semester 4 0 5 29 31 35 Senior (2017)

First First Senior (2017) semester semester 4 2 4 4 2 5 15 30 34

Second Second semester semester (2018) 4 5 6 4 4 5 19 30 34 Sophomore

First First Sophomore (2018) semester semester 4 8 2 4 4 10 30 34

Second Second semester semester 8 4 8 30 34 2 2 First

First Freshman (2019) semester semester Freshman (2019) 4 6 0 4 6 8 4 6 10 10 unit unit Operation Operation Operation Operation unit 4-30 units above above above above above above above above above Standard Standard 2 units or 2 units or 2 units or 2 units or 2 units or 2 units or 2 units or 2 units or 2 units or life Subject related English English logistics Logistics Logistics Business Subject resource laws and principle economy corporate corporate Successful inspection Integrated Integrated Practice of Practice commerce Accounting Accounting regulations Commercial professional General port General management International Total units per semester Total Subtotal of subject units Subject (Group) in the notice Subject subject (Group) Number of subjects per semester Common Table of Educational Courses of the Department of Logistics System Operation of of Logistics System Operation of Educational Courses of the Department Table Port Logistics High School Unit of creative experience activities Unit of creative experience Subtotal of professional subject units Subtotal of professional professional not inclusive Basic subject government’s government’s Basic subjects Korea Port Logistics High School Port Logistics Korea :  8.1.5. Educational Course of the Department of Logistics System Operation Course of the Department of Logistics 8.1.5. Educational area Subject subject II Subject area Professional



Practice of 4-30 10 5 5 global logistics

Practice of

Basic subjects logistics center 4-30 10 5 5 not inclusive work in the Practice of government’s customs 4-30 10 5 5 notice Professional clearance subject II Industrial safety 4-30 6 3 3 management

Logistics 2 units or 4 4 management above Practical subject Export and import 4-30 12 6 6 management

Subtotal of professional subject units 8 10 19 15 29 29 153

Subtotal of subject units 30 30 30 30 31 31 CHAPTER

Unit of creative experience activities 4 4 4 4 4 4 03

Total units per semester 34 34 34 34 35 35 Nurturing of Port Cargo Handling Workforce in Korea

Number of subjects per semester 8 8 5 2 0 0

Source: Korea Port Logistics High School

8.2. Korea Port Training Institute

Korea Port Training Institute, established in March 1989, can be named one of the training institutions with specialty in port logistics. Korea Port Training Institute made its turnaround for being established as an institution with expertise and focus on training for port workers, with inauguration of a labor-management-government committee for establishment of training institutes in accordance with the presidential order in February 1985. With the permission from Korea Maritime and Port Administration to be established as an independent corporation by restructuring and merging with then existing Injeong Vocational Training Center under Incheon Federation of Port & Transport Workers Union and Korea Port Training Institute, the then attached organization of Busan Container Terminal Operation Corporation in March 1989, Korea Port Training Institute was established, opening its Incheon Training Institute (currently Korea Port Training Institute Incheon) in June 1989 and Busan Training Institute (currently Korea Port Training Institute Busan) later in 1990, to offer practical education and training programs that would 33 training Various customized Various instructors Competent professional KPTi Institute Training Training Korea Port Korea and equipment Field oriented educational training The best training facilities The best training Korea Port Training Institute Incheon (http://www.kptii.or.kr/) Institute Incheon (http://www.kptii.or.kr/) Port Training Korea Korea Port Training Institute Incheon Port Training Korea :  70% of the fund for establishment and operation of Korea Port Training Institute is Institute is Training Port of Korea operation and establishment for fund of the 70% Korea Port Training Institute provides training programs for experts and professionals in in professionals and experts for programs training Institute provides Training Port Korea The key goals of establishment and operation of Korea Port Institute are offering vocational Source:  Source:

secured by reflecting part of the planned wage increase of the members of the Port and reflecting part of the planned wage increase of the members of the Port and secured by Transport Labor Union. Based on the principle that Korea Port Training Institute shall 33 is in search of reaching the goal of promoting stability in employment through improving through improving is in search of reaching the goal of promoting stability in employment by professionals and experts relevant of skills honing and industries port of productivity cargo port technology for advanced new deploying and developing identifying, collecting, changes in the global port industry. handling to proactively respond to drastic the port industries who are hired by or provide cargo handling labor to port transportation cargo handling labor to port transportation or provide the port industries who are hired by by stipulated operators port overseas or businesses related transportation port businesses, the Harbor Transport Business Act (Article 27-3 of the Harbor Transport Business Act) and industries; enhancing productivity of port industries by proactively responding to rapid proactively responding to rapid of port industries by industries; enhancing productivity and development activities on new conducting research mechanization and modernization by unemployment preventing and technology; relevant spreading and industries the in technology to thus promote stability in employment. of port workers Source experts and professionals in port for training and continued education and training training be essential for workers in port industries in port management, port cargo handling and and handling cargo port management, port in industries in port workers for essential be port safety. and transportation Institute Port Training of Korea Mission Statement 3-12] [Figure 154 Skill Enhancement to Improve Port Operations in India originally have been co-funded by the de-fact benefactor of training consigners, the members of the Port and Transport Labor Union, and cargo operators, the decision was made in July 1986 to secure funding by reflecting in port cargo handling charge. Education and training expenses are the main source of revenue of Korea Port Training Institute, and the level of the expenses applied to the port cargo handling costs varies based on the level of mechanization of cargo handling work. In the case of general cargo handling, the expenses are 0.5% of the inside-the-ship work costs; in the case of special cargo handling, they are 1% of basic costs. In the case of the container berth of the Port of Busan, they are 0.5% of the basic costs, while in the case of beside-the-ship cargo handling, they are 0.3% of all costs (Cheol-hwan Han, 2005).34

For education and training expenses, which is the main revenue source for Korea Port Training Institute, depending on level of mechanization of unloading work, cost of charged as following: 0.5% of the on-board charges for general unloading; 1% of basic charge for special unloading; 0.5 % of basic charge at container docks of Busan Port; and 0.3% of basic charge for on-shore loading. 155

The organization of the Korea Port Training Institute consists of three divisions: the CHAPTER headquarters, the Busan Training Institute, and the Incheon Training Institute. The 03 headquarters has a standing director, who assists the chairperson in managing the training Nurturing of Port Cargo Handling Workforce in Korea center’s affairs. Currently, the Korea Port Training Institute has a total of 53 members, including three permanent members, 31 teachers and 18 general positions. Among them, the Incheon Training Institute has eight teachers, twelve general workers, and a total of twenty- one teachers, including the director, and the Incheon Training Institute has six Ph.D., one Ph.D., and one master’s degree.

8.2.1. Overview of Training Programs of Korea Port Training Institute

Korea Port Training Institute offers mainly two courses – regular education and training courses and special education and training course. The regular education and training course are subdivided into newcomer education and training courses; skill foster education and training courses; progress education and training courses; IT education and training courses; and safety education and training courses, while the special education and training courses are subdivided into customized education and training courses; circuit education on port safety, mandatory education and training courses by law, vocational training for unemployed and government commissioned education and training.

34 Studies on outlook of demand and supply of port logistics workers and measures for fostering of relevant workforce in Korea. Publi- cation of Korea Logistics Research Association (Source: (ATC). Crane Transfer Automated 10) and (AGV), and advancement of port loading and of port loading and and advancement 35 Vehicle Guided Automatic 9) Forklift, 8) Stacker, Reach 7) Tractor, Yard Hence Hence Korea Port Training Institute, with its education and training programs for port Meanwhile, all ports are placing their efforts in enhancing competitive edge of ports, efforts in enhancing competitive edge of ports, Meanwhile, all ports are placing their One of the key features of education and training courses offered by Korea Port Port Korea courses offered by and training features of education One of the key Korea Port Training Institute, since its establishment in 1989, has been educating and educating and in 1989, has been its establishment Institute, since Training Port Korea 6) Monthly Marine and Shipbuilding, http://www.shipbuilding.or.kr) Main unloading machinery at ports: 1) Transfer Crane (T/C), 2) Container Crane, 3) Top Handler, 4) Straddle Carrier, 5) Yard Chassis, 5) Yard Carrier, 4) Straddle Handler, 3) Top (T/C), 2) Container Crane, Crane Main unloading machinery at ports: 1) Transfer

to reality. to reality. 35 to ensure satisfaction of customers including shipping companies and consigners and consigners and to ensure satisfaction of customers including shipping companies and ceaseless its makes Institute Training Port Korea Furthermore, service. port of improvement efforts in updating contents for education and training and relevant methodby monitoring relevance and tangible outcome of scope of application of law, as well as timely offering of ensure relevancepolicy direction for amendment and improvement of law and regulation to more importance. strengthening for plans long-term and mid planning in efforts its continues workforce, measures for the workforce ports and improving training competitive edge of Korean of service offered by workforce in the ports to seek customer satisfaction (i.e. shipping workforce in the ports to seek customer satisfaction (i.e. shipping of service offered by sustainable ports, of edge competitive securing for parallel, In consigners). and companies To attention. to gather began port in the workforce of based on safety of service provision these respects, the education and training offeredby Korea Port Training Institute gained as well as ensuring efficiency of logistics, by improving quality of port service, starting starting service, port of quality improving by logistics, of efficiency ensuring as well as recent part of the has become that such Considering for customer satisfaction. with safety, port service providers recognized necessity of improvement trend in port logistics industry, fruit with efficient operation of ports in the country. The education and training courses courses training The education and of ports in the country. operation fruit with efficient for operating skilled workers handling, training course on port cargo include practical courses courses in port cargo handling, and training equipment used in ports, professional help hone professional skills foster managers and supervisors at work and to designed to (Seung-beop Ahn; Hyeong-il Kim, 2006). Training Training Institute is that policy decision were made by the state to fulfill demand for skilled responding to mechanization professionals for decision and efforts are bearing had been facing, and such ports in Korea discharging that all training the total of 31,528 experts and professionals, while Korea Port Training Institute Institute Training Port while Korea professionals, and experts of 31,528 the total training professionals 13,347 for training providing been has 1989, in opening its since Incheon, and experts until 2019 and Korea Port Training Institute Busan has been offering training since its opening in 1990. for 18,181 trainees courses, as of 2019, 156 Skill Enhancement to Improve Port Operations in India 8.2.2. Laws and Systems in Korea Related to the Supply and Demand of Port skilled workers

Legal Basis for Support in Supply and Demand for Port Skilled Workers (Unit: number of persons)

Items Legal Basis

Basis for Establishment of • Article27-4 of the Harbor Transport Business Act Korea Port Institute

• Education and Training for the Harbor Transportation Workers (Article 27-3 of the Harbor Transport Business Act) Basis for Education and • Qualification for Operation of Harbor Construction Equipment (Article 29-4 of the Training Courses Harbor Act) • Construction Machinery Operator’s License (Article 26-4 of the Construction Machinery Management Act)

• Legally mandatory education and training for workers among port transportation Education and Training by business owners and port transportation-related industries who are exposed to Law for Port Workforce in higher risk of accidents (Article 27-3 of the Harbor Transport Business Act, Article Port Logistics 30-2 of the Enforcement Rule of Harbor Transport Business Act)

Source: Korea Port Institute Incheon

157

Performance in Education and Training of Port Workers in 2019 CHAPTER

Number of Trainees in 2019 Number of Trainees in 2018 Education & Training Courses Total Incheon Busan Total Incheon Busan 03 Nurturing of Port Cargo Handling Workforce in Korea Regular Education & Training Courses 1,305 462 843 1,430 336 1,094

Customized Education & Training 2,690 2,592 98 465 417 48 Courses

Newcomers 151 102 49 218 196 22 Mandatory Education & Training Courses Experienced by Law 3,979 353 3,626 6,750 1,958 4,792 Workers

Circuit Education on Port Safety 1,937 875 1,062 887 11 876

Government-commissioned Education 62 38 24 47 47 - & Training

Relevant Agencies-commissioned 204 174 30 311 233 78 Education & Training Courses

School-commissioned Education & 49 - 49 190 - 190 Training Courses

Total 10,377 4,596 5,781 10,298 3,198 7,100

Source: Korea Port Institute Incheon 84 58 82 31 10 (Unit: number of persons) Qualification: 265 ship operation Forklift operation Forklift Excavator operation Mobile crane operator Mobile crane Container crane operation Container crane limitations on jobs with level of toxicity and risks Loading and unloading equipment of Loading and unloading equipment Qualification of skill in accordance to rules regarding Qualification of skill in accordance to rules regarding Number of Trainees Acquired National Technical National Technical Acquired Number of Trainees 6 12 36 732 519 289 (22%) Cargo handling companies & others Number of Trainees: 1,305 Number of Trainees: IT Union Safety Workers training 1,016 (78%) Newcomers Skill fostering Korea Port Training Institute Incheon Port Training Korea :  In addition, in order to effectively demonstrate skills and functions based on their own The basis of Korea’s education and training in port skilled workers focuses on improving in port skilled workers education and training The basis of Korea’s 8.2.3. Performance in Regular Education and Training Courses for Port Skilled Courses for Port Training Education and in Regular 8.2.3. Performance Progress education & Port & Transport Workers Workers Transport & Port highly strict safety education based on the results of annual review of the contents and and contents the of review annual of results the on based education safety strict highly weight of safety education to promote the safety of workers. In addition to the efficiency of in accordance with international standards, work, the level of safety and welfare of workers, is controlled in quality and quantity of education, and the situation of the field is monitored. to improve safety in various work environments of ports and information processing processing to improve safety in various work environments of ports and information to important also is It situations. and times the of changes the with cope can that capabilities from danger. have a safety management competency to protect workforce and their teams and re-education on various Institute not only conducts new Port Training The Korea the state, but also conducts the law established by technologies and functions prescribed by according to the characteristics of the cargo of key customers and the characteristics of the characteristics customers and the key of the cargo of according to the characteristics ports and the main customers. commodities handled by seek port skilled workers sustainable job performance, capabilities, and to demonstrate in ports and to improve customer satisfaction. The skill and capability that port skilled The skill and capability that port skilled in ports and to improve customer satisfaction. appropriate perform to capacity comprehensive as to referred are have must workers to meet the port infrastructure possessed by all facilities and equipment tasks of operating the customer achieve the service target requested by the functions of port logistics and to Source are regarded as workforce providing labor based the quality of all human resources that

Performance in Regular Training and Education and Education Training in Regular 3-27> Performance
Performance in Regular Education & Training Courses in 2019 (Unit: number of persons)

Institutions Total Number of Trainees Incheon Busan Performance Mandays Courses Performance Mandays Performance Mandays

Total 1,305 (7,285) 462 (3,431) 843 (3,854)

Basic 6 (30) 6 (30) - -

Skill fostering 732 (5,848) 324 (3,005) 408 (2,843)

Progress 519 (1,263) 93 (279) 426 (984)

IT 12 (36) 12 (36) - -

Safety 36 (108) 27 (81) 9 (27)

Source: Korea Port Training Institute Incheon * ( ) indicates calculation of man-days (Calculation formula = number of days of training x number of trainees)

The education and training courses that Korea Port Training Institute offers can be subdivided into basic; skill fostering; continued education; IT and safety education and training courses. Among these courses, Korea Port Institute has skill fostering education 159 CHAPTER and training courses focus on common re-education and re-training of port skilled workers

to ensure stability in supply of skilled workforce for loading and unloading in ports. Those 03 workers who take part in these kinds of courses are mostly the workforce that directly Nurturing of Port Cargo Handling Workforce in Korea provide labor at the sites of loading and unloading at ports and they are essential for operation of mechanized and automated equipment for cargo operation at ports.

Education & Training Courses Offered by Korea Port Training Institute

Category Course name Educational goal/achievement

Port Loading & Unloading Practices Storage, loading & unloading Basic Port Transport Practices Transportation

License for forklift operation Certificate

Loading and unloading equipment of ship operation (fostering) Certificate

Forklift operation (4 weeks) Certificate

Mobile crane operation Certificate Skill Excavator operation Certificate fostering Forklift operation (1 week) Certificate

Mobile crane operation Certificate

Excavator operation Certificate

Car loading and unloading Certificate (164) 3,854 <429> Mandays Busan 843 (35) Safety Safety Safety Safety <179> General Support Support Certificate Certificate Certificate Certificate Certificate (Unit: number of trainees) (Unit: number of trainees) Management Performance Miscellaneous Miscellaneous Miscellaneous Miscellaneous Practical affairs Practical affairs Practical Storage, loading & unloading Storage, loading & unloading Storage, loading & unloading Storage, Storage, loading & unloading Storage, 30 30 <66> (306) 3,431 Educational goal/achievement Educational Mandays Incheon 6 6 462 (53) <22> Performance 30 30 (470) 7,285 <495> Mandays Total 6 6 (88) 1,305 <201> Foreman Line handling Course name Performance Logistics manager Surveyor practices Measurer practices Communication skill 3PL logistics business Yard trailer operation trailer Yard On-site port supervisor Cargo checker practices Cargo checker Port operating manager Port operating Workers union supervisor Workers PDP container safety work Self-leadership development Analysis of Accidents at Ports Analysis of Accidents Health & Safety for Supervisor PDP container vessel operation Practical use of Microsoft EXCEL use of Microsoft Practical Port Loading & Discharging Safety Innovation in logistics management Practical use of Microsoft Power Point use of Microsoft Practical Leadership development for port manager Leadership development Planning and operation container terminals Planning and operation Total Subtotal Practice of port cargo handling Practice IT Institution Korea Port Training Institute Incheon Port Training Korea Skill :  Safety training fostering Basic Category Continued education & Course Source Courses Performance of Individual Education & Training 3-30>

46 460 46 460 Theoretical (4) (40) (4) (40) Container Test <2> <20> <2> <20> Crane Operation Performance 92 460 12 60 80 400 Test (6) (30) (1) (5) (5) (25)

Loading and unloading 104 2,080 55 1,100 1,100 980 equipment of ship operation (5) (100 (5) (100) (100)

24 360 24 360 Forklift Operation (1) (15) (1) (15)

Mobile Crane Operation 3 45 3 45

Excavator Operation 31 465 31 465

Theoretical 5 25 5 25 Forklift Test (1) (5) (1) (5) Operation Skill Mobile Crane fostering Performance 13 65 4 20 Operation 9 45 Test (1) (5) (1) (5) 161

Excavator Performance CHAPTER 19 95 11 55 8 40 Operation Test

Theoretical 03 8 40 8 40 Test Nurturing of Port Cargo Handling Workforce in Korea Forklift Operation Performance 107 535 81 405 26 130 Test (19) (95 (17) (85 (2) (10)

Car Loading Operation 16 160 16 160

77 222 30 90 44 132 License for Forklift (9) (27) (1) (3) (8) (24) operation of <1> <3> <1> <3> smaller-sized construction 38 114 1 3 37 111 equipment Excavator (6) (18) <1> <3> (6) (18) <1> <3>

Source: Korea Port Institute Incheon * ( ) indicates number of employees of cargo handling companies / < > indicates other numbers

All education and training programs offered by Korea Port Training Institute are conducted in accordance with the National Competency Assessment Standards (NCS), which conforms to the evaluation method of Human Resources Development Service of Korea, and thus certificates will be valid not only within the ports but also in any other industries where similar tasks are carried out with identical types of machines and equipment. Hence Korea Port Training Institute maintains adequate level of education and training hours, as the capacity and skills of port skilled workers are managed according to NCS. 50 15 (2) <5> 200 240 110 645 146 (20) (15) (162) <104> <220> 2,843 <245> Mandays Busan 3 55 10 73 40 48 (4) (3) (1) <1> 215 408 (34) <44> <52> <47> (Unit: number of trainees) of trainees) (Unit: number Performance 57 15 33 (3) 135 160 (35) (33) <57> <63> (243) 3,005 Mandays Incheon 5 32 19 45 11 (1) (7) (11) 324 (32) <19> <21> Performance 50 15 33 57 12 15 (2) (3) <5> 135 240 360 146 110 645 (15) (55) (33) <57> (405) <220> <104> 5,848 <308> Mandays Total 5 4 3 11 45 48 19 10 72 73 55 (3) (1) (1) <1> 215 (11) (11) 732 (66) <19> <52> <44> <68> Performance

bulk Safety Support practice manager Measurer programs programs operation of loading workforce port union equipment for retiring Leadership Yard trailer trailer Yard and bracing chemicals in Liquid cargo port union II blocking and management bracing cargo bracing port manager for dangerous (skill training) Supervisor for Supervisor for Cargo blocking Cargo foreman handling safety Safety manager Skill training for Skill training development for dangerous goods Subtotal Skill Institution Progress fostering Education & Training Course

Performance of Education & Training Courses & Training of Education 3-31> Performance

Course Performance Mandays Performance Mandays Performance Mandays

Safety manager for dangerous chemicals in 83 83 83 83 bulk in ships for <80> <80> <80> <80> Progress supplying fuel Education (skill training) & Training Reinforcement of 28 84 28 84 Organizational Power

519 1,263 426 984 93 279 Subtotal (13) (38) (1) (2) (12) (36) <132> <184> <132> <184>

Source: Korea Port Institute Incheon * ( ) indicates number of employees of cargo handling companies / < > indicates other numbers

Performance in IT and Safety Education & Training Course (Unit: number of trainees) 163

Institution Total Incheon Busan CHAPTER

Course Performance Mandays Performance Mandays Performance Mandays 03

Practical use of Nurturing of Port Cargo Handling Workforce in Korea Microsoft Power 4 12 4 12 Point IT

Practical use of 8 24 8 24 Microsoft EXCEL <1> <3> <1> <3>

12 36 12 36 Subtotal <1> <3> <1> <3>

Port loading and 27 81 27 81 unloading safety (9) (27) (9) (27) Safety

First aid 9 27 9 27

36 108 27 81 Subtotal 9 27 (9) (27) (9) (27)

Source: Korea Port Institute Incheon * ( ) indicates number of employees of cargo handling companies / < > indicates other numbers

These courses are providing training in IT management skills that are essential for performing their tasks and thus achieve enhancement of efficiency of port cargo handling work by increasing the linkage with related departments of work performed by port skilled workers. 5 29 85 25 239 2,209 2,592 Trainees Number of 9 1 1 2 26 10 49 (Unit: number of trainees) Sessions Number of safety safety examination examination Special course Special course Working People Working Course Offered Port cargo handling Port cargo handling Happy Workplace for Workplace Happy technical qualification technical qualification preparing for national preparing for national Fostering port signal man Fostering Subtotal Wando Incheon CJ Logistics Organization Incheon Inner-port Operation Company Operation education & training courses education & training courses education & training Trainees who completed regular Trainees of Port & Members companies Transportation Transportation Workers Union Workers Trainees of government-commissioned Trainees Cargo handling Target Trainees Target Incheon In parallel, as each port in Korea displays difference nature in of functionality, work and Port skilled workers will be required to complete safety education and training courses courses safety education and training will be required to complete Port skilled workers Further, recent mechanization and advancement of equipment ports are clearly ports are clearly of equipment and advancement recent mechanization Further, Training Location of Education &

Performance in Customized Education & Training Course & Training 3-33> Performance in Customized Education

Enhancement of capacity Ulsan 2 65 of supervisors Members Loading and unloading of Port & equipment operation 13 Transportation (practical skill) Workers Union Busan, Jinhae Busan Container crane 1 operation (practical skill)

Trainees of education & training Container crane courses commissioned by 1 20 operation (practical skill) Gyeongsangnam-do

Subtotal 4 98

Total 53 2,690

Source: Korea Port Institute Incheon

8.2.4. Mandatory Education & Training for Port Workforce Required by Law 165 Article 27-3 of the Harbor Transport Act in Korea stipulates that it is mandatory for CHAPTER “persons who engage in accident-prone activities” amongst those involved in harbor 03 transport business or business related with harbor transport to take part in related Nurturing of Port Cargo Handling Workforce in Korea education and training. Thus, Korea Port Training Institute offers education and training courses for newcomers and incumbent workers.

As for the education and training courses, newcomers are required to complete 12 hours of mandatory courses within 6 months after the date of recruitment, while incumbent workers are required to complete 2-hour mandatory courses every 3 years. Any workers who has not completed these mandatory courses for newcomers and incumbent workers shall be strictly restricted from port transport jobs.

8.2.4.1. Newcomers and Incumbent Workforce

Education and Training for Newcomers and Incumbent Workers Offered by Korea Port Training Institute (Unit: number of trainees)

Number of Trainees Participate Institute Year Newcomer Incumbent Total

2018 196 1,958 2,154 Incheon 2019 102 353 455 36 617 738 167 774 950 404 9,433 3,013 1,734 1,000 Total 4,814 3,675 Total 8,489 2,609 11,098 - 3 6 6 59 72 17 29 17 42 28 2019 (Unit: number of trainees) (Unit: number of trainees) - - 77 40 64 40 21 325 308 288 223 2018 4,792 3,626 8,418 2,311 10,729 Incumbent Yeosu Others Seosan Wando Dangjin Goheung Pyeongtaek West Jeonbuk West West Jeonnam West Number of Trainees Participate Trainees Number of West Chungnam West Seoul & Gyeonggi Year Organization 22 49 71 298 369 Newcomer 36 404 617 738 167 774 950 3,013 1,734 1,000 Total 9,433 36 13 87 240 874 280 196 191 379 2019 1,555 3,851 2018 2019 Year - 80 391 377 860 458 804 583 571 2018 1,458 5,582 Total Subtotal Subtotal Performance of Education and Training at Korea Port Training Institute by Institute by Port Training at Korea Performance of Education and Training Organization and Region Organization Jeju Ulsan Total Busan Jinhae Busan Busan Incheon Donghae Suncheon Institute Gyeongbuk Gwangyang Gyeongnam Korea Port Institute Incheon Korea Korea Port Institute Incheon Port Institute Korea :  :  8.2.5. Training Tour for Prevention of Disasters in Port Cargo Handling of Disasters in Port Cargo for Prevention Tour 8.2.5. Training of Korea prevention of accidents in port cargo handling, lecturers and trainers For 8.2.4.2. Performance by Organization & Region Organization by 8.2.4.2. Performance Year Organization Port Institute has been touring around 15 ports in Korea nationwide every year to conduct nationwide every year to Port Institute has been touring around 15 ports in Korea individual to relevant be would that materials hazardous of handling and safety training ports. Source


Participation of Education & Training Offered by Korea Port Institute by Individual Ports (Unit: number of trainees)

Year 1994-2013 2015 2016 2017 2018 2019 Total Organization

Total 41,930 4,525 4,325 4,516 887 1,937 58,120

Busan 12,288 2,411 2,700 2,337 812 1,026 21,574

Incheon 3,865 411 - - - - 4,276

Ulsan 1,648 123 151 334 6 - 2,262

Masan 1,420 - - 304 11 - 1,735

Pohang 3,714 460 368 252 6 2 4,802

Jinhae 654 122 29 73 8 - 886

Yeosu (Gwangyang) 1,904 - - 329 - - 2,233

Jeju (Seogwipo) 4,239 294 286 259 33 34 5,145

Donghae 1,993 - 78 - 8 75 2,154

Mokpo 1,516 96 100 146 - 94 1,952 167 CHAPTER Wando 1,100 80 70 68 - 65 1,383

Gunsan 4,889 249 261 291 - 314 6,004 03 Nurturing of Port Cargo Handling Workforce in Korea Jangheung (Dangjin) 1,611 197 173 - 3 155 2,139

Seosan - - 31 39 - 44 114

Chungseo (Daecheon) 96 40 37 - - 51 224

Pyeongtaek 993 42 41 40 - 31 1,147

Goheung - - - 44 - 46 90

Seoul & Gyeonggi ------

Source: Korea Port Institute Incheon

Safety education and training designed for prevention at ports consist of 1 hour of theory education and 1 hour of audiovisual education. While the theory education delivers lectures on safety, industrial safety and health regulations, the audiovisual education is designed to raise awareness for prevention of accidents by playing video clips on accident prevention and cases of accidents or conducting education and training for accident prevention. Card Card System System 9 49 40 Remark Learning Learning Tomorrow Tomorrow Tomorrow Trainees Number of 38 24 62 (Unit: number of trainees) (Unit: number of trainees) Trainees Number of 1 4 3 Conducted 1 3 2 Number of Times Sessions Conducted Number of Period 3 months 2 months Education & Training & Training Course (practical skill) (practical Yard trailer operation trailer Yard Education & Training Education & Training Container crane operation operation Container crane cargo system Course operation Container equipment Education & Training & Training Port operation Port operation transportation transportation Total Total College do Labor High School Organization Ministry of Commissioning Busan Kyungsang Busan Kyungsang Organization Korea Port Logistics Korea Employment and Employment Gyeongsangnam- Commissioning Performance in Education & Training Commissioned by Central and Local Central Commissioned by Performance in Education & Training Governments Korea Port Training Institute Incheon Port Training Korea Korea Port Training Institute Incheon Port Training Korea :  :  Busan Busan These commissioned education and training courses are designed to provide job seekers to provide job seekers courses are designed education and training These commissioned 8.2.6. Commissioned Education & Training & Training Education 8.2.6. Commissioned While education and training for port skilled workers and incumbent workers in the Incheon Location Location Source Source Schools Commissioned by Performance in Education & Training 3-38>


Performance in Education & Training Commissioned by Related Agencies of Korea Port Training Institute

Number Number Commissioning Education & Training Target Audience of Location of Times of Organization Course Education & Training Conducted Trainees

Forklift under 3t 11 84

• Incumbent foreign General industry workers Excavator under 3t 3 7 -- The Philippines: 17 -- Nepal: 8

• Incumbent foreign workers Incheon -- The Philippines: Human Resources Forklift operation 1 25 -- Bangladesh: Development -- Nepal: Service of Korea -- Indonesia: -- Vietnam:

Excavator operation 2 58

Subtotal 17 174

Busan Busan Techno Park Yard trailer operation 3 30 169

Total 20 204 CHAPTER

Source: Korea Port Training Institute Incheon 03 Nurturing of Port Cargo Handling Workforce in Korea Korea has introduced a foreigner employment permit system for workforce from 16 countries in accordance with EPS (Employment Permit System)36, and thus, foreign workforce is hired in a number of ports in Korea. Most of such workforce from outside of Korea would be assigned to jobs with relatively lower risk and requirement for lower skill levels. Yet in case the workforce face difficulties in levels required for port cargo handling jobs in Korea, Korea Port Training Institute offer adequate education and training courses for foreign workforce. Education and training courses for foreign workforce have positive significance in offering the foreign workers with opportunities for continuity in their career when they return to their countries of origin, as well as reaching the goal of promoting safety during their employment in Korea. Furthermore, the courses encourage and motivate the foreign workforce to perform their task with integrity.

36 EPS (Employment Permit System) is a system designed to supply sectors that lack human resource with low-skilled workers at cer- tain level, while minimizing impact on domestic labor market by conducting labor market tests. 04 CHAPTER

Policy Implications for Training of Skilled Workers to Advance the Port of India

Lead Author : Minyoung Park Second Author : Sangyung Chon

1. Significance of Advancement of Ports in India 2. System to Foster Port Workforce in India and Policy Implication from Korea’s Experience 3. Policy Suggestion for Fostering of Port Skilled Workers 4. International Cooperation Plan for Fostering Skilled Port Workforce between Korea and India 5. Review of Korea–India Joint Project Policy Implications for Training of Skilled Workers to Advance the Port of India

Lead Author : Minyoung Park Second Author : Sangyung Chon

1. Significance of Advancement of Ports in India

1.1. Significance from Viewpoint of National Competitiveness

Advancement of ports that the Indian government pursues can be explained from the viewpoint that reinforcement of competitiveness of ports should first be essential in 171 strengthening national competitiveness. India is a country with the population of 1.38 billion, CHAPTER ranking second in size around the world (UN, 2020) and GDP of $ 320.2 billion, placed on 04

the 5th (IMF, 2020), and land area of 3,287,000 , claiming to be the 7th largest in the world, Policy Implications for Training of Skilled Workers to Advance the Port of India ㎢ and geographically, it is located at the strategic point connecting between Asia and Africa. In the course of industrialization and growth for transformation into an industrialized and advanced economy, India has seen rapid growth of global trade with an average growth rate hovering 6% every year over the past decade. According to the Ministry of Shipping, 95% of trade volume of India and 70% of value are generated from maritime transportation. In this regard, to ensure sustainable economic growth, expansion of infrastructure of ports and advancement and development of port operation needs to be preceded. Moreover, since India is a country with great potential for shipping and maritime industries with 7,517 km of coastline and inland waterways stretching as long as 14,500 km, while at the same time, pushes for formulation of “national mid and long-term development plan” to promote growth of national economy by fostering manufacturing industry. As part of such efforts, the Indian government is actively engaged in economic diplomacy to attract high value-added manufacturing facility by attracting global companies to promote economic projects that elevate the country into a manufacturing powerhouse.

However, India faces limits in attracting global companies due to its insufficient infrastructure of port-based logistics that serve as buttress for front and backend supply of supply, even though the country manages to attract global companies by making full According to IMD, India was evaluated to have to have India was evaluated to IMD, According 37 , while positive outcome has been revealed in cargo handling in cargo handling , while positive outcome has been revealed 38 In parallel, In IBEF parallel, (India revealed Equity Brand that Foundation) investment is anticipated World World Competitiveness Index by the Global Competitiveness Report (June 16, 2020) 41st since 1989 before its slight slide to 45th in 2017 and then later rose back to 44th in 2018 and 43rd in 2019 respectively. 2019 respectively. in back to 44th in 2018 and 43rd its slight slide to 45th in 2017 and then later rose 41st since 1989 before on Russia on the 50th, Brazil by China that was placed on the 20th, followed 2nd, following Amongst BRICS countries, India ranked 5 notches. a rise by 23rd, on the other hand, ranked 56th and South Africa on 59th. Korea, In the national competitive index released by IMD, a management school based in Switzerland, India had maintained to be ranked a management school based in Switzerland, India had maintained to be ranked IMD, by released In the national competitive index Equity Foundation, July 2020) Brand small and medium sized ports. (IBEF: India to have 12 major ports and 205 India is known

37 38 hours, with rapid decrease from 82.32 hours from 2017 to 64.69 hours in 2020 (as of of (as 64.69 hours in 2020 to 2017 from from 82.32 hours decrease rapid hours, with of improvement of can be interpreted as the outcome September 2020). Such achievement efficiency in port management which has been made possible by the efforts of the Indian of improvement infrastructure; port of improvement for mechanization in government level; and responses with agility. draft port facilities. of amount with ports, other in and billion $18.6 to up ports major in 2020 by made be to approximately $28.5 billion in exchange rate, real GDP growth rate, regulation on corporate competition and taxation competition and taxation regulation on corporate real GDP growth rate, in exchange rate, that insufficient improvement has been made to fell. India concluded with its analysis state areas, and lack of vulnerable facilities, which are traditionally resolve infrastructure of vulnerability implied have to deemed be may result the thus, and education in investment released by IMD (Institute for Management Development) indicates that India maintained that India maintained Development) indicates IMD (Institute for Management released by 43rd, following 2019. to be placed on the balance growth rate, long-term employment made improvement in the areas including foreign currency reserves, expenditure on public of current account, export of high-tech, of areas such stability while indicators productivity, and overall education, political stability, promote improvement of growth environment for manufacturing businesses neighboring businesses neighboring of growth environment for manufacturing promote improvement national competitiveness will face efforts in reinforcement of with the ports. Otherwise, limits. use of its geographic locations and abundant labor force to thus attract global companies global companies force to thus attract abundant labor locations and geographic use of its for order In facilities. manufacturing their and competitiveness market secure to seek that to seek be quintessential it will economy, an advanced industrial its status as India to secure that enable sustainable logistics facilities of port-based and advancement modernization revitalize industrial clusters that and further, establish and expansion of manufacturing, 172 Skill Enhancement to Improve Port Operations in India 1.2. Significance from Viewpoint of Port Infrastructure Quality Index

Port Infrastructure Quality Index39 by World Economic Forum provides basic information that enable comparison between India and other countries to learn about level of advancement of port infrastructure in India between 2006 and 2019.

During the analysis period, India was rated on the average of 4 points, with the lowest scoring 3.3 points in 2006 and the highest reaching 4.6 points in 2017, and the country recently scored 4.5 points in 2019. The comparison was made based on estimates by applying identical evaluation criteria for 139 countries from around the world. Since the evaluation started in 2006, the global average reached 4.03 points, while India is placed above the global average. (See Figure 4-1)

[Figure 4-1] Trend in Port Infrastructure Quality Index of India (2006 – 2019)

4.75 173

4.50 CHAPTER

4.25 04 Policy Implications for Training of Skilled Workers to Advance the Port of India

4.00

3.75

3.50

3.25 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: World Economic Forum

As indicated in Figure 4-2, the comparison of the index of India with those of other Asian countries shows that India ranked fifteenth, following Singapore (1st), South Korea (4th), and China (14th) in 2019, while the country ranked 51st, trailing after Singapore (1st), South Korea (11th), and China (49th).

39 Port Infrastructure Quality Index is one of the components of the Global Competitiveness Report released annually by World Eco- nomic Forum. Based on WEF Executive Opinion Survey, a long-term, comprehensive survey conducted based on opinion of over 14,000 business leaders from 144 countries, the index indicates results of quality assessment of port facilities of subject countries. structure a r f n I dex Port

f o ality In on u s Q ari p m 4.50 6.50 6.40 6.40 6.30 5.80 5.80 5.70 5.60 5.60 5.60 5.50 5.50 5.40 5.40 5.40 4.70 4.50 4.50 4.50 4.50 o C lobal G As such, India is currently facing a great 40 53. Mauritius 1. Singapore 2. Finland 3. Netherlands 4. Hong Kong 5. Denmark 6. Japan 7. Panama 8. Belgium 9. Estonia 10. U.S.A 11. South Korea Emirates 12. UA 13. Iceland 14. Qatar 15. Spain 48. Turkey 49. China 50. Eouador 51. India 52. Jamaica

dex n I

y t i Qual ries t n ture u c tru s n Co a r f sia n A I

g Port f Amon o 3.70 6.50 6.30 5.80 5.50 5.50 5.40 5.40 5.20 5.10 5.10 5.10 4.80 4.80 4.50 4.50 4.40 4.30 4.10 4.10 4.10 3.80 3.80 3.70 mparison o C 1. Singapore 2. Hong Kong 3. Japan 4. South Korea Emirates 5. UA 6. Qatar 7. Taiwan 8. Malaysia 9. Azerbaijan 10. Bahrain 11. Oman 12. Israel 13. Saudi Arabia 14. China 15. India 16. Jordan 17. Indonesia 18. Pakistan 19. Sri Lanka 20. Thailand 21. Georgia 22. Vietnam 23. Iran 24. Philippines World Economic Forum (WEF) World For the Port Quality Infrastructure Score basis, respondents who participated in the survey are asked to rate the country’s port facilities and inland waterways on a scale of 1 (underdeveloped) to 7 (wide and efficient according to international standards). access asked to to port rate facilities In are and inland inland countries, waterways respondents on a scale of 1 (impossible) to 7 and rankings. country scores data for evaluating and used as comprehensive aggregated are (easy). These responses :  :  In addition, as of 2019, total cost for national logistics of India accounts for approximatelyIn addition, as of 2019, total cost for national The result of comparative analysis of Port Infrastructure Quality Index implies that the December 12, 2019 Overseas Market News, KOTRA Note challenge in curbing national logistics costs and is striving to expand port infrastructure infrastructure challenge in curbing national logistics costs and is striving to expand port to strengthen part of strategy efficiency as development and improve port operation national competitiveness through port-led economic development. 40 infrastructure and enhancing efficiency of ports operation to thus reinforce national national to thus reinforce and enhancing efficiency of ports operation infrastructure competitiveness. According to the research jointly conducted by ASSOCHAM and Resurgent of logistics India, the industry is expected to save $ 50 billion in costs when the percentage approximately 5%. cost out of GDP decreases by 14% of GDP, signaling that the percentage is relatively higher than that of advanced advanced of that than higher relatively is percentage the that signaling of GDP, 14% Considering that more than 90% of import and export countries, making up 7 ~ 9 % of GDP. through ports, the percentage further indicates that India will have volume transported of ports to be preceded for enhancing establishing port efforts in advancement to make level of advancement of ports is disproportionately low, considering that the country is the considering that low, level of advancement of ports is disproportionately and thus, faces urgent need for securing global GDP, 5th largest in the world in terms of of ports. competitiveness through advancement Source [Figure 4-2] Comparison of Port Infrastructure Quality Index of India with Other Countries of India with Index Quality Infrastructure Comparison of Port 4-2] [Figure 174 Skill Enhancement to Improve Port Operations in India 1.3. Significance from the Viewpoint of Sagarmala Program

The vision of Sagarmala program is to reduce logistics costs and time to achieve efficiency in transportation export, import and domestic freight. Further, the program is also considering a step-by-step approach to the project in the future to improve the capabilities of related industries neighboring with ports near the cost. In this regard, it is feasible to identify India’s policy to introduce the concept of CEZ (Coastal Economic Zones), CEU (Costal Economic Units), the Port-Linked Industrial & Maritime Clusters, and Smart Industrial Port Cities. (India Ministry of Shipping)

CEZs refer to spatial economic regions comprising of a group of coastal districts or districts with a strong linkage amongst ports in the region, and are envisaged to tap synergies with the planned industrial corridor projects41. CEUs refer to specific industrial complex projects attracting industrial clusters and projects specified within a CEZ. Each CEZ consist multiple CEUs, and more than one industrial cluster can be housed within a CEU. Within each industrial cluster, there can be several manufacturing units. To accelerate the CEU development process, it is proposed that CEUs be prioritized in locations where lands are available in areas close to a deep 175 draught port and with strong potential for manufacturing. CHAPTER

The directionality of port development in India can be considered as a development 04 Policy Implications for Training of Skilled Workers to Advance the Port of India strategy that is in pursuit of compressed growth similar to the economic development plan in Korea in the 1960s and 70s. However, in India, Sagarmala program pursues development that leaps from the primary industrial environment to the secondary and tertiary industrial environments by developing strategic port critical sites along the V-shaped coastline along the V-shaped coastline and surrounding areas as industrial complexes. You can see that it is included in the program. Therefore, in order to successfully implement the port-led economic growth policy aimed by the Indian government, not only the weak secondary industries will be improved or fostered through the balanced development of the national territory, but also the linkage of the transport logistics system between the poor regions of India with a low urbanization rate. It is important to prioritize efforts to expand investment in port infrastructure, including social overhead capital such as roads and railroads, and to increase the operational capabilities of port personnel in order to solve the problem.

The scale and the level of advancement of a country’s logistics infrastructure directly affect the productivity in the country’s manufacturing sector. In particular, the port is at the

41 The Modi administration is pursuing its 5 major industrial corridor projects for promoting balanced development for regions, as well as vitalizing manufacturing industry by connecting major cities in India. The plan aims to build the total of 100 smart cities neighboring with the 5 major industrial corridors, starting with 20 smart cities in its initial phase. (Issue No. 50, 2018, Institute of International Trade of Korea International Association) Policy Implication from Korea’s Experience Korea’s Policy Implication from However, comparative analysis between India and Korea faced limitations due to In order to derive policy recommendations for fostering of port skilled workers in India, for fostering of port skilled workers In order to derive policy recommendations COVID-19 pandemic. Against this backdrop, the research pursues to demand and supply the research pursues to demand and supply this backdrop, pandemic. Against COVID-19 in port skilled workers and current system of training in general of port skilled workers propose policy India, based on data and materials provided from India, and to derive and in India, based on the experience and recommendation for fostering of port skilled workers cases of policy implementation of Korea. management system between Korea and India needs to be preceded based on the case of needs to be preceded based on the case of and India management system between Korea 3. as summarized and presented in Chapter Korea the pandemic with linked data essential lack of or data baseline collecting in challenges training by analyzing characteristics of technologies and functions required by industrial industrial of technologies and functions required by analyzing characteristics by training of ports and the differences between India and sites according to development trend and thus, to derive and present detailed policy tasks other countries based on case studies, the purpose to meet in order particular, In workers. port skilled nurturing for necessary of the port and technical manpower analysis comparative a horizontal of this KSP study, 2. System to Foster Port Workforce in India and in India and Workforce 2. System to Foster Port and through education to foster port skilled workers it is essential to understand needs competitiveness because, geographically, the country has a 7,500 km long coastline and is is and coastline km long has a 7,500 country the geographically, competitiveness because, in the Indian Ocean. route trade major sea-based located along the world’s industrial productivity. Therefore, the Sagarmala development policy, which aims to link which aims to link development policy, Therefore, the Sagarmala industrial productivity. is a highly logistics infrastructure, development to the expansion of the balanced national port industry is these comprehensive policies, the attempt. In implementing desirable development. infrastructure national of level and scale the determining of center the at improve its national to dramatically can be a means for India Moreover, port advancement height of land and sea logistics that revitalizes the supply and demand for raw materials materials demand for raw the supply and that revitalizes land and sea logistics height of domestic demand to increase in India” strategy “Make India has the trade. and international must these goals, India In achieving industry. the manufacturing revitalizing by and exports improve the national infrastructure industry first. The weak logistics infrastructure leads to inefficiency of the national logistics system and increases logistics costs,thus impairing 176 Skill Enhancement to Improve Port Operations in India 2.1. Demand and Supply of Port Skilled Workers in India

The majority of port skilled workers in India who worked many years are presumed to be engaged mainly in the operation of conventional equipment for the past ten (10) years. However, with mechanization and automation of facilities and equipment, as part of port advancement policy of the Indian government, port skilled workers who have previously been operating conventional equipment will face changes of working environment that demand adaptation to changes in ports and further, professional skills that are relevant to automated equipment and digital platform essential for efficient task performance.

NSDC (National Skill Development Corporation), a state-run company under MSDE (Ministry of Skill Development & Entrepreneurship), reports42 that 80,000 jobs are generated at IDC (Inland Container Depot) and CFS (Container Freight Station), while approximately one thousand 1,000 jobs in inland waterways sector, approximately 120,000 jobs in export and import logistics sector, and approximately 384,000 jobs in warehousing sector. Today, India shows its tendency of growth in employment in port logistics sector at about 20% every year with active commercial activities in overall and rapid growth of export and import 177 volume. Further, land transportation sector offers 484,000 jobs, with some of which being CHAPTER engaged in freight transportation connecting ports and regional hubs. 04 Policy Implications for Training of Skilled Workers to Advance the Port of India General port workers in India are required to acquire commercial skills. Education and training in commercial skills and functions are designed to adequately conduct transactions with independence, using digital business system. Technical level of Indian port skilled workers in general requires competence in operating essential equipment and achieve efficiency and productivity, based on skills in managing safety, security and environment and operating cargo handling equipment. Managers of port logistics are required to complete education and training courses to enhance management competence and skills for conducting tasks in new logistics environment.

LSC (Logistic Sector Skill Council in India) places its focus on providing training in port technology development to workers, and establishes plans on reinforcing network of criminal institutions to offer training on advanced industrial technology. Such plans are based on newly emerging demand. Needs for reinforcing competence and skills of skilled workers that India faces today may differ from the experience of Korea in adapting to changes in the port industry.

42 The reporting document is based on data provided by ADB in India (August 9th, 2020)

31, holds July in India established is , pursuing pursuing , 44 NSDC structure, established was 2013). in financial that Act MSDE the company Corporate of Within public 8 India. Article in limited to with an aim of establishing high-quality with an aim of establishing high-quality 43 Finance of non-profit, a (equivalent is Ministry 1956 in the by Act model Entrepreneurship) Corporate & of 25 partnership) Article Development with Skill of (public-private PPP accordance on (Ministry in India runs training centers based in Chennai, Kolkata and Mumbai to train port skilled skilled port train to Mumbai and Kolkata Chennai, in based centers training runs India India established its top-tier institution for technical training and workforce training, training, workforce and training technical for institution top-tier its established India 2.2. System of Fostering Port Workers in India Workers 2.2. System of Fostering Port However, However, skilled workers in India who have been providing labor with conventional Korea has generally experienced changes in all ports that had already been developed in developed been already had that ports all in changes experienced generally has Korea 2008 based 51% of the share. while the private sector claims 49% of the share, technology development. policy surrounding industries and national to needs from of education and training relevance SSC (Sector Skill Council) plays its crucial role in the ecosystem of technology development in India, with its mission of identifying in India, with development of technology in the ecosystem crucial role its Council) plays SSC (Sector Skill NSDC 43 44 different goals of individual industries, and LSC (Logistic Sector Council) is one of them. workers, providing the most essential courses in fostering skills and functions, with LSC, partnership. NSDC serves as a catalyst for technology development by funding companies funding companies for technology development by catalyst as a serves NSDC partnership. developing in assists organization The training. technology provide that organizations and and coordinate private sector initiatives. NSDC, appropriate models to enhance, support sectors 21 in (SSCs) Councils Skill Sector of consisted is authority, its under NSDC (National Skill Development Corporation) vocational training institution and promoting national technology development and profit and information assurance promote quality to NSDC is the mission of Further, generation. either directly or through trainers educate and train systems-focused support systems and be anticipated. Hence it will be essential for the Indian government to pursue policy measures in that would respond to such changes. fostering port skilled workers directly towards semi-automation and full automation, rather than undergoing beginning and and than undergoing beginning and full automation, rather directly towards semi-automation to needs for globalization and of mechanization, in the process of responding intermediate stages in optimism with assessed be may changes Such faces. country the that ports of advancement but from a viewpoint of stabilization of employment, terms of pursuit of advancement of ports, can forced to losing job security, being skilled workers negative impact, such as incumbent port semi-automation and full automation. semi-automation and in working environment are now facing changes work labor-intensive equipment in relatively is shifting India words, other In mechanization. advanced highly to leaping environment the 1960s and 70s, from the early stages of mechanization (the emergence of machinery that of (the emergence of mechanization stages from the early and 70s, the 1960s reduce manual labor and replace human workforce in difficult and dangerous tasks) to the manage in which people environment (the working stages of mechanization intermediate to enable smooth operation of machinery and equipment), and then tofinally, transition to 178 Skill Enhancement to Improve Port Operations in India the technical committee in logistics sector that oversee, evaluate and certify operations, located in Chennai. Through partnership with partner institutions including central, state and private universities, LSC operates education and training programs to train workforce in related logistics sectors. LSC programs are known to be running in key states in India including Andhra Pradesh, Gujarat, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra NCR Delhi, Odisha, Punjab, Tamil Nadu, Telangana and Uttar Pradesh.

However, while LSC is an organization designed to specialize in training operating workforce of the overall logistics industry or managing workforce of the related industry, while it is a not focused on training technical workforce that provide manual labor to enable seamless loading and unloading import and export volume within the port, and technical workers specialized in operating equipment and machinery for automated and mechanized tasks. In other words, unlike Korea Port Logistics High School, LSC is less than sufficient in displaying its expertise and characteristics as an institution specialized in education and training for capacity building of incumbent workers.

In parallel, India is offering specialized courses in international transportation and 179 logistics management, including UG (undergraduate degrees) and PG (post-graduate degrees) CHAPTER in maritime engineering at Kolkata campus of Indian Maritime University (IMU)45, and 04 supports in development of diverse technology for maritime logistics. IMU offers academic Policy Implications for Training of Skilled Workers to Advance the Port of India courses and curriculum including undergraduate, graduate and MBA programs. Hence the institution does not train skilled workers with various demands from activities in ports but offers education and training that support management of intermediate or higher levels and trains technical workers in a vertical workforce structure essential for professional management or port operation.

As mentioned above, the education and training system of port skilled workers in India is pivoting around NSD and LSC, yet the legal system and education and training system for formal education of port skilled workers are evaluated to be insufficient.

2.3. Policy Implications of Fostering Port Skilled Workers in Korea

Korea began to recognize the importance of fostering port workers at the national level in the mid-1980s. The basis has undergone the process of establishment of an institution

45 IMU (Indian Maritime University) is one of the prestigious universities in India that offers diverse curriculum in maritime studies spanning from maritime law to history, and also to practical topics including maritime search, rescue and transportation. The uni- versity was established in November 14, 2008 in accordance with Indian Maritime University Act 2008. IMU claims its jurisdiction in managing and operating campuses in India nationwide, with the main campus located in Chennai. IMU has the total of 6 campuses – in Chennai, Kochi, Kolkata, Mumbai Port, Navi Mumbai and Vishakhapatnam – in India. (Source: https://collegedunia.com/univer- sity /25882-Indian-maritime-university-imu-chennai/courses-fee) From the perspective based on achievement in policy approach that successfully responded in policy approach on achievement based the perspective From In the time of infinite competition on the international stage, the supply and demand the international stage, the supply and demand In the time of infinite competition on responding to global trend and changes by offering training in essential skills and functions for who complete their regular skill levels even after the workers courses by with adequate workers with their curriculum related with maritime and port industries and miscellaneous industries basic knowledge and skills join the workforce in port industries. in meeting demand for port skilled workers and operation of education and training programs programs of education and training and operation in meeting demand for port skilled workers only institution Institute is the Port Training here are the implications: first, Korea in Korea, that would be relevant to characters skilled workers that has highly been specialized in training proactively from praised highly is institution the further, and industries, logistics port of opportunity to recognize the importance of port personnel, and it was understood earlier of port personnel, and it was understood earlier opportunity to recognize the importance professionals and functional personnel should that demand for port industry-related to complexes port as such software build to need the recognizing expanded, greatly be of ports. maximize the function and efficiency but also strategic infrastructure for high value-added production activities and trade activities and trade for high value-added production infrastructure but also strategic % of Korea’s that handles 90 logistics infrastructure Ports, in particular, are key transactions. most basic growth engine for the nation and regional export-import cargo and provides the of the hardware on ports with the characteristics economic development. The reliance has served as an which is also a major national social overhead capital facility, industry, ports can be thus emphasized as a bridgehead for making foothold in the global market bridgehead for making foothold in the global market ports can be thus emphasized as a to due countries most in imports and exports of 90% for account ports as oceans, through various means of transportation accessible by their location and functional convenience, ports are not only serving as hubs for transportation connecting land and oceans. Therefore, efficient operation of Korean ports, as well as improvement in quantitative aspects of human as well as improvement in quantitative Korean ports, of efficient operation and port safety. port loading and transportation, resources in port operations, and importance of for national economy, of logistics through ports build foundations Institute) in September 1990, which led to the emergence of specialized education and of specialized education and 1990, which led to the emergence Institute) in September of curricula in and development in Korea, workers port skilled courses in training training port strengthen expertise of Korean of high schools and universities to the regular courses contributed to economic has these skilled workers The widespread participation of workers. development of Korea, which has led export-driven economic growth through efficient and for the implementation of education and training based on policy efforts and practical and practical based on policy efforts education and training of for the implementation 1985. order in February the presidential of it under systematic management needs and With establishment of the Korea Port Technology Training Institute in April 1989, the in June Institute) opened Training the Incheon Port Center (currently Training Incheon Port Training Institute (currently the Busan the Busan Training opening of 1989, followed by 180 Skill Enhancement to Improve Port Operations in India Second, Korea Port Training Institute, which preemptively train adequate human resource to respond to needs generated from the global logistics environment that faces diversification in functional needs surrounding cargo being handled and fluctuations in scale of logistics, has revealed to have functioned proportionately to comprehensive functionality of the ports by conducting relevant research activities on changes in ports industries and global trend. In addition, Korea Training Institute has fulfilled its roles in resolving social issues such as insecurity in employment caused by reduction of workforce following mechanization while accurately analyzing supply and demand of human resource by sector, maintaining the proper quantity and quality of skilled workers and the balance of workforce in the industry. Thus, the institute is appraised to have contributed to stabilization of labor market.

Third, by formulating customized education and training programs relevant to characters of tasks in ports and key cargo being handled in different regions, Korea Port Training Institute maximized effectiveness of education and training. Further, development of demand-centered curriculum that enabled open-minded policy by offering training programs that prioritized target customers has built a foundation for securing capacity in 181 responding to diverse demand from all the ports in Korea nationwide. CHAPTER 04 The policy implications to nurture port skilled workers in India based on experiences Policy Implications for Training of Skilled Workers to Advance the Port of India and cases of Korea to nurture port skilled workers and to enhance their capability are summarized as follows.

Policy Implication for Fostering of Port Skilled Workers in India

Areas for Reinforcing Skills Experience of Korea and Implications for India and Capacity

• According to Article 27-3 of the Harbor Transport Business Act, Korea mandated education and training for workforce in harbor transportation and related industries that education and training courses are offered for all newcomers Establishing legal and and incumbent port skilled workers systematic foundation and • For ensuring legal foundation for establishment of Korea Port Training Institute, funding for operation to an institution with focus on fostering skilled port workworn, and stability in enable fostering human funding budget for operating the institute, a system of mandatory deduction resource in port logistics from cargo charge has been introduced. • Korea Port Logistics High School (Meister Course) has attracted qualified and promising young talents by securing fund for granting all students with scholarship, by partnering with local governments and academia.

• In accordance with Article 27-3 of the Harbor Transport Business Act, Korea Establishment of education Port Training Institute was established (Incheon in 1989 and Busan in 1990), and training institution an institution specializing in legally mandatory education and training specialized in fostering global for workforce in port transportation and related industries to streamline, level port skilled workers standardize and systemize education and training system Experience of Korea and Implications for India and Implications of Korea Experience Reinforcement Reinforcement of compatibility of education and training with certificates in and testing system with connection with issuance of professional certificates Human Resources Development of Korea logistics knowledge and Development of curriculum to reinforce port in connection with educational management capabilities of mid-level managers of junior colleges functions and training facilities and general Improvement of utilization of educational training education entrusted conducting by results training educational of availability for enterprises order for adequate talents to Providing information relevant to job search in promoting and sharing relevant information have accessibility to information by work environment and on recent trend of port mechanization/automation, of port logistics. characteristics logistics industry to ensure potential in employment in the related area. potential in employment logistics industry to ensure Establishment of Korea Port Logistics High School to specialize the 3-year high in (Port Gwangyang) and acquisition of certification school course in locality of the and engineering to thus, lead to standardization areas related with port to other vocational training spread excellent practices curriculum and share and high schools. curriculum, measures of education and training of improvement Systemization responding to fast changing trend of port logistics high quality courses and training Development of education and training response to emergence of new jobs, including automobile resources in training exports, regularization of shipping technicians due to increase in automobile environment, and training safety education due to enhanced safety of port of logistics and transportation of automation engineers due to automation machinery The training institute is designed to train users to share knowledge in efficient in efficient knowledge to share users train to designed institute is training The for and training as providing education management, as well human resource and further, serves its role as educating workers, newcomers and incumbent Institute, Port Korea at researchers companies, at cargo educators and training institutions and trainers educators at higher educational (engineering high schools courses at vocational training Establishment of regular and engineering relevant to port talents for office job and commercial) to train • • • • • • • • • logistics. industry and Capacity related industries education courses Multiple resources collected and edited by the authors by collected and edited Multiple resources :  surrounding functions information center for Workers and training institution and training Establishment of system While India has currently secured its foundation for education and training at 3.1. Policy Direction for Fostering of Port Skilled Workers in India in Workers Skilled Port of Fostering for Direction Policy 3.1. conjunction with various and training programs in programs and training and technology that meet level port skilled workers Operation of employment of employment Operation Development of education characterization of regular characterization Establishment of education Establishment demands from port logistics professional workers in port professional workers Promoting specialization and Promoting specialization specialized in fostering global specialized in fostering global Areas for Reinforcing Skills Areas for Reinforcing university-level in maritime engineering and shipping and port logistics, the country has the country has university-level in maritime engineering and shipping and port logistics, in specialized institutions training and education established to have not identified been 3. Policy Suggestion for Fostering of Port Skilled 3. Policy Suggestion for Fostering of Port Skilled Source 182 Skill Enhancement to Improve Port Operations in India • Restructuring the current school system to provide opportunities in education and training in specialized ports and related areas in higher education (high school) courses • Establishment of institution offering re-education and continuous education for workers in charge of operating mechanized and automated equipment in parts or incumbent port workers • Fostering port skilled workers, differentiated from maritime logistics sector, by establishing training courses in universities to educate trainers in port management and skill and capacity training

skilled engineers and professionals in ports. And furthermore, legal foundations for such institutions are limited. Since India is undergoing its early stage of advancement of ports, full automation or semi-automation has not yet been implemented across all ports in India, subdivision of technical job position is still under the process, and skill and capacity level of the workforce in the industries is not yet consistent that skills and capacities of port workers are identified to be underqualified. Even if education and training of professionals and experts in intermediate and advanced level are active, efforts in enhancing overall efficiency of ports operation will face limitations if the skilled workers are not seamlessly performing their on-site tasks at ports.

For resolving such issues, therefore, it is demanded to reinforce the current system of educating and training experts and professionals in logistics experts related to shipping and ports in India, while establishing a specialized educational institution to train skilled Measures for Fostering Port Skilled Workers in India workers at entry level (high school courses) and re-education of incumbent port workers in connection with the advanced school system operated by India. It is necessary to recognize that the training of port functional personnel is not an area included in the training process of experts needed in the shipping and port logistics sectors, but a fully independent 183 human resources development system that is fostered through an independent education CHAPTER and training course that trains skilled workforce specialized in the demand for services 04

generated in ports. Policy Implications for Training of Skilled Workers to Advance the Port of India

Based on the experience of Korea, recommendation can be made on establishment of an education and training system with the following figure:

[Figure 4-3] Measures for Reinforcing Capacity of Fostering Port Skilled Workers in India

Limitation in Fostering Talents in Logistics Sector Measures for Fostering Port Skilled Workers in India in India

• Restructuring the current school system to provide • There is no training institution relevant to characteristics opportunities in education and training in specialized of jobs and tasks in ports. ports and related areas in higher education (high school) courses • Port skilled workers with more than 10 years of experience have difficulties in adapting to changing • Establishment of institution offering re-education environment in ports. and continuous education for workers in charge of operating mechanized and automated equipment in • Universities train talents in maritime and logistics, yet parts or incumbent port workers they have not established a system specialized in the port sector • Fostering port skilled workers, differentiated from maritime logistics sector, by establishing training courses in universities to educate trainers in port management and skill and capacity training in the world th around the globe in Port Infrastructure Port Infrastructure around the globe in th in Asia and 11 th . It can be concluded that Korea has ensured its competitiveness ensured its competitiveness has that Korea . It can be concluded 46 for Nurturing of Port Skilled Workers in India Workers for Nurturing of Port Skilled 3.2. Improvement of System and Establishment of Infrastructure Infrastructure of System and Establishment of 3.2. Improvement an institutional development of human resource in the port logistics sector, For In the process of Sagarmala program, India is pursuing balanced development amongst India is In the process of Sagarmala program, In order to implement the improvement measures indicated above, the Indian Indian above, the indicated measures improvement to implement the In order Port Infrastructure Quality Index, 2020, WEF (World Economic Forum) 2020, WEF (World Quality Index, Port Infrastructure

human resources, and secure teaching resources and operating personnel to execute and personnel to execute and human resources, and secure teaching resources and operating manage education and training. 46 implement firm and effective policies to eliminate the causes of inefficient fields in the fields in the implement firm and effective policies to eliminate the causes of inefficient of performance the inducing time at the same process while resources development human ministry in a developmental direction. In addition, the responsible education and training implementation institution that can coordinate shall establish an educational and training and pool the needs of various stakeholders who are direct beneficiaries of the training of policy direction in order to foster workforce suitable for demand-based sites in the future future the in sites demand-based for suitable workforce foster to order in direction policy at an appropriate amid initiatives to build new and realize timeless supply and demand entire land and create maritime-oriented in India’s ports and improve infrastructure opportunities. To this end, the Indian government should first overhaul relevant laws and foundation should be established to support the government’s policy of solidifying its policy of solidifying its support the government’s foundation should be established to regions by achieving port-led economic growth and balanced national development. In In development. national balanced and growth economic port-led achieving by regions sustainable the lead to and infrastructure port advanced of realization the enable to order development and sustainable growth engine, it is inevitable to improve the efficiency of port fostering and supplying skilled port workers. by operation Quality Index by WEF of 12 and ranking to its GDP ($ 162.655 billion) in ports that is proportionate 20, 2020), and is thus seeing its adequate achievement. Feb. IMF, in GDP, (ranking time, to provide education and training for port workers who needed to adapt quickly to quickly to who needed to adapt port workers for and training time, to provide education Port of Korea establishment by work and working environment. Driven changing port cargo ports in Korea Busan and Incheon, pivotal ports of the country, Institute in then the Training highly-skilled attracting for foundation secured thus and ports hub global to growth made 4 resulting in ranking port workers, government government first needs its policy perception. In case ofKorea, for promoting efficiency in growth economic thus promote export-driven cargo in ports to export and import handling automate to mechanize and was enacted Institute Training Port Korean in the mid-1980s, while at the same port operation, and manpower-dependent the existing labor-intensive 184 Skill Enhancement to Improve Port Operations in India The key mission of an education and training institution is to identify trend shift in fast- changing port industries, provide education and training programs that are in line with the global standard and levels, and develop practical curriculum that can proactively respond to demands from the field.

[Figure 4-4] Concept to Improve the System to Nurture Port Skilled Workers and to Introduce Education and Training Infrastructure

Establishment of Reinforcement in Realignment of Development of Law & System Education & Training Institution Updated Curriculum

Feedback reflecting both qualitative & quantitative demands from businesses/industries

India is estimated to have secured a total of approximately 80,000 skilled workers 185 by region and ports. By state, each of Maharashtra (Mumbai and its neighboring areas), CHAPTER Gujarat (Mundra, Kandla, Pipavav and Hazira) respectively has approximately 25,000 skilled workers working, while approximately 18,000 workers in Tamilnadu (Chennai and 04 Policy Implications for Training of Skilled Workers to Advance the Port of India Tuticorin), approximately 3,000 workers in each of Kolkata and Cochin, and approximately 2,000 in Andhra Pradesh (Vishakhapatnam and Krishnapatnam), Odisha (Paradip) and Karnataka (New Mangalore). On the other hand, since terminal operators are outsourced with skilled workforce from various organizations that it is challenging to formulate highly- sophisticated statistics, yet the size of the workforce is currently reaching a significant level.47 By improving quantity and quality of supply of human resource through this kind of re-education and capacity building of incumbent human resource, productivity will not only be enhanced in the short term, but proactive measures can be taken to the fast-changing port industries in India in the long term.

In practice, Korea has enabled to accumulate its experience in fostering port skilled workers through its step-by-step development process in the mid-1980s for advancement and development, and at the same time, enhance efficiency of ports that were insufficiently developed throughout the process of economic development during the 1960s and 1970s. Korea’s measures of fostering port skilled workers, in particular, have been innovative in that they secured funds for education and training institution (Korea Port Training Institute)

47 Data provided by ADB in India

the Port jointly the are 48 of to reflect Results 1986 increase companies, rights for the union workers in supply of port labor Establishment of protective system who for workers lost their jobs due to mechanization Education and for training incumbent skilled port workers talents Fostering skilled for training workers Founding secondary educational institution specialized in fostering skilled port workers Formulation of Formulation a national level union worker Securing exclusive ------in July ------wage

handling scheduled cargo made decision the and of part union Institute Training reflecting shipping by secured companies, is Port Korea words, Key measures Key shipping Institute Training including In other charge. Port training, Korea Education and training on cutting-edge technologies in the port industry to respond to mechanization and modernization of of industry to respond to mechanization and modernization the port industry Vocational education and training to foster port skilled workers to foster port skilled workers education and training Vocational Conversion of the labor union’s industrial system into system industrial system into system Conversion of the labor union’s for individual companies (labor union at local level)  Enhancing productivity of the port industry and promoting of port unemployment preventing security by employment workers Recover the interests practical of and workers strengthen labor- management cooperation

 port cargo of Incheon) opened in June 1989, followed by Busan Training Training Busan by followed 1989, June in opened Incheon) Institute Busan) in Port Training Institute (currently Korea September 1990. Institute Training Port Korea of incorporation special 2004, In under the Harbor Transport Business Act (Article 27-3 of the Business Act) Harbor Transport In February 1985, Korea Port Authority operated Department of Department of operated Port Authority 1985, Korea In February Education and Training Business under the presidential order to at ports experts and professionals train for established was Institute Training Port Korea 1989, April In following goals: Institute Port Training Institute (currently Korea Incheon Training With the end of the Korean War in 1953, the 4 major labor acts, Settlement Union of including Act, Labor Trade Labor Dispute Act, Labor Standards At Relations Commission Act, union labor democratic and autonomous for rights 1961, In Measures Temporary promulgating by ensured were activities for Workers’ Group Activities Act and Registration of Social Organizations Act were workers In 1970, conditions and treatment for port union of port improved through formation of a single national workers for streamlining In 1980, the government issued the guideline financial ensure and leaders union of trust restore to union labor transparency ▲ ▲ and ▲ ▲ ▲ • • • • • • • • of Korea Port Training Institute in the cost of port cargo charge in accordance with the principle that the actual in accordance charge port cargo cost of Institute in the Port Training of Korea budget education of Korea’s Experience in Fostering of Port Skilled Workers and Capacity Building by and Capacity Building by of Port Skilled Workers Experience in Fostering Korea’s Phase resources operational of building Legal and institutional arrangement Union members in Workers financial beneficiaries of mechanization of port with the level in accordance expenses, for collecting education and training funding the cost. Standards for special loading, 0.5% charges loading, 1% of the on-board for general charges work, stipulates that 0.5% of the on-board cargo loading charges. for the Busan Port container dock, and 0.3% of the on-shore of the basic charges Establishment of 70% Phases of capacity education & training 48 by by applying the financing ratio to cargo charge applied by Port Transportation Workers which had been Union, Workers activities of Port Transportation well as realigning Union, as conflict. labor-management resolving the and in parallel, across the country scattered 4-2> 

• In 2007, founding of Korea Port Logistics Highschool, with courses operation and maintenance of port equipment, electronic and electrical engineering, and mechanical engineering under the engineering department. The secondary educational institution is Establishment of designed to train promising talents for acquisition of certification education & training in diverse areas including forklift operation, container crane operation, ceiling crane, electronic engineering, welding during their school years. • The secondary educational institution is jointly funded by local governments, and local businesses in port-related businesses.

• In 2002, Korea Port Training Institute introduced a college -- Development program with focus on “port logistics” commissioned by related and operation businesses (jointly opened with Inha Technical College) of education • In 2007, Korea Port Training Institute opened a regular university and training program, “International Trade Department” commissioned by courses including Reinforcement in related businesses (jointly operated with Chungwoon University) courses for new development of • In 2010, Korea Port Training Institute was designed as a training and incumbent updated curriculum institution for development of vocational skills and capabilities workers, relevant to industry of foreign workforce (Human Resources Development Service of continued trend Korea) education, IT, • Recently, in order to secure international competitiveness of safety, circuit future ports in the 21st century and establish a comprehensive education on port education service system proportionate to advanced ports, port safety, and 187 the Korean government has executed a plan to elevate Korea Port customized CHAPTER Training Institute into a technical college special course. 04 Policy Implications for Training of Skilled Workers to Advance the Port of India Korea Port Training Institute first started with re-training skilled workers, mostly members of Port Transportation Workers Union who were working at ports, and has been able to grow into an education and training institute that respond to a variety of demand from the port transportation sector, with experience and updates to reflect recent industry trend and offer diverse courses, and co-development of curriculum with Human Resource Development Service of Korea as a training institution that develop vocational skills for foreign workers in the port logistics sector.

Setting the experiences of Korea as a benchmark, for nurturing of port skilled workers in India, the courses to re-train skilled workers based on most urgent needs discovered through investigations to review the level of technology and function of incumbent employees could be operated, and the education and training development conducted by Korea Port Training Institute could be a model for the country. Since Korea has experienced diverse policy attempts and trials and errors for supplying skilled workers in the port industries that undergo fast-paced changes accelerated by mechanization and automation, the country will be capable of offering case studies that would be essential in the process of supply and demand of human resources that India is likely to experience in the future. Responsibilities Projects related with operation of FTA Implementation Support Center (Ministry of of (Ministry Center Support Implementation FTA of operation with related Projects Maritime Affairs and Fisheries) Research and study on global logistics and multi-modal transportation related with maritime and port industries and abroad and research Joint research activities with related agencies from Korea and abroad, and private government, public agencies from Korea commissioned by organizations. Collecting, analyzing and sharing information and trend surrounding maritime, fisheries and abroad and port industries in Korea Establishing database of research data from maritime, fisheries and port sectors from and abroad Korea Information exchange and gathering of opinions from industries, academia, research institutes and government agencies related with maritime industries through various seminars and open forum. Observation project on production, distribution and consumption of marine products (Ministry of Maritime Affairs and Fisheries) Research, study and consulting service on policy related with maritime, fisheries, shipping and port industries port and shipping fisheries, maritime, with related policy on study Comparative and overseas industries between Korea • • • • • • • • • and Port Logistics and Port Collecting Key Roles Key Execution of government- information on In case of Korea, each of government organizations with focus on different industries industries organizations with focus on different each of government In case of Korea, 3.3. LSC’s Expansion of Research Functions Related to Shipping to Shipping Related Functions Research Expansion of 3.3. LSC’s harmony sector needs adequate of the port logistic and development growth In parallel, consigned projects maritime industries Research and studies Cooperatives. Cooperatives. Maritime Institute Roles and Responsibilities of Korea 4-3> Key

• Fishery seed observation project (commissioned by Ministry of Maritime Affairs and Fisheries) Execution of • Overseas market analysis project (commissioned by Ministry of Maritime Affairs and government- Fisheries) consigned projects • Operation of an organization specialize in supporting Committee for Improvement of Quality of Rural Life and Fishing Villages (commissioned by Ministry of Maritime Affairs and Fisheries)

Source: ALIO, a system to publish management information of public institutions

Korea Maritime Institute was established as a government-funded research institute in accordance of the Act on the Establishment, Operation and Promotion of Government- funded Research Agencies (Act No. 14274)49 in order to comprehensively and systematically research and study development of shipping and port industries and to collect, analyze, distribute and utilize various trends and information with agility to contribute to policy formulation and growth and development of the national economy.

In case of India, with the Sagarmala program being promoted by the Indian government, a comprehensive approach will be necessary to enable synergy at national-level by 189 reviewing effectiveness of various policies formulated in the process of participation of CHAPTER individual ministries for port-led economic growth and analyzing impact on other related 04

industries. In this context, LSC of India will need cooperation with Korea Maritime Institute Policy Implications for Training of Skilled Workers to Advance the Port of India (KMI), and to continue efforts reinforcement of capacity in port policy, maritime policy, fishing policy, and intelligence and strategy in maritime, logistics and industry through partnership with KMI.50

49 The act aims to promote establishment of rational state-run research and studies structure and rationalization in management and improvement of state-funded research institutes, by prescribing basic elements concerning the establishment, support and foster- ing government-funded research institutes, and systematic and responsible management. 50 Data provided by ADB in India

- its includes econom http://www. continues that organizations. promote Korea, Korea to concept a (ODA as international aiming or countries. projects. defined be ODA member countries governments its can AC 29 thus, including developing and expanding among of by 51 25th agencies 2020, countries, by public ranking communities by ratio and 2018, developing of of provided as ODA/GNI aid in GNI to governments welfare of for 0.20% refers social 0.14% of offered for reaching of Assistance) accounts goal enhancement cooperation its ODA and Development technical Korea, achieving or of in (Official case development Skilled Port Workforce between Korea and India Korea between Port Workforce Skilled India and Korea may utilize ODA programs as part of a method of securing resources resources securing of method a of part as programs ODA utilize may Korea and India Since 2010, Korea has been actively participating in international development development actively participating in international has been Since 2010, Korea 4.1. Measures for Utilization of ODA 4.1. Measures ic funding In efforts odakorea.go.kr) ODA 51 for development essential for identifying relevant development cooperation programs for for programs cooperation development relevant identifying for essential development for the international pursuing prosperity of the two countries and resolving common issues of and fund that tangible outcome through implementation. The ODA society or generating Korea offers for resourceof development ofdeveloping countries in cooperation with the experience of Korea in building capacity in formulating development policy in the process of in building experience of Korea balanced national through development of economy economic development and growth and effective in approach for utilization of ODA. development. Such projects are deemed called ODA (Official Developmentcalled Assistance),ODA which includes funding, technical cooperation for governments of developing countries and and human resource exchange offered organizations. In case of India and Korea, activities of local communities and international for relations between India and Korea cooperative projects are implemented to strengthen relevant actions between the two countries, based on establish common goals and carry out countries. Recently, countries. it Recently, is perceived as an international development cooperation activity that pursue comprehensive partnership or “co-relationship” that emphasizes “cooperation” between developed countries and partner countries, than rather offering support, unilateral between two partnering countries or among multiple and aim for reaching common goals enable such international development cooperation partners. The financial support that have previously been executed by developed countries, including development assistance, including development assistance, developed countries, executed by have previously been foreign aid and overseas aid. The projects are today defined as comprehensive development gaps narrowing for cooperate to aim that society international the in activities cooperation developing countries, amongst developing countriesin development between developed and resolving social and economic issues of developing or within developing countries and cooperation projects as a member state of DAC (Development Assistance Committee) of OECD of Committee) Assistance (Development DAC of state member a as projects cooperation (Organization for Economic Cooperation and Development). The concept of international projects that cooperation has originated from development development cooperation 4. International Cooperation Plan for Fostering Plan for Fostering Cooperation 4. International 190 Skill Enhancement to Improve Port Operations in India international society include public funds, export credit, investment financing, foreign direct investment, private funding and support from NGOs and such may be categorized as following:

Types of Development Funding

Type of Support Detail

Grant, technical cooperation, project aid, food aid, emergency Grant relief, support for NGOs Official Development Assistance Loan Concessional loan

- Contributions to international organizations and investment

Loan Public export credit, investment financing Other Official Flows Loan Loan from international organizations

Private Flows at Market Foreign direct investment, export credit of over 1 year, loan Loan Terms from international organizations, securities investment

Net Grants by NGO Grant Grant from NGO

Source: KOICA, ODA Korea, KOICA, re-siting from http://www.odakorea.go.kr 191 CHAPTER Between India and Korea, no form of loan offered for development fund, whereas

the majority of them are concessional loan, which consist of consultations between the 04 countries. By signing a basic agreement for EDCF (Economic Development Cooperation Policy Implications for Training of Skilled Workers to Advance the Port of India Fund)52 in at the 5th India-Korea Finance Ministers’ Meeting in 2017, the two countries laid the groundwork for promoting EDCF cooperation projects.53 India had previously limited its partnership for ODA to the G8 and EU member states, but the Finance Ministers’ Meeting in 2017 expanded the relations between India and Korea into ODA partnership.

Utilizing EDCF and technological competence of the Korean companies, relations between the countries has been fortified in non-economic areas, as well as economic cooperation, securing the basis for active participation in building economic and social infrastructure in India. Further, by signing an MoU for financial cooperation in infrastructure between EXIM banks of the two countries, an official cooperative structure for support in infrastructure development has been formulated between the two countries, and thus, agreement has been reached on official cooperative system for in method of financial support and identification of target projects for India-Korea infrastructure-related projects.

52 The Economic Development Cooperation Fund (EDCF) is dedicated to paid aid from ODA funds, and EDCF was established in 1987 and is a policy fund established within the Export-Import Bank of Korea to support industrialization and economic development of developing countries and to promote economic exchanges between Korea and these countries. The deliberation of the fund policy will be conducted by the Foreign Economic Cooperation Fund Management Committee, and the Export and Import Bank of Korea (KEXIM), commissioned by the Ministry of Strategy and Finance, will be in charge of the management. 53 Ministry of Strategy and Finance Press Release (June 14, 2017)

to effect South resources 55 into taken was CEPA and President Moon Jae-in Moon Jae-in President 54 partnership” by utilizing Knowledge Sharing utilizing Knowledge Sharing by 57 strategic “special to and signed MoUs in various fields. 56 elevated was relation the 2010, in India to visit state Economic Development the In pursuit of cooperation with India, Korea has proposed developing a capacity has proposed developing a capacity with India, Korea In pursuit of cooperation 4.2. Utilization of Knowledge Sharing Program (KSP) for Sharing Program 4.2. Utilization of Knowledge With With such long-term plan formulated through diplomatic agreements between the two The two countries discussed $10 billion (including EDCF amounting $ 1 billion) in In parallel, an analysis on relations between India and Korea in terms of performance terms of performance in and Korea between India on relations an analysis In parallel, expand and reinforce cooperation in international relations, economy, society and culture. economy, in international relations, cooperation and reinforce expand in India. Institute for International Trade under Korea International Trade Association International Trade under Korea Institute for International Trade of human fostering technical competence to promote the Indian government formulated by Skill India: policy measures in the state of Maharashtra Delhi and smart cities facility in New of a complex development proposed Korea During 54 55 56 57 building program to support India’s “Skill India” to support India’s building program economic general-level director a for agreed countries two The (KSP). Program cooperation promotion meeting between the financial authorities at least once a year agreement and an MoU between the EXIM banks of the two countries. agreement and an MoU between the EXIM can practically identify demand for projects and maximize potential of both countries to pursue identify demand for projects and can practically mutual benefits.Korea’s ODA may be utilized for infrastructure developmentin India through have established an from India, as India and Korea active business development and requests institutional basis for implementing a $ 10 billion financial packageby signing a bilateral basic state visit of Prime Minister Modi in Korea in 2015, the two countries agreed to elevate the in Korea state visit of Prime Minister Modi in partnership” relations to a “special strategic that program a sustainable and concrete cooperation countries, it would be important to develop financial support for infrastructure development as a candidate project for a financial financial a for project candidate a as development infrastructure support for financial package consisting of 1 billion dollars for EDCF and $9 billion for export financing. Korea’s Ministry of Economy and Finance is formulating its strategy to secure external including with emerging economies expanding economic cooperation growth engines by India, ASEAN and the Middle East. India is placed on a pivotal position, and during the with the neighboring four strongholds, and India is one of the key partners for the policy. for the policy. partners of the key four strongholds, and India is one with the neighboring This model cooperation is significant inexpansion of the scope of and cooperation exchange and personal exchange. cultural to technological, from commodity trade in trade exchange revealed that the trade volume had grown over forty years by over 1,300 over by years forty over grown had volume trade the that revealed exchange trade in 18.8 billion in 2012. in 1973 to USD USD 14.32 million times from in November 2017 Prosperity) at 3P (People, Peace, centered New Southern Policy, promoted to reinforce cooperation with ASEAN member states and India to the level of cooperation 192 Skill Enhancement to Improve Port Operations in India in order to proactively explore the agenda of economic cooperation between the two countries and manage it efficiently. The plan for implementation of KSP is based on the actual demand from India, and technology and knowledge accumulated by the ODA from Korea’s past experience in economic development makes positive contribution to the socioeconomic phenomenon in India and composition and growth characteristics of the industries today. Furthermore, based on past outcomes and achievements, it provides a basic understanding that can be applied extensively by government departments and experts from related sectors. In particular, in the case of India, various Korean companies have offered advice on boosting trade and investment in promising overseas industries in the project, which has been actively promoted by KOTRA since 2014 a joint general manager of KSP, and the foundation for strategic utilization of KSP in terms of economic cooperation has been established.

“Support in establishment of development strategy for organizations that India attracted (2017/18)” is one of the key cases in project execution of the two countries that India utilized KSP.58 The KSP project sought to offer advice to strengthen capacity of India in implementing Invest India by sharing Korea’s experience in its policy of Invest Korea. In other words, the 193 project has generated a successful case of proposing a development strategy that could meet CHAPTER India’s demand surrounding Invest India. 04 Policy Implications for Training of Skilled Workers to Advance the Port of India Meanwhile, “KSP-ADB Joint Consulting: Consulting on Strengthening Human Resources Technology to Improve Port Operations in India (2019/20)” is also a successful example of KOTRA’s use of KSP as a joint KSP general agency and as an economic cooperation project between India and Korea. The characteristic of this project is a triangular cooperation advisory project jointly promoted by international organizations, which is a three-way cooperation project jointly conducted by the three parties between ADB, KSP and India of partner countries, and is a three-way cooperation project involving international organizations.

Korea’s economic development experience-sharing project (KSP) is one of the top 10 national brand projects, and it is a program designed to transfer its economic development experience and know-how from the initial experience of national economic development that Korea began post-war recovery and economic development to the target countries, including developing countries, to the development of the world’s key industrial countries

58 This was part of 2017/18 KSP (Knowledge Sharing Program) for offering advice on policies related with industry and trade (supporting formulation of development strategy of the Indian organizations with roles and responsibilities in attracting investment), with par- ticipation of researchers including Jin-seop Jeong, Hwi-chang Moon, Byeong-hee Lee, Hyeong-gon Kang, Dong-hwa Oh, and Moon- yeon Yoon. The key topics are following: 1. Invest India Development Strategy; 2. Benchmarking Major IPAs Worldwide; 3. Capacity Upgrading and Invest India: Lessons from Invest India Contents of Action Economic areas such as establishing macroeconomic development plans, boosting industrial and exports policies and investment, and promoting trade Expanding projects to various areas including education, ICT, human resources, green growth and renewable energy Conducting research, consultation, and education and training programs on national policies, national policies, on programs and training and education consultation, research, Conducting laws and systems of partner countries and countries development of partner and social economic to sustainable Contributing the world pursuing common prosperity and stability around advisory project for implementation of joint research and consultation national policy Bilateral partner countries and its between Korea advisory project jointly promoted with international organization Triangular cooperation projects of partner countries through case Customized systemization and modularization experience in development studies of Korea’s • • • • • • • Goal Projects It is important to establish a proposal that first identifies the actual development needs The proven know-how through Korea’s development experience research and development experience research and The proven know-how through Korea’s To enhance the utilization of the KSP and to promote strategic cooperation between between cooperation promote strategic the utilization of the KSP and to enhance To Summary Project areas of the country and identifies the possibility and expected effects of commercializationof KSP using demand for successful projects utilization in order for the partner countries to raise has successfully implemented policies to attract private investment suitable for developing private investment suitable for has successfully implemented policies to attract promoting the establishment of support for the development of administrative countries by the using Organization” Promotion “Trade the as such institutions public of infrastructure KSP. of the partner countries, and the countries that conducted the KSP reflect the results of the as national policies. Vietnam, which was selected consultation and actually reflect them as the first KSP-focused support country in 2009, has established the “2011-2020Social and Economic Development a Strategy,” mid- and long-term policy of Vietnam by providing and Cambodia through the KSP, comprehensive consulting across the national economy professional human resources in related fields are organically combined to present related fields are organically combined to present professional human resources in demands and tasks policy top the meet that directions” policy and solutions “customized Korea and its partners through the establishment of joint projects and the achievement of of of joint projects and the achievement and its partners through the establishment Korea its sharing of direction ultimately Korea’s of summary a is following the growth, shared experience through the KSP. economic development of Implementation of KSP 4-5> Overview

Application Procedure of KSP

Steps Activities for Selection

Submission of 1 Project Proposal Partnering governmental agencies or organizations seeking to participate in projects submit project proposal to supervising government agencies of beneficiary countries, and these supervising agencies shall submit priority lists and official documents to the Korean embassies

Review & Conduct 2 Feasibility Study Experts and related agencies in Korea review project proposals and conduct feasibility studies including on-site survey to determine policy demand, project feasibility, expected results and risks factors in partner countries 195 CHAPTER

3 Project Selection 04

Ministry of Economy and Finance select projects by communicating with related Policy Implications for Training of Skilled Workers to Advance the Port of India agencies, based on results of feasibility studies.

4 Program Launch After selection of projects by Ministry of Economy and Finance, projects are to be executed by formulating project plans and selecting responsible agencies for implementation

Source: Ministry of Economy and Finance

In Korea, the Ministry of Economy and Finance, the governmental organization in charge of KSP, is planning to reinforce continuous relations with partner countries based on the achievements of the KSP projects, thanks to the positive results and positive reactions of the partner countries that have actually been shown in the partner countries that have implemented KSP. As a strategy to expand KSP in the future, we have established horizontal and comprehensive partnerships with partner countries to broadly reflect the needs of partner countries and provide support for KSP policy advice in connection with subsequent ODA projects. cultivating skilled port workforce in India workforce skilled port cultivating Through this process, by applying Korea’s accumulated experience in fostering of in fostering of accumulated experience applying Korea’s Through this process, by The change in the introduction of machinery to port operations was an essential was an essential machinery to port operations The change in the introduction of Back in the 1960s and 70s, the initial stage of economic development, Korea’s experience experience development, Korea’s 70s, the initial stage of economic Back in the 1960s and 4.3. International cooperation and implementation plan for plan and implementation cooperation 4.3. International port to foster India and Korea between cooperation measures of international As part of craftsmanship in the course of port-led economic growth in India and international international and India in growth economic port-led of course the in craftsmanship and India can be implemented. A summary of the alternatives is between Korea cooperation 4-7>. as summarized in the following

Measures for International Cooperation for Fostering of Port Skilled Workers in India

Measures of India-Korea Key Policies Implementation Measures Cooperation

• Establishing a detailed certificate system to identify the Joint research on demand for functional personnel required for the operation certification system through of port infrastructure in India from the perspective of education and training Introduction of industrial site demand and to meet the appropriate level of curriculum of Korea Port Programs for technology and functions. Training Institute and Certification • Establishing standards for issuing certificates and certification programs of Skilled Port establishing a testing system to evaluate appropriate of port skilled workers Workers technical competencies. of Human Resources • Selection of an institution responsible for the mandatory Development Service of legal regular training for the follow-up management of Korea certificates and the management thereof and re-education

• Development of general education and training courses and courses for each level including entry, intermediate Joint research on measures and advanced, and courses for incumbent workers, taking for improvement of general work and technical characteristics of individual education programs Establishment of ports in India. customized for port Basic Education • Characterizing curriculum by comprehensively verifying logistics industries in India, and Training ability of conventional education and training institutions to benchmarking curriculums Courses for Port conduct and manage education and training targeting skilled workforce Skilled Workers • Expand the field training by expanding the participation offered by Korea Port 197 of industries, and strengthen the field of education and Logistics High School and CHAPTER training by utilizing teaching capabilities of trainers and Korea Port Training Institute lecturers dispatched to companies or field practitioners in

each specialized field of businesses. 04 Policy Implications for Training of Skilled Workers to Advance the Port of India • Identifying the level of skills and capacities of employees Joint research on measures by analyzing demand in the Indian port logistics industry for improvement of and skills gap between demand side with requirements and education programs skills and capacities of skilled workers customized for port Establishment • Developing a re-training course by analyzing the gap in skills logistics industries in of Mandatory and capacities faced by skilled workers in the respective India, benchmarking Education for field and areas. mandatory education and Port Skilled • Analysis of gap in skills and capacities that global terminal training courses by law, Workers by Law operators in the ports in India face implementation process, • Developing curriculum that can improve the technical/ and training educators functional gap of the skilled workers and establishing a legal and trainers of Korea Port basis for legally mandating relevant education and training Training Institute.

• Improving curriculum of maritime and port-related colleges, universities, and graduate courses in India to strengthen the capacity to train mid-level managers. Exchange of students with • Developing professional degree programs to meet international universities in Korea with Development standards undergraduate and graduate of Academic • Developing long-term overseas training programs for faculty programs on maritime port Degrees Program members at Indian universities and long-term invitation logistics and joint research (Long-term) programs for professional faculty members from overseas for development of relevant • Establishment of degree courses and exchange student curriculum system for overseas study of university students related majoring port logistics in India Cooperation Measures of India-Korea India-Korea Measures of Joint study on establishing basic plans for fostering of in mid port skilled workers and long-term customized for India and cases of logistics sector in Korea and logistics sector in Korea cases of participation of business entities Planning projects and conducting research activities expert groups consisting of experts from India and Korea Joint study on legal system Port Training for Korea Institute, benchmarking scale and size of facilities and equipment, and sharing knowledge and expertise in management and operation Joint research on Joint research customizing short-term for programs training offered incumbent workers Port Training Korea by Institute to be relevant to India Joint research on joint Port Korea by programs port Institute and Training Implementation Measures Implementation training and training of port functional personnel based on functional personnel port of training and training and major local governments port clusters between central in India. system equipped Securing a regular education and training facilities and equipment to with education and training region, and an cope with the size of the port industry by secured has that infrastructure training and education teaching personnel. Conducting mid- to long-term survey of port skilled workers region/port characteristics by Conducting research on cases of advancement of ports around the globe and human resource development, and suitable for reconstructing relevant cases into programs India based on the results. identification of items for short- and long-term joint researchidentification of items for short- and long-term joint tasks to foreign countries related opinions from experts Gathering international exchange activities for joint and encouraging development of education and training. participate Securing human resource that can actually India and having a pool of relevant experts from both by and functionality by tasks and jobs subdividing by abroad, skills, based on demand from the field. Establishment of legal and institutional basis to secure specialized in the training programs education and training resources financial and personnel, technical port of specialized of operation and establishment the for necessary educational institutions. for institution dedicated a of Designation or establishment screening of functional personnel participating in short- screening of functional programs term training Establishment of an industry-academic cooperation system to changes in technologies that can immediately respond sector logistics port changing rapidly the in functions and of educational curriculum the running and designing in institutions. Establishment of a cooperative system of institutions and and industries with research capabilities to anticipate respond to real demand. Expanding a wide range of knowledge exchanges among academia and industry, experts through joint research by research and holding regular seminars. in port logistics in India and a pool of experts Forming Development of short-term collective training (less than one (less than training of short-term collective Development capacities of and skills to improve practical week) courses incumbent workers for mid-level programs training Development of overseas port logistics sector in the field workers managers and key institutions that manage Select specialized educational professional trainers courses and train short-term training the promotion and promotion Setting standards to reflect • • • • • • • • • • • • • • • term) System Experts Workers Academia Academia Committee of Training of Training of Advisory of Advisory of Industry- Cooperation Cooperation Formulation Formulation Consisting of of Institution Key Policies Key Development Specialized in of Port Skilled Fostering Port Fostering Establishment Establishment Skilled Workers Long-term Basic Establishment of Programs (Short- Programs Plan for Fostering Plan for Fostering Plans for Mid and 198 Skill Enhancement to Improve Port Operations in India Measures of India-Korea Key Policies Implementation Measures Cooperation

• Identification of complex demand for human resource that Korea by cooperating reflects the characteristics of individual ports by region and with Korea Port Training the characteristics of surrounding industries, aligning with Institute, Korea Maritime the national mid- to long-term development plan Institute, universities with • Securing education and training infrastructure and qualified undergraduate and graduate human resource for training and research courses on logistics

5. Review of Korea–India Joint Project

5.1. KSP’s policy in line with India’s port advancement

The Sagarmala Programme, promoted by the Indian government to make a breakthrough in the port industry, can be a policy turning point to revise the port industry– related laws and systems and improve training systems for the workforce necessary for port advancement. The port development policy has been used by developed countries to revitalize their economy in the process of trade globalization. However, Western hegemonic 199 CHAPTER countries’ port-led growth model, which has continued to grow after the First Industrial

Revolution, may not be appropriate for most late-coming economies that only began to focus 04 on economic development after World War II. Nevertheless, the case in which Korea, one Policy Implications for Training of Skilled Workers to Advance the Port of India of the least developed countries after World War II, successfully realized port-led economic growth during the past half-century can provide practical lessons to India’s policy to enhance national competitiveness through port advancement.

Port Modernization, Connectivity Enhancement, Port-Linked Industrialization, and Coastal Community Development, which are the main objectives of the Sagarmala Programme, indicate that port advancement is a crucial task. For the Indian economy, improving the national logistics system, including port advancement, is an inevitable option for its participation in changes in the global logistics environment. The port advancement policy is an example of a successful strategy in Korea, which selected the port industry as the footing to support the export-led industry in economic growth. Therefore, the KSP’s approach to compare and analyze the development of the Korean port industry with the current state of India will provide useful insights for the improvement of India’s state-led port advancement policy.

Currently, India is facing limitations. It cannot handle rapidly increasing international trade with its existing port infrastructure capabilities, and it lacks a port workforce, quantitatively and qualitatively. As such, now is the time to improve the workers Future port workers will no longer be workers who used to provide simple labor in who used to provide simple labor in be workers will no longer Future port workers In other words, it is highly likely that all logistics equipment in ports will be converted in ports will be converted that all logistics equipment In other words, it is highly likely 5.2. Future of port industry and development of skilled port of skilled of port industry and development 5.2. Future and export cargo, the port’s logistics hub that handles more than 90% of import As a key more and reduce the workforce by 70% compared to existing ports. more and reduce the workforce by even port a labor-intensive environment. Soon, automated port systems will replace managed in an integrated method. Moreover, drones’ widespread use will enable real-time method. Moreover, drones’ widespread use will enable real-time managed in an integrated facilities in ports. monitoring, inspection, repair, and surveillance of large equipment and United States, Singapore, the of so-called smart ports is emerging. The ports in the The era which are advanced port logistics countries, and new ports in Netherlands, and Germany, or 30% by China have adopted fully automated port logistics. It can improve productivity ports, and cybersecurity. of and status location The real-time in the future. devices self-driving to machine-learning, buildings, can be all port components, such as ships, people, cargo, vehicles, equipment, and These efforts have already appeared in the changed logistics system of most global terminal Industrial technologies, Fourth innovative adopting are extensively GTOs (GTO). operators autonomous driving logistics and logistics operations, such as robots and automation in port of facilities in and big data in the operation equipment, the Internet of things transportation status will not change in the future. With the spread of globalization, the port’s role will countries. hub between trade crucial most as the serve will ports and critical, more become reliance and logistics port for demand the prevalent, more becomes trade international As on the port industry will increase. Therefore, efforts must be made to improve the existing to address the port-reliance issue effectively. ports’ labor-intensive work environment logistics industry needs to be strengthened. Responding to the quantitative demand term, there is a need to In the long in the short term is necessary. for a port workforce which is increasingly mechanized changes in the port industry, adapt to technological and competencies managers’ port professional strengthening by automated, and a skilled port workforce. systematically cultivating efficiency of the national logistics system and the economic port contribution. industry’s However, the national logistics efficiencysystem’s is not attained only by improving the be improved based needs to Productivity industry. and the port logistics infrastructure advanced enhanced through which is environment, logistics industry’s on the port and the that manages the port industry In addition, the workforce infrastructure. 200 Skill Enhancement to Improve Port Operations in India professionals who operate mechanized ports. In this context, Korea’s case, in which a suitable port worker training system was established for a semiautomated port management system, can be a suitable study model in solving the port advancement challenges of India today. In the short term, India may respond to the quantitative demand for a port workforce and improve the skilled workforce’s quality by applying Korea’s experience to their pursuit of port advancement. Ultimately, however, both India and Korea will face the same challenge. They must fully automate their port operation systems. Shortly, both countries will have to develop new workforce training techniques suitable for fully automated port environments. As such, a cooperative relationship between India and Korea through the KSP is valuable in jointly building a new trend, a high-tech smart port.

5.3. Potential sectors under Korea–India KSP

The Korea–India KSP provides a practical platform for sharing knowledge based on theoretical research exchanges, finding common areas of interest to set a direction for cooperation and development, and discovering useful policies. The KSP can also go one step further from the policy proposal stage to discovering potential projects that can commence 201 immediately. Even when mutual visitation exchange is impossible because of unavoidable CHAPTER reasons, such as COVID-19, the two nations can find viable cooperation means. In particular, 04 based on the research outcomes obtained through the consultation, “Manpower/Technology Policy Implications for Training of Skilled Workers to Advance the Port of India Strengthening Plan for Improving Port Operation in India,” jointly executed by KSP–ADB in 2019/2020, it is possible to discover feasible KSP projects. This pragmatic approach is also in line with the Sagarmala Programme.

In addition, the following projects can be also be considered for sector-specific cooperation related to the advancement of Korean–Indian ports. First is a capacity- building program for instructors who plan training programs and train port workers in India. Developing a curriculum that reflects the latest trends is necessary to respond to the qualitative demand for skilled port workers. Besides this objective, it is also necessary to establish a ToT system to strengthen instructors’ capabilities. A qualification certification system must be established first to manage workers’ proficiency levels. For this endeavor, Indian researchers can first investigate India’s port worker training curricula and certification systems to realize the workforce training program. Meanwhile, Korean experts can present a development model based on Korea’s experience, contributing to India’s current system and performance. The model discovered through joint research can be reviewed to derive a localization model that reflects the Indian job market and the industry’s demands. These three cooperative projects under the Korea–India KSP should propose propose should KSP Korea–India the under projects cooperative three These Third and last, in the development of training courses through short-term and long- courses through short-term and the development of training Third and last, in Second, the KSP can be utilized to develop a master plan for constructing the Indian Port Indian Port the constructing for plan master a develop be utilized to KSP can the Second, Korea’s port advancement case, India can gather insights to prevent the same trials and and trials same prevent the to gather insights can India case, port advancement Korea’s port expediting in insights such of most the make and experienced had Korea errors than Korea. advancement much quicker comprehensive plans for port advancement, such as improving laws and systems to ensure comprehensive plans for port advancement, for infrastructure the establish will these result, a As workers. port skilled of supply the port skilled of capabilities technical the strengthen and institutions training professional which experience over the past half-century, In achieving these goals, Korea’s workers. resulted in the current port competitiveness, will be beneficial.By studying and analyzing contribute to strengthening port competitiveness by fostering skilled port workers equipped fostering skilled port workers by contribute to strengthening port competitiveness logistics port automated highly a for suitable technology and knowledge advanced with environment. and technicians for technical courses. For long-term training, courses can be developed in in courses can be developed training, long-term For and technicians for technical courses. universities to invite international students. The with technical colleges and cooperation actively for students would be valuable in that they programs academic exchange bilateral future demands. Furthermore, they will changing rapidly respond to the port industry’s term international cooperation, it is possible to discover an exchange program that fosters that fosters to discover an exchange program it is possible term international cooperation, actively responding to changing port environments. an advanced workforce capable of can be invited for management courses port managers short-term workforce training, For conduct cross-research to identify training programs for skilled port workers in India. In in India. In port workers for skilled programs to identify training conduct cross-research establish to models formulated the review jointly researchers Korean and Indian way, this and to build an IPTI infrastructure master plan. Deriving a plan an optimal and feasible policy government’s Indian the to contribute will training for plan action an presenting decision-making. Training Institute (IPTI). Through the Korea Port Training Institute (KPTI) Incheon Center, Center, Incheon (KPTI) Institute Training Port Korea the Through (IPTI). Institute Training plan suitable an IPTI master possible to propose researchers, it is Korean by established analyze the IPTI can researchers in India. Indian port workforce skilled a for developing can and Korea on the KPTI Incheon model. India based Korea by construction plan proposed 202 Skill Enhancement to Improve Port Operations in India Reference

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