03.26.08

Day 3 - Oceania Cruise: Seoul faces its own congestion crisis

Posted in Cross Cultural, Logistics, Oceania Cruise at 12:32 pm by Administrator

South Korea has moved into the developed country category. You can see it in Seoul not only in the impressive skyline but also in the incredible shopping districts. The stores were filled with shoppers at mid-day on a Wednesday and the young population seems confident in their own future. This is still the land of the small shopkeeper and the mega-retailers have had limited success. On the way to and from the port of Inchon to Seoul, you could see the small hardware and grocery stores that line the sides of the main highways.

Seoul is largely built out but there is incredible amount of in-fill development and renovations to structures that were built during the go-go years of the 70’s and 80’s. The heavy manufacturing locations have largely left the city but there are nevertheless quite a large number of decaying factories. It’s ironic that a country that made its debut on the world market as a low-cost labor country is losing business to countries with even lower wage costs.

One common thread of all of the East Asian countries is dealing with congestion. Seoul, with a metropolitan area population of 23 million, faces gridlock 24/7. The same challenge faces Japan, Taiwan and China. Beijing, with a rush to finish infrastructure, has traffic jams throughout the city. As with other cities around the world, you can’t seem to build enough highways or public transportation to meet the demand for additional time. The same is true on the US side - - because of the deteriorating state of the interstate routes and railroads, congestion is lengthening time to move goods from the port to the final destination.

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