2. Railway Logistics Business Efficiency Improvement Case
(Cost Reduction, Revenue Increase)
1. KORAIL Railway Logistics Business Status
3. Direction of Investment in Railway Logistics Infrastructure
(Government Support)
[Unit: 1,000 tons]
4,453
4,681
3,890 3,922 4,001 4,031
3,982
3,738
2007 2008 2009 2010 2011 2012 2013 2014
3
Classification 2007 2008 2009 2010 2011 2012 2013 2014
Annual
average
fluctuation
2014
composition
Cement 16,478 17,670 16,015 14,791 14,676 14,602 14,847 14,126 -2.2% 37.8%
Container 11,729 12,443 8,511 9,948 11,679 12,110 11,853 10,386 -1.7% 27.8%
Coal 6,878 7,077 6,367 6,170 5,294 4,876 4,585 4,288 -6.5% 11.5%
Steel 1,816 2,001 1,128 1,735 2,118 2,669 2,644 2,648 +5.5% 7.1%
Oil 2,104 2,006 1,818 1,641 1,348 1,173 1,033 890 -11.6% 2.4%
Ore 2,000 1,939 1,969 2,023 2,210 2,319 1,944 2,106 +0.7% 5.6%
Other 3,526 3,670 3,090 2,909 2,687 2,560 2,917 2,935 -2.6% 7.9%
Total 44,531 46,806 38,897 39,217 40,012 40,309 39,822 37,379 -2.5% 100.0%
[Unit: 10,000 tons]
[Unit: KRW 100M] Revenues/ Costs Operating Profit & Loss
0 Deficit Surplus
2007
2008
2011
2012
2013
2014
[Unit: KRW 100M]
Labor cost 43.4%
Power cost 19.5%
Track access charge 9.5%
Other expenses
27.6%
-3,070
-3,448
-3,132
-3,030
-2,498
-1,795
4,324 4,496
3,982 4,035 4,342 4,494
4,675 4,789
7,394
7,944
6,767
6,610
7,464
7,524 7,173
6,584
3,000
4,000
5,000
6,000
7,000
8,000
2007 2008 2009 2010 2011 2012 2013 2014
수익
비용
Cost
2014
4
Revenues
Costs
Need to reduce fixed costs,
such as labor cost
Facilities
5
Railway Map of KOREA
6
Container Cement Coal
Steel Oil Ore
8
Production
area
(Gyeongin
Region)
Consumption
area
(Busan Port)
셔틀 2차 셔틀
셔 틀
셔틀 Shuttle + cargo-working
KRW 157,000 Railway KRW 273,000 Shuttle + cargo-working
KRW 56,000 Departure
station
Arrival
station Shuttle: 60 min.
Cargo-working: 30 min.
Train Operation: 390 min.
(6.5 hr) Total: 9 hours
Cargo-working: 30 min.
Shuttle: 30 min.
* Railway Transportation Time (9hr): Transportation on main track 6.5h, shuttle loading 2.5h,
Auxiliary expenses other than fare - 42.9% of total transportation cost
‣ Closing freight stations of small freight volume
‣ Functional integration of freight stations with
similar characteristics
‣ Freight handling and train operation centering
on hub freight stations
- 127 stations (2014) → 80 (2018)
*Revenue Decrease: KRW 52.1 billion
*Cost Reduction: KRW 91 billion
→ Effect: KRW 38.9 billion
*Ha, O. K.,(2015) Development of Indicators of freight stations for digital convergence, Cluster Computing, Vol 18(1), pp. 269-278
9
Before (42 container stations) After (22 container stations)
*Source : http://blog.naver.com/PostView.nhn?blogId=travelmap&logNo=220464402837
10
Classification 2007 2008 2009 2010 2011 2012 2013 2014
Trains in operation per day (A) 353 327 300 299 303 290 289 250
Train-unit contract trains per day (B) 14 16 18 33 34 37 55 167
Ratio (A/B) 4.0 4.9 6.0 11.0 11.2 12.8 19.0 66.8
11
Classification 2012 2013 2014 Fluctuation
Freight Volume (1,000 tons) 40,309 39,822 37,379 -3.7%
Transportation Revenues (KRW 100M) 4,494 4,675 4,789 3.2%
80
90
100
110
120
130
140
150
2007년 2008년 2009년 2010년 2011년 2012년 2013년
유가(경유) 철도화물운임 육송화물운임
Railway Freight Transportation Fare Increase (07~13)
Oil price increased by 5.4%
Railway transportation fare increased by 1.3%
Overland transportation fare increased by 4.4%
Oil price
(diesel) Railway
transportation fare Overland transportation fare
12
Classification 2007 2008 2009 2010 2011 2012 2013 2014 Annual
Average
KTX Courier - - - - - - 933 1,081 15.90%
Cargo-Handling 7,813 7,874 6,659 8,046 10,279 10,928 11,471 13,660 8.30%
Loading/ unloading equipment rental - - - - 417 376 376 368 -4.10%
Warehouse - - 570 1,373 1,569 1,035 321 1,817 26.10%
Forwarding - - - - - 875 890 - -
Total 7,813 7,874 7,229 9,419 12,265 12,340 13,101 16,925 11.70%
[Unit: KRW 100M]
14
15
<Details of Railway Logistics Structure Expansion>
16
Project promotion
through feasibility
study
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