BMI View: The South Korean government plans to boost the country ' s economy, which over time will provide benefits to the country's freight industry. In addition to encouraging the growth of creative industries and start-ups, the government will help manufacturers shift to smart manufacturing and provide assistance for companies to fully utilise Korea's existing free trade agreements (FTAs).
The government's wants firms to fully utilise Korea's existing FTAs in a bid to increase exports and foreign direct investment (FDI), which provides a boost to South Korea's freight industry. To date, Seoul has signed 14 FTAs with 51 countries, accounting for approximately 60% of total trade, and is currently negotiating eight more. However, many small and medium-sized enterprises (SMEs) lack the expertise that would enable them to maximise the gains from these FTAs.
The outperformer in terms of year-on-year (y-o-y) tonnage throughput is once more set to be the road freight mode, with annual gains in 2015 set to come in at 4.00% (unchanged from last quarter). Rail will be fairly close behind at 3.15%, while we have downgraded our y-o-y forecast for the air freight sector to 1.75% from 2.26% last quarter.
Headline Industry Data
2015 air freight tonnage throughput forecast to increase by 1.75%.
2015 rail freight tonnage throughput forecast to grow by 3.15%.
2015 road freight tonnage throughput forecast to rise by 4.00%.
Total trade (imports plus exports) is set to grow by 3.60% in real terms in 2015.
The port of Busan will see gross tonnage growth increase by 5.50% in 2015.
The port of Incheon is forecast to see gross tonnage growth of 2.00% in 2015.
Key Industry Trends
Asiana Takes Delivery Of First 747-8 Freighter - South Korea's Asiana Airlines has received the first of five Boeing 747-8 freighters, it was reported at the end of 2014. The new aircraft will be deployed to the airline's fleet. However, the new freighter was initially destined for...
The South Korea Freight Transport Report has been researched at source, and features latest-available data covering commercial transport and logistics by road, rail, air and water; industry forecasts, company rankings covering leading national and multinational operators; and analysis of latest industry trends, opportunities, projects and regulatory changes.
BMI Research's South Korea Freight Transport Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Korean freight transport and logistics industry.
- Benchmark BMI's independent freight transport industry forecasts on South Korea to test other views - a key input for successful budgetary and planning in the strategic freight transport market.
- Target business opportunities and risks in the Korean freight transport sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in South Korea.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs, and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering freight transport and logistics, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the freight transport sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2008-2012) and forecasts to end-2019 for all key industry and economic indicators (see list below), supported by explicit assumptions plus analysis of key downside risks to the main forecast including:
- Transport Sector: Total freight carried by road, rail, inland waterways, maritime, air and pipeline (mn tonnes-km/mn tonnes).
- Trade: Exports and imports (USDmn) by category of goods (manufactured goods, food, chemicals etc.); top five import and export trade partners (USDmn); imports/exports to each global region (USDmn)
- Port Data: Throughput (‘000 tonnes) for all major ports in the state.
- Oil Products Prices: Price forecasts for gasoline and aviation fuel (USD/bbl) at all major global energy trading hubs.
- Economic Indicators: Nominal GDP (USDbn); real GDP growth (%); GDP per capita (USD); industrial production (%); unemployment (%)
Details of the freight infrastructure in each state by segment (road, rail, air, water and pipelines). Full analysis of the competitive landscape within each segment.
Industry Trends and Developments
Analysis of the latest projects across the freight transport sector (road, rail, air, sea and logistics) including a market overview which provides an outline of the key elements driving development.
The Freight Transport market reports contain a chapter detailing the political outlook of a given region, examining the domestic politics, long-term outlook and foreign policy, and assessing the impact this could have on freight and transport businesses.
Examines the short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Freight Transport reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.