A Study on Two Way Trucking in Port Logistics

SCM Term Project

Background I

• The city of Busan has embarked on a mission to establish itself as the gateway hub of Northeast Asia

• In 2007, Busan Port Authority (BPA) reported 1,144,000 TEU in overall container throughput, a 13.6% increase from last year

• By 2010, 40% of south port’s terminal operation will migrate to the west Newport region

Background II

• The city of Busan has embarked on a mission to establish itself as the gateway hub of Northeast Asia

• In 2007, Busan Port Authority (BPA) reported 1,144,000 TEU in overall container throughput, a 13.6% increase from last year

• By 2010, 40% of south port’s terminal operation will migrate to the west Newport region

The Proposal

• PNC reports an imbalance in inbound / outbound trucking

• An in-depth analysis of PNC’s in-land transportation (trucking) operations with focus on intermodal connectivity and inbound/outbound trucking

Executive Summery

• The scope consisted of three categories: trucking procedures, truckers’ perceptions and road network conditions. The categories represent the seven questions assigned by PNC in the Research Scope documentation with answers provided below.

• Currently the trucking to and from PNC is partly subsidized by PNC in order to overcome the fears of shippers (export) and consignees (import) with their move to the Newport area. The trucking companies asked for a rate increase due to the high volume of return empties when they visit PNC. This installs fear in the shipping lines migration to the west. As the throughput volume of PNC increases the competition in the Newport area will also increase as more companies make their relocation. However many truckers worried that a long queue will emerge at PNC’s gate with the increase in throughput volume. Meeting the small demands of PNC truck drivers and helping them to adjust to PNC’s procedures by posting more information at ECO or other area of congregation is recommended.

2 Way Trucking Summary

　 Total Truck Visit Same Time GI/GO Within 1 hr GI/GO Two-way

SepTruck visit 11,006 2,508 1,733 4,241

Ratio 100% 23% 16% 39%

OctTruck visit 15,820 3,487 2,465 5,952

Ratio 100% 22% 16% 38%

NovTruck visit 27,990 7,038 4,477 11,515

Ratio 100% 25% 16% 41%

TTLTruck visit 54,816 13,033 8,675 21,708

Ratio 100% 24% 16% 40%

2-Way Trucking Summery

60%

40%

Return Empty Return Full

Match back cargo

• The current gate process and its imbalance in single and round trip ratio are shown below. The data was obtain internally from PNC and supports the negative image the truck drivers may have towards PNC.