Shipping by drones to island area is going to be regularized starting from 2018. E-commerce (O2O and others) personalized distribution infrastructures will start operating at major airports and harbors. Development of eco-friendly and high-efficient Smart distribution technologies such as distribution robots and intelligent and high-performance harbor operation system is also going to start.
Ministry of Land, Infrastructure and Transport (MOLIT) and Ministry of Oceans and Fisheries (MOF) made an announcement on the 3rd that they have finally decided on ‘National Distribution-Basic Plan from 2016 to 2025’ that has such information after going through reviews by ‘National Distribution Policy Committee’. National Distribution Policy Committee is going to create 700,000 jobs in distribution industries until 2025 based on National Distribution Basic Plan and build South Korea to become top 10 distribution country in the world by having sales from distribution industries of $134 billion (150 trillion KRW).
Under a vision of ‘fulfillment of strong distribution country in the world through innovation of distribution and creation of new industries’, MOLIT chose promotion of distribution industries with high values in response to changes in trends of industries, overseas expansion according to changes in global distribution topography, development and expansion of Smart distribution technologies in response to future, and formation of continuous distribution industry environment as 4 strategies that it will be pushing for.
According to National Distribution Basic Plan, South Korean Government is going to improve system to promote distribution industries with high values such as new distribution, O2O (Online to Offline) and others and accelerate in business support while providing personalized infrastructures. Regarding road transport field, South Korean Government is going to improve a system in introducing freight transport market starting from this year abd modify laws regarding commercialization of new transport methods such as tricyclic electric vehicles. It is going to support convergence between businesses such as distribution O2O business based on distribution functions and officially has started on ‘High-Tech City Distribution Complex’ business by recently selecting 6 locations such as Korea Truck Terminal and others as testing sites. It is also going to respond to reorganization of international alliance of Korea Shipping Company by supporting shipping fund to introduce huge and high-efficient ship that is worth $1.2 billion and examine establishment of ‘trading pit for shipping’ where people can deal derivative goods.
Shipping using drones, which has emerged as a hot topic recently, is going to be based on demonstrations that will take place until next year and will be commercialized in island areas. South Korean Government is also going to help to commercialize high-tech distribution technologies such as auto-picking robot, shuttle robot and others, which are for establishment of Smart distribution center, early by setting up test beds and is going to expand to global markets by pushing for development of major Smart distribution technologies such as Smart Container, eco-friendly trucks, intermodal system and others.
South Korean Government is planning to establish ‘R&D roadmap for distribution’ by end of this year and occupy next-generation distribution technologies including 4 future distribution technologies such as VR, free distribution, IoT, and wearable devices in advance. It is going to develop management system that is converged with VR, wearable, and IoT to fulfill unmanned distribution center and secure technologies to develop Hyperloop transportation system (speed greater than 1,000km), self-driving trucks, platoon system technology, and small and medium planes for freights with high efficiency for ultra-fast distribution and long-distance transportation. In a field of harbors with shipping, it is going to secure preceding technology of ‘high-performance new-concept loading and unloading system’ based on unmanned automatization using IoT and robotic technologies and search for R&D technologies that are needed on scene.
South Korean Government is also going to form an environment for distribution industry where environment, safety and security can be continuous. It is going to establish a medium and long-term plan by end of this year to prepare for Paris Agreement (Post 2020) and push for distribution ways for land, sea and air and eco-friendly infrastructures such as eco-friendly ship, electric locomotive and others while preparing for plans to reduce energy from distribution bases. It is going to prepare a national safety management system for dangerous products that will monitor all processes of transport to safely transport dangerous products and expand infrastructures for safety. It is going to develop e-navigation technologies in a field of shipping harbor and is going to levy fees for securing harbor facilities starting from next year. Aviation industry will establish a next-generation aviation control system.
South Korean Government is also going to expand overseas expansion for South Korean distribution businesses. It is going to set up a sequential roadmap to promote South Korean GTO (Global Terminal Operator) that will eventually become like a global GTO such as Singapore PSA and have harbor construction businesses to push for foreign distribution bases along with distribution businesses. It is going to push for sequential and gradual liberalization of aviation with China to expand international distribution network towards Northeast Asia and Eurasia and strengthen private cooperation to expand combined transport between South Korea, China and Japan.
“National Distribution Basic Plan is focusing on capabilities of policies such as creation of new industries and services, overseas expansion, and development of Smart technologies to respond to rapid-changing environments such as convergence in between industries and fourth industrial innovation.” said a representative for MOLIT. “Not only are we going to strengthen our competitive edge in distribution industry in the future but creation of employments and level of convenience for consumers that are using distribution service in their daily lives are going to be improved much more.”
Staff Reporter Joo, Moonjeong | mjjoo@etnews.com