Status of Short Sea Shipping in the APEC Region: Best Practices for Users, Operators, Regulators, and Infrastructure Provider Speaker: Young-Tae Chang, Hwa- Joong Kim, Paul TW Lee, Sungho Shin Economy: Korea and USA

Page 2 Scope of Work Gather Data –Coastal Shipping Data: PORT MIS –Import and Export O/D in Korea: Survey –Customs Agency Data Build Model – Model I: Minimize Total Logistics Cost – Model II: Find Where SSS can be more competitive

Page 3 We, first, analyze the current cargo flows and logistics costs analysis focused between the metropolitan area and seaports (including the import and export) Second, the study finds not only optimal seaport’s location as one of key nodes, with minimum logistics costs, but also optimal routes Third, we analyze the effect of cost-reduction through the comparison bet. current status and two (uni- or inter- modal) optimal cases Fourth, this study quantitatively suggests which seaports should be developed from the perspective of minimizing the logistics costs, time, and risk factor 3 4 Current analysis Finding Optimal cases Finding the Gap Suggesting the best node and route

Page 4 Major Lessons from the Research Findings Our findings from the models are clear: SSS will provide more transportation and logistics routing choices for various stakeholders; reduce logistics costs; encourage currently underdeveloped or less-utilized seaports to be further developed and/or used in the future. To do this, new technology such as faster ship and turnaround in major intermodal nodes and policy formulation to expedite cargo movements need be incorporated into the SSS system in the near future.

Page 5 Further Study If Funded in the Future by APEC Externalities incorporated – traffic and environmental factors should be considered to reflect externality effects such as congestion and pollution. If we include these externalities into our research scope in the future, it is more likely that Short Sea Shipping will be recommended to be more used in the region. Generalization of the model in other economies –Our model should be tested and applied in other APEC economies for more generalization.