New Market Study, "South Korea Freight Transport Report Q2 2013", Has Been Published

Boston, MA -- (SBWire) -- 06/27/2013 --All Eyes On The Global Picture... Still

South Korea's Q412 real GDP growth came in at 0.4%, accelerating marginally from the previous quarter's print of 0.1% but remaining below consensus estimates of 0.5%. Private consumption led growth this time, expanding 0.8% as investments and exports contracted 2.0% and 1.2%, respectively. This has put full-year growth at 2.0%, just a fraction above the 1.9% forecast we outlined in January 2012 (see our online service 'Economy Set For Further Weakness Through 2012', January 31, 2012).

At the end of January, China's flash PMI reported at a two-year high, with South Korean exporters likely to continue riding the wave of a cyclical upturn on the mainland. However, when this upcycle starts to fade, the South Korean freight industry will suffer as a result.

Exports were experiencing turbulence last quarter and continue to do so, which means that growth forecasts for the various freight sectors remain muted. The air and rail modes will see year-on-year (y-o-y) growth coming in at under 3%, with the best performing freight mode - in terms of y-o-y growth - being the maritime sector. The ports of Busan and Incheon will both enjoy healthy annual tonnage throughput growth in 2013.

View Full Report Details and Table of Contents

Headline Industry Data

- 2013 air freight tonnage throughput forecast to increase 2.77%.
- 2013 rail freight tonnage throughput forecast to grow 2.67%.
- Total trade (imports plus exports) in real terms is set to grow 3.80% in 2013.
- The Port of Busan will see gross tonnage growth increase 5.50% in 2013.
- The Port of Incheon is forecast to see gross tonnage growth of 5.12% in 2013.

Key Industry Trends

Merger Planned To Create Korea's Largest Logistics Firm

A US$5bn merger is set to go ahead that will create South Korea's largest logistics firm. Korea Express will amalgamate with GLS; a date of April 1 2013 has been pencilled in for the transaction to take place. Post-merger, Korea Express' stakeholders will include Cheil Jedang, KX Holdings (both 20.1%), Daewoo Construction (5.3%) and Asiana Airlines (5%), according to Maeil Business Newspaper.

Government Moves To Strengthen Domestic Shipping Sector

Plans to block foreign shippers from securing contracts in the state-run energy sphere in a bid to strengthen the South Korea's economic position following the downturn have been initiated by the country's government. On December 21, 2012, the South Korean-state owned Korea Electric Power Corp held an auction for five units, but only domestic shipping firms were eligible to bid for the contracts to transport coal.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Transportation research reports at Fast Market Research

You may also be interested in these related reports:

- Australia Freight Transport Report Q3 2013
- Vietnam Freight Transport Report Q3 2013
- South Africa Freight Transport Report Q2 2013
- United Arab Emirates Freight Transport Report Q3 2013
- Malaysia Freight Transport Report Q3 2013
- Belgium Freight Transport Report Q3 2013
- Poland Freight Transport Report Q3 2013
- Egypt Freight Transport Report Q3 2013
- Argentina Freight Transport Report Q3 2013
- Kazakhstan Freight Transport Report 2013