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Overview of Logistics & Transportation Issues 2006
Since I have taken over the Chairmanship of the Logistics and Transportation Committee on 1 st January 2006 the Committee had a closer look at the development of the logistics situation in Korea .
Slide 1 / point 1
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We still see a logistics industry that is too fragmented and the various transport areas are not working closely together. |
Slide 1 / point 2
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This contributes to the high logistics costs in comparison to other countries including those in the Asian region. The overall logistics costs are still on the increase and stand according to informed source at around 9-12 % as share of sales. |
Slide 1 / point 3
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Still today freight forwarders cannot obtain a customs brokerage license under the same company which is a hindrance for the industry. |
Slide 1 / point 4
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Despite many calls for further standardization the standard pallet sizes are unique for Korea can therefore not be interchanged with Europe or USA for instance. |
Slide 1 / point 5
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Of the most pressing needs we see is the requirement of sufficient educational institutes for the logistics industry. Korea needs people that are very well trained and educated in all aspects of the logistics. Despite having some logistics institutes in Korea we need far more learning centers to meet the ever growing demand of experts in our industry. |
Slide 2 / point 1
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This brings us to the questions about the pressing needs to succeed in transforming Korea into the hub of North Asia . We all know that it is the aspiration of many surrounding cities and areas to be called the major hub in Asia . There is Singapore , Hongkong and more closely Shanghai and other Chinese ports. |
Slide 2 / point 2
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A hub concept can only be successful if the access to marketplaces is unrestricted and we still need to see this as an urgent challenge for Korea . |
Slide 2 / point 3
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Due to local legislation there are still obstacles of interaction between international and domestic logistics. For instance, in container traffic such interaction is badly needed. |
Slide 2 / point 4
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Last but not least my most important issue for the today's logistic industry in Korea . The emphasize on logistic hardware overshadows the urgent need for educational requirements in order to deliver the logistic excellence that is required to become the hub of North Asia . |
Slide 2 / point 5
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Logistics is a people business and not a hardware business. Hardware we already have a lot in Korea .
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