Article
Port choice model of transhipment cargo using system dynamics
The aim of this chapter is to identify factors that have been affecting the increase of transhipment (T/S) cargoes of the port of Busan and to explore how these factors can be utilised more effectively to attract and increase T/S cargoes through the development of a port choice model using the technique of system dynamics (SD). To clarify the reason why T/S cargoes have increased in the port of Busan, several steps have been taken as follows. The first step was to design a quantitative model to explain the development of T/S cargoes during the last decade. The second step was to define dependent and independent variables for multiple regressions after testing variable significance. For this, data collection and the accuracy of validation have been achieved by using the direct interview procedure involving experienced experts from both Korean and foreign shipping companies. After validating themodel with the collected data, the final step was to find variables that confidently explain the model.
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