Ports are the core national infrastructure that handles the majority of the import and export cargo volume of Korea. In addition, since 90% of global trade is handled through port logistics activities, port competitiveness is linked to national competitiveness. Against this backdrop, the Korean government has invested in ports to elevate national competency and facilitate the smooth handling of import and export cargo.

   Investment in ports should be made at an appropriate level like other transportation facilities. However, determining the proper investment level for ports requires intensive and extensive reviews. In terms of gaining a competitive edge over Chinese and Japanese ports, significant investment in ports is needed for Korea to offer quality services, but the nation will face an efficiency issue. For this reason, the Ministry of Oceans and Fisheries considers both competency and efficiency in calculating the proper unloading capacity of ports, and the estimations serve as the baseline for its investment.

   However, the National Assembly and the Board of Audit and Inspection of the Republic of Korea pointed out that lower estimations of the adequate unloading capacity may cause excessive investment in ports. As the Ministry of Oceans and Fisheries determines the port size by comparing the projected cargo volume with the appropriate unloading capacity per berth, a lower estimation of the latter increases the size of a developed port. Therefore, this report analyzed the issues related to the calculation of proper unloading capacity, thus exploring measures for reasonable port investment.

   According to the analysis, as the cargo volume of ports fluctuates by season and day of the week, the adequate unloading capacity that refers to the annual unloading volume is insufficient as a guideline for effective port investment. In addition, the estimated adequate unloading capacity of current container terminals is lower than their actual daily average of container throughput as the calculation method was inappropriate. Therefore, in order to resolve these issues, this report suggests that the development size of ports needs to be based on their daily unloading capacity and service level.