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Inland Container Depot(ICD) in Korea: Focusing on Uiwang and Yangsan

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Inland Container Depot(ICD) in Korea: Focusing on Uiwang and Yangsan Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Inland Container Depot(ICD) in Korea: focusing on Uiwang and Yangsan 2017.9.18 Dr. PARK, Ju Dong Dr. JO, Ji Sung Dr. KIM, Geun Sub Port Policy Research Department Contents I Inland Container Depot(ICD) in Korea II Uiwang ICD III Yangsan ICD IV Dry Port Development in Asia-Pacific V Lessons and Learned 1 I. Inland Container Depot(ICD) in Korea 2 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia ICD in Korea 5 ICDs in Korea Metropolitan Area: Uiwang ICD Honam Area: Jangsung ICD Central Area: Sejong ICD Yeongnam Area: Chilgok ICD Busan Area: Yangsan ICD Source : Ministry of Land, Infrastructure and Transport(MOLIT), “Inland Logistics Hub in 5 Regions of Korea, 2016. 3 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia ICD in Korea Infrastructure of 5 ICDs Capacity Area Bulk Container CFS Size(㎡) (thousand TON (thousand TEU (thousand R/T /year) /year) /year) Metropolitan Uiwang ICD 1,370 754,807 Honam Jangsung ICD 4,700 340 343,203 Central Sejong ICD 2,360 350 173,422 Yeongnam Chilgok ICD 3,570 330 321,026 Busan Yangsan ICD 1,410 4,460 720,241 Source : Ministry of Land, Infrastructure and Transport(MOLIT), “Inland Logistics Hub in 5 Regions of Korea, 2016. 4 II. Uiwang ICD 5 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Uiwang ICD Korea’s first Began to operate in 1984 ICD Terminal 1 in 1993 & Terminal 2 in 1997 Korea’s largest Total area : 754,807㎡ Total 51 tracks 17 main tracks 3 side tracks 12 tracks for container 15 tracks for general cargo 2 repair tracks 2 lead tracks Source : Korean Rail Road Corporation(KORAIL), 2017.09 6 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Uiwang ICD Container Total 12 tracks 8 at Terminal 1 3 at Terminal 2 1 at Container Yard(CY) Max of 31 services per day 16 outbound & 15 inbound Source : Uiwang ICD web(www.uicd.co.kr), 2017.09 Max of 63 daily services in total by day Mon(48), Tue~Fri(63), Sat(53), Sun(36) 389 services per week Container: 164 per week(42%) Cement: 157 per week(40%) Steel: 56 per week(15%) Paper: 12 per week(3%) Source : Korean Rail Road Corporation(KORAIL), 2017.09 7 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Uiwang ICD Cargo flow of rail based shipment Manufacture Obong Station Sea Port (Shipper or 2PL) Truck Rail (Busan, Gwangyang, etc.) Source : Korean Rail Road Corporation(KORAIL), 2017.09 Contracted vs. Uncontracted Service Contracted service(private rail) Uncontracted service Annual contract between customer Urgent and unpredictable cargoes and operator by train unit Relatively higher rate Fixed rate(excluding cargo volume) 8 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Uiwang ICD Structure of Total Revenue in 2016 Cargo Transportation Business Outbound Inbound Total Cargo Volume Revenue Volume Revenue Volume Revenue (ton) ($) (ton) ($) (ton) ($) Container 2,590,614 27,055,720 1,995,600 19,718,850 4,586,214 46,774,570 Cement 0 0 3,316,446 28,334,510 3,316,446 28,334,510 Steel 3,174 31,040 494,731 5,131,550 497,905 5,162,590 Paper 0 0 92,124 1,692,480 92,124 1,692,480 Others 137,545 246,400 44,034 66,260 181,579 312,660 Total 2,731,333 27,333,160 5,942,935 86,742,680 8,674,268 82,276,810 Source : Korean Rail Road Corporation(KORAIL), 2017.09 9 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Uiwang ICD Structure of Total Revenue in 2016 Logistics Business Lease : Yard, Reach Stacker, Cement Silo, Land Warehouse ICD Rent : Using the land of rail track Outbound Business Revenue Ratio Lease ($) (%) 26% Lease 2,896,851 26% ICD Rent Warehouse 7% Warehouse 808,485 7% 67% ICD Rent 7,613,974 67% Others 28,708 0% Total 11,348,018 100% Source : Korean Rail Road Corporation(KORAIL), 2017.09 10 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Uiwang ICD Route by Cargo Type Container Major route Busan Uiwang ICD (Old & New Port) Gwangyang Port Annual Trade Volume in 2016 Measurement Outbound Inbound Ton 2.6 million 2 million TEU 221,486 TEU 176,586 TEU Source : Uiwang ICD, 2017.09 Source : Uiwang ICD, 2017.09 11 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Uiwang ICD Annual Trade Volume and Revenue by Origin-Destination(O/D) in 2016 Outbound Inbound Total O/D Volume Revenue Volume Revenue Volume Revenue Ratio (TEU) ($) (TEU) ($) (TEU) ($) (%) Busan North 115,191 14,200,550 89,116 10,004,340 204,307 24,204,890 52 New Port South 43,308 5,196,140 34,036 3,737,730 77,344 8,933,870 19 Busan Old Port 57,687 7,065,520 42,094 4,666,200 99,781 11,731,720 25 Gwangyang Port 4,581 568,200 11,003 1,310,580 15,584 1,878,780 4 Others 719 25,310 337 10,650 1,056 35,960 0 Total 221,486 27,055,720 176,586 19,729,500 398,072 46,785,220 100 Source : Korean Rail Road Corporation(KORAIL), 2017.09 12 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Uiwang ICD Route by Cargo Type Cement Major route Dodam-ri Ipseok-ri Uiwang ICD Ssangyong-ri Jecheon Donghae Annual Trade Volume in 2016 Measurement Inbound Car 63,776 cars Ton 3.3 million Source : Uiwang ICD, 2017.09 Source : Uiwang ICD, 2017.09 13 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Uiwang ICD Route by Cargo Type Steel Major route Pohang Uiwang ICD Gwangyang Annual Trade Volume in 2016 Inbound Measurement Cold Hot Steel Others Steel 9,695 Car 559 cars 452 cars cars 470 27 16 Ton thousand thousand thousand Source : Uiwang ICD, 2017.09 Source : Uiwang ICD, 2017.09 14 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Uiwang ICD Issues of Uiwang ICD Individual operation system Useless of integrated information system such as Electronic Data Interchange(EDI) No sharing and reporting information in advance between trucking company and ICD operator causes terminal congestion Therefore, 17 operators serve based on their own operation system(yard plan, stack direction, etc.) Lack of Container Yard(CY) No space for turning train in the terminal cause safety issue Max. 33 cars are acceptable in the terminal but rail operator increase the number of cars over 40 because of the economies of scale then, complicated load plan due to use of more than one track in each service Old equipment over 20 years of operation, maintenance problems 15 III. Yangsan ICD 16 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Yangsan ICD Background To resolve traffic congestion in the city resulting from ODCY in Busan Old Port Off-dock system at Busan Old Port Opened in 2000, and rail transportation has been available since 2006 Build-Own operate-Transfer(BOT) total 10 blocks and 17 private/public operators Corporation Number Public 1 ODCY 10 Line 3 Transport 2 Source : Ministry of Land, Infrastructure and Transport(MOLIT), “Inland Logistics Hub in 5 Regions of Korea, 2016. CY.CFS* 1 Total 17 Note(*) : CY(Container Yard), CFS(Container Freight Station) Source : Kim Byung Ki, “A Study on the Reestablishment of the Function of Yangsan ICD”, 2011.2 17 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Yangsan ICD Network Connect to Busan Old Port Route 1 (33km): Yangsan ICD-Gyeongbu highway-The first expressway-Busan Port(General Port) Route 2 (38km): Yangsan ICD-Gupo,Yangsan highway-The second expressway-Busan Port(Gamman) Route 3 (31km): Yangsan ICD-Gupo,Yangsan highway-Baegyangsan tunnel-Sujeongsan tunnel- Busan Port(Jasungdae) Source : Kim Byung Ki, “A Study on the Reestablishment of the Function of Yangsan ICD”, 2011.2 18 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Yangsan ICD Network Connect to Busan New Port Route 1 (37.8km): Yangsan ICD-Gupo,Yangsan highway-Gonghang Ro-Local road 2-Busan New Port(BNP) Route 2 (49.1km): Yangsan ICD-Gupo,Yangsan highway-Naengjeong JC-Garak IC-Gadeok IC-BNP Route 3 (34.6km): Yangsan ICD-Gupo,Yangsan highway-Chojeong IC-Gadeok IC-BNP Source : Kim Byung Ki, “A Study on the Reestablishment of the Function of Yangsan ICD”, 2011.2 19 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Yangsan ICD Container Throughput The CY/CFS volume has been decreased since 2005 The CY volume’s compound annual growth rate between 2005 and 2016 is -16% The CFS volume’s compound annual growth rate between 2005 and 2016 is -8% CY CFS Year 1400 (thousand TEU) (thousand R/T) 2005 1,331 1,331 1200 2006 1,123 1,145 1000 2007 1,065 1,039 2008 1,025 1,209 800 2009 647 1,008 600 2010 395 1,186 2011 293 869 400 2012 195 670 200 2013 157 563 2014 139 416 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2015 131 408 CY(thousand TEU) CFS(thousand R/T) 2016 160 517 Source : Yangsan ICD, 2017.9 Busan New Port opened with on-dock system in 2006 20 Sub-regional Meeting on Rail-based Intermodal Transport in Northeast and Central Asia Yangsan ICD Bulk Throughput The bulk volume has been increased since 2007 The bulk volume’s compound annual growth rate between 2007 and 2016 is 74% Bulk 2500 Year (thousand TON) 2005 - 2000 2006 - 2007 8 1500 2008 204 2009 366 1000 2010 523 2011 639 2012 820 500 2013 924 2014 1,272 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2015 1,621 2016 2,012 Bulk(thousand TON) Source : Yangsan ICD, 2017.9
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