Increase of container traffic along the formation of block economy all Korea makes a lot of productions and consumption due to high growth of economy. As a consequence of the internationalization of business activity, Physical transportation demands are considerably increased.
When the nation’s economic activity is a focus on import and export, the cost reduction through a rationalization of freight is an essential element to keep an international competitiveness. An efficient freight is also an important issue for an accomplishment of economic activity and an efficient allocation of limited national resources.
But transportations by land especially container transportation cause additional expenses, freight delay and environmental problems due to traffic jams. Although railway transportation and sea transportation as alternative means is issued, Imperfect of infrastructure and inefficient operation in railway and sea transportation do not meet the demands of transportation service of companies.
But rail way transportation and sea transportation can cut down a distribution cost more than road transportation because of a low transportation costs, raise a serious transportation delay owing to road traffic congestion and cause air pollution, a noise and damaged road due to road transportation of weight cargo.
Revitalizations of alternative means for freight is necessary in the serious traffic congestion due to lack of road capacity as Korea.
So, the result shows that the nation’s freight system places largely too much emphasis on road transportation. Now that the worldwide of oil shocks has caused its price to increase to record highs, we should be interested in other transportations instead of road transportation.
But other transportations except road transportation have lower market share than road transportation. Other transportations such as railway transportation and sea transportation have many problems in comparison with road transportation so they turn away shipper’s head.
The government needs to build systematical transportation facilities in rising oil prices.