Effect of ITT Volumes on Container Terminal Competitiveness: Focusing on Busan Port

Purpose - This study analyzes the effect of Inter Terminal transport (ITT) volume on the competitiveness of container terminals in Busan Port. ITT volume reduces the competitiveness of container terminals by incurring additional transportation costs and time. This study uses berth productivity, a quantitative indicator of container terminal competitiveness, to estimate the effect of ITT volume, and uses the results as evidence that technical and policy measures are required to mitigate ITT volume. Design/Methodology - The main methodology of this study is panel regression analysis using panel data, which combines both cross-sectional and time-series data. We used monthly berth productivity, ITT volume, total container volume, and loading and unloading time data for five container terminals at Busan Port from 2014 to 2022. Pooled ordinary least squares as well as fixed-effect and random-effect models, which are representative panel regression analyses, were used, and additional tests were conducted to select the most appropriate model. Findings - The results show that ITT volume adversely affect berth productivity but contribute positively to the total volume. This implies that ITT volume is a factor that reduces the competitiveness of container terminals. Therefore, we may conclude that container terminal operators at Busan Port must be consolidated to reduce ITT volumes or a technical and legal system must be developed to efficiently transport ITT volumes. Originality/value - Previous ITT studies focused on developing countermeasures to address ITT issues. This study is significant because it attempts to quantitatively analyze the effect of ITT volume on port competitiveness, which has not been investigated sufficiently.