City Logistics for the - PowerPoint Presentation

Slide1

City Logistics for the CBD of Seoul:

Its Challenges and Strategies

Jee-Sun Lee, PhD.Associate Research Fel ow, The Korea Transport Institute

Introduction

Urban Growth and Urban Industrial Structure

ChangesLabor-intensive industry ⇒ Higher value-added industryRestructuring of urban industry rearranged spatial pattern of

industrial

location in the Seoul Metropolitan

Area (SMA)

The Seoul Metropolitan

Area

in

Korea

Gyeonggi

Province

Seoul

Incheon

higher

value-added

manufacturing,

commerce,

and

other

service

replace

traditional manufacturingspatially, large-sized factories and warehouses moved to Incheon & Gyeonggi, high value-added industries remain in Seoulfashion (clothing), IT, digital contents, any othercultural industries’ clusters developed in Seoul CBDs

2

Introduction

Fashion (Clothing) Industry in Seoul

VA ratio in fashion industry gradually increasedVA increased at about 6.9% annually between 1999 and 2013

47.5% of establishments

and 47% of

employees in Seoul

0%

20%

40%

60%

80%

19

9

9

20

0

1

20

0

3

20

0

5

20

0

7

20

1

1

20

1

3

S

e

o

u

l

Rest

of

S

.

K

O

R

ratio

10

0

%

ye

a

r

20

0

9

3

3

Introduction

Fashion Clusters in SeoulDesigners

in Gangnam regionsFactoriesin Dongdaemun, Seongdong, and Geumcheon regions

01

02

03

04

Design

Pattern

Design

Tailoring/

Fabric

Cutting

Sewing/

Assembling

05

Mass

Production

06

Knitting/Crocheting

4

Logistics Systems in Dongdaemun

Dongdaemun Market and fashion

ClusterOne of largest fashion clusters in Asia: land size 310 thousand

square meters,

total floor

is 80 thousand square

meters

Over 18

thousand garments

business (around 25% total

in

Korea)

Extend

the

market to China, Russia, Japan, and India

unique urban fashion industry

cluster formed in Seoul CBD: integration of production

and distribution, mix of small- and mid-sized enterprises

and their

multi-layered subcontract system

Raw

Materials

for

IndustryTraditional Wholesale MarketNew Retail MarketDongdaemun History & Culture Park DongdaemunDesign Plaza (DDP)_Subway stationNew Wholesale Market

Chonggechon

Heunginjimun

5

Logistics Systems in Dongdaemun

Freight volume per day (2010)

Total 2,008 tons = production-related 1,127t (56%) + sales-related 881t (44%)- for Seoul (inc. intra-Dongdaemun) 60%,

to/from other regions (provinces)

34%, overseas 6%

Design(planning)

– production

– distribution

all

interrelated

It

requires

prompt

and

accurate

feedback systems

market

research

designmaking

samples

deciding quantity

Design System

(wholesalers &

designers)

1

materials

Purchase

system

(Dongdaemun

Market)

2

production

Production

System

(sewing

factories

&

subcontractors)

3

sales

Sales

System

(retailers

&

merchants)

4

E

h

wa

Ch

a

n

g

sh

i

n

Sungin

Shindang

Ja

n

gc

hun

g

D

ongdae

m

un

Market

materials

Factories

wholesalers

retailers

wholesalers

6

-

Seoul:

Changshin,

Sungin,

etc.

-

Overseas:

China,

etc

Logistics Systems in Dongdaemun

Freight Transportation Mode 1: Motorcycles

adequate for frequent delivery of multiple goods in small quantity; driving onnarrow roads; door-to-door delivery; support all intra-market freight

shipping

disordered and illegally

(un)loading/ parking

⇒ congestions, conflict

with pedestrians, etc.

1

①

Donghwa

Market

(back

side)

②

Cheongpyonghwa

Market

(back

side)

③

Malgunnaegil

④

Cheongpyonghwa

Market

(side)

⑤

Doosan

Tower

(back

side)

2

3

5

4

【

Intra-

Dongdaemun

】

Motorcycles

(100%)

M

o

t

o

r

-

cycles

(50%)

Cars

&

Van

s

(

50%)

【

Dongdaemun

⇔

Rest

of

Seoul

】

7

Logistics Systems in Dongdaemun

Freight Transportation Mode 2: Chartered

Busesretailers/end-users in the provinces utilize this passenger transportation mode for shipping the goods between Dongdaemun and their own regions

enters store-concentration

area at night

(20:30~5:00) and loading/unloading

works

in the sidewalk

⇒ severe

congestions, lack of

safety

for customers

&

tourists

【

in terms

of logistics system 】

regionalconsolidationfor

delivery

joint

operation

in

Dongdaemun

Spontaneous

‘logistics

consolidation’

⇒

optimal(?)logi-system

forlocalmerchants

【

in

terms

of

urban

environment

】

public

spaces

illegally

occupied

‘against’ desirable

urban

①

front

of

U:US

(sidewalks)

②

Designers

club

(sidewalks)

parcel

de

li

v

ery

trucks

【

Dongdaemun

*

provinces

】

bus

e

s

(4

5

%)

cars,

vans

landsc

a

pe

(eg.

sidewalks)

8

Improvement Strategies

Distribution

system

Space

and

facilities

Transportation

modes

Freight

volume

Logistics

behavior

Supports

for

foreigners

Preferences

Diagnosis

results

-

mix

of

production

&

distribution,

and

wholesale

&

retail

-

agglomerated

material

suppliers,

manufacturers

and

merchants

limited

area

of

market

and

freight

operation

space

lack

of

logistics

facilities

such as

parking and loading

zones

-

spontaneously

developed

freight

transportation

modes

(eg.

motorcycles,

buses)

often

cause

conflicts

with

pedestrians

and

deteriorate

urban

environment

big

difference

between

daytime

and

nighttime

logistics

activities

autonomous

(but

not

always

effective

and

efficient)

logistics behavior set in

domestic

and

international delivery demand increasing

drastically

demand

in

storage

also

increasing

-

lack

of

logistics

services

and

facilities

for

international

trade

and

foreign

buyers

all

agreed

to

the

necessity

of

expansion

and

establishment

of

logistics

facilities

reluctantly

give

in

to

the

current

old

and

worn

systems

and

facilities

9

Improvement Strategies

Recommendations proposed to aim at…

improve

freight

operation

environment

levy

on

contributors

of

demand

induction

of

freight

operationModes

-

guarantee

optimum logistics infrastructure

by mode

Behavi

or

shift

street

logistics activities to undergroundreturn public space openreduce side effectsForeigner(for trade)

-

develop

batch

processing

system

for

logistics

business

Operatin

g

‘Logistics

Zone’

Securing

cycle

parking

space

&

loading

zone

Providing

seamless

logistics

business

system

for

foreigners

(esp.

tourists)

①

improving

and

renovating

logistics

environment

of

Dongdaemun

fashion

cluster

②

preserving

the

current

indigenous

logistics

behavior

at

most

③ balancing freight and passenger (inc. pedestrians) moves,

and city logistics environment-

individual transportation & regional logistics consolidation

10

Improvement Strategies

Securing parking and loading

spacesby developing public facilities and spaces around buildings, andintroducing flexible parking system (almost free of charge;

reservation-basis)

expects to preserve

public spaces (eg.

sidewalks and roadways) for

sustainable urban transportation

and desirable

urban landscape

11

Improvement Strategies

Operating ‘Logistics Zone’

through installing loading/unloading zones for several vehicles in operation-at- once to permit temporary parkingallows vehicles (inc. buses) to enter

during the designated

time (11pm to

5am)so

as to minimize

the conflicts with pedestrians

and to

secure vehicle

passage

cheonggyechon

Malgunnaegil

3

.

2

5

m

14.0

m

Loading

zone

마장로

DDP

Current

loading

zone

for

buses

time

access

control

Logistics

Zone

(

23:00~05:00)

Malgunnaegil

12

Improvement Strategies

Providing ‘seamless logistics business

system for tourists’growing global buyers (esp. from Asian counties)  tourism combined with shopping in Dongdaemun as one

core industry of

Seoul ☞ ’empty

hands’

project

batch processing system

of logistics

business for foreign

tourists

and

buyers

to

meet their needs of goods storage and delivery

B

u

s

i

nes

s

center

Automatic

lockers

Direct

delivery

쇼핑객

Tourists

Lodging

Tourist

Direct

delivery

Sto

r

e

Airport

Ho

m

e

13

Thank you

!고맙습니다.

KOTI enriches the future by securing harmony among human, environment and transport……

For

more

questions, please contact

Jee-Sun Lee (

jeeslee@koti.re.kr)