President Park Jae-euk of Chunil Cargo Transportation Co., concurrently 

chairman of the K orea Integrated Logistics Association (photos: Chunil Cargo Transportation)

The following is an excerpt of an interview with President Park Jae-euk of Chunil Cargo Transportation Co., who is also chairman of the Korea Integrated Logistics Association. The chairman discusses various problems the logistics industry is faced with and the ideas to solve them, including measures logistics firms should take to ensure their future growth. 

Question: What can you tell us about the 2013 Logistics Day events and the award presentation ceremony?

Answer: The Korea Logistics Grand Award, which celebrated it 21st year this year, has been designed to show the importance of the logistics industry and to boost its social position to heighten the spirits of the people in the industry by presenting those who made a contribution to the growth of the industry with various awards including medals, prizes, and various citations.

This year’s 2013 Logistics Day will be observed in a ceremony on Nov. 22 with various side events including the presentation of certificates for excellent logistics firms with warehouses and the Logistics Reform Conference, in addition to the Korea Logistics Grand Award presentation. The conference will have rounds of discussions on logistics policies and logistics operation reform cases. Furthermore, the industry will push for the Logistics Day to be established as a legal memorial day so that everyone in the industry would have more pride and work harder for their logistics firms to improve their paychecks.

Chunil Cargo Transportation Co.’s vehicle carrying a double number plate 

chassis to carry transshipment cargo between Korea and Japan, keeping it intact

Q: Could you please tell us about current trends including problems in the logistics industry and means to solve those problems, if any?

A: It is difficult all around — the industry, logistics firms and the people working for them — and we have to cooperate with one another to solve all the problems in our way and get us back on track. 

With the government liberalizing the industry and giving everyone who want to operate a logistics firm a chance, the industry has become unmanageable and disorderly. Many logistics firms are poor economically and competition has become excessive with so many logistics firms sprouting up and crowding the market.

In the area of transportation, the government categorizes operations based on the types of trucks and sets regulations based on the practice, when it should consider the function and special characteristics of the vehicles, limiting the industry’s ability to face the changes in the logistics field.

But from this year, the industry began to have an easy time, with the government allowing increases in the number of home-delivery trucks, but more trucks are still needed. The government should have the transportation firms operate the trucks and have drivers for home-delivery trucks on a consignment basis by supplementing the existing regulations.

Those of us in the industry should get together and come up with ideas to see that progress is made in the industry in the area of competition and measures for healthy operation of the logistics firms and sound growth of the industry as a whole. The government also should do its share to see that the industry grows soundly and is in good health by developing the framework of the industry.

Q: Can you please tell us something about the formation of an ecological system for the mutual survival of cargo owners and logistics firms?

A: The government has been trying to lead cargo owners and logistics firms to grow together through the ‘cargo owner and logistics joint development council,’ which met a number of times to draw up guidelines for mutual development and standard contract forms. But it is hard to predict the outcome of the meetings, as contracts depend on both the owner and logistics firm and an agreement to standard form for contracts between owners and logistics firms is very nearly impossible. 

Chunil Cargo Transportation Co. head office in Busan

Q: Can you please introduce Chunil Cargo Transporation Co.?

A:  The transportation company began its operation in 1956 and now has a nationwide all-weather hardware and IT system ever ready to do business. The company has expanded its operations to include a number of new areas including home delivery, container transportation, CY/CFS operation, bulk and steel product transportation, rail transportation, car deliveries, and electronic parts with its integrated logistics system linking the logistics systems in foreign countries. It has a number of affiliates in related areas including Chunil Maintenance, CMF, Chunil I&C, C&S International Logistics Center, and NTG-Korea, six in all.

The company operates many logistics facilities around the country including 480 home-delivery depots, 15 container yards, two CFS, four logistics centers, six railroad depots, and others, making up its nationwide network. In the area of home-delivery service, the company has 1,015 delivery lorries, 1,186 trucks for container transportation, 195 special trucks for steel product delivery, 114 trucks to transport cargoes on rail, 50 trucks for regional district transportation, 150 trucks for the car delivery logistics sector, in all 2,680 trucks and 80 other pieces of heavy equipment.

Q: Please explain to us your company’s future plans?

A: We plan to expand our operation in China through our own subsidiary there in the areas of car and electronics parts transportation. This year, the company will open two new logistic centers in the Seoul area and Pohang to secure new customers with our improved services. We also plan to strengthen Internet sales for cargoes for transportation.

C&S International Logistics Center at Busan New Port

Q: Please tell us about your company’s creative logistics system?

A: I can talk about the Double Number of Chassis System as a example. Chunil was the first company to introduce a logistics system for autos and has been in charge of the delivery of cars made by Samsung-Renault from the beginning when it was Samsung Auto. Then, Samsung Auto had a business tie-up with Nissan Auto of Japan and our personnel received training at the Japanese auto company’s plants in Japan to benchmark advanced logistics technologies. After that, Chunil concluded an agreement on its role as the Korean side’s logistics firm under the Renault-Nissan Alliance leading to a partnership tie-up with Nissan Auto, too.

Three years ago, Chunil was chosen to be the logistics firm on the Korean side in the shipment of Korean auto parts to Nissan’s Kyushu plants in Kyushu, Japan, along with Japan Express, taking charge on the Japanese side.