Seven Signs of Logistics Fraud

Seven Signs of Logistics Fraud
May 6, 2008 5:28 PM , By Mark Sullivan

What do you do when you receive an anonymous tip alleging that an executive running the transportation department is taking kickbacks?

At first such news can be hard to believe - especially when the department performs well, maintains services in spite of shrinking budgets, and increases savings every year. How could a department show improvement year after year and the executive be defrauding the company at the same time?In just such a case, an investigation revealed that cautionary flags had been flying all along, but the company ignored them because the department continued to perform. No one realized that while budgets and costs werereduced, they had started from seriously overinflated levels. It's easy tocut costs by 5% when you're overpaying by 25%!

Overpayment for services, one of the biggest red flags of all, tells you that the money is there. If it is available, there's a good chance that some people are scheming to get their hands on it. When investigating such redflags, we've found fraud in some cases and incompetence in others.

Every time, however, clients were paying millions of dollars more - usually5% to 25% more - than they should have for services rendered. Companies therefore need to look for the clues that will show if something is notright.

Whether red flags are present or not, however, well-designed internal controls and functional information systems make these frauds difficult toperpetrate. We have yet to see fraud seep into a logistics department where strong controls and processes are present.

Here are some of the warning signs management can watch out for in order to minimize the risk of fraud from within:

Undocumented selection of vendors or service providers

When a single individual selects service providers, then related, controllable, or illicit players can be chosen. A more effective process requires competitive bids, the oversight of a company controller, and the establishment of a cross functional team to select carriers, third-partylogistics providers, or warehouse facilities using predefined criteria.

Rates paid are not in line with the company's standing in the market

Benchmark the rates you pay to service providers. It is difficult for acarrier that earns a fair profit to distribute part of its revenues inkickbacks or illicit payments. Even criminal carriers have to pay their drivers, purchase gas, and provide equipment. One way to a mass a slush fundis to charge slightly above market rates on every transaction, saving these small overcharges to make big payouts.

Payments made outside of the normal account payable system

All payments to a vendor must first be matched to a purchase order and proofof delivery. Progressive companies will calculate freight movement costs, create a purchase order for the planned move, compare invoices, and insure that the delivery took place. Be careful if payments to service providers are: not matched to a unique purchase order or load number; hand delivered; processed outside of thenormal accounts payable system; not accompanied by proof of delivery; paid without an automated calculation of what the charges should be; or approved manually.

Executives with unexplained lifestyle improvements or an extreme debt load

Some of the more common items to look for are luxury cars, trips or vacations with representatives of the supplier, and purchases of realestate.

Business going to related parties

When a manager can choose a service provider with little scrutiny, he can take an ownership interest in a favored carrier. For example, in an instancewhere the logistics manager had sole responsibility for authorizing 100% ofthe moves, matching all of the rates and invoices, and demonstrating that rates paid were market competitive, we learned that he covertly owned partof the sole service provider. This carrier also artificially increased its invoices to the company by using sub-optimal equipment, raising the costsfor our client by 20%.

Unusual payment patterns

Use technology to mine your own data and create exception reports. Whencontrols around payment matching and approvals are weak, service providerswill learn that a company does not notice when they over bill, double bill,ghost bill, or bill for the wrong service. Falsified invoices, however,rarely follow the same patterns as those from honest suppliers.

Any of the following might indicate fraudulent activity: a dramatic increase in payments to one vendor; a high number of transactions under audit thresholds; consecutive invoice numbers or multiple invoices on the sameday; or payments highlighted by exceptions to Benford's law, which statesthat numbers that occur naturally in business follow some basic patterns.Perpetrators of fraud rarely have the knowledge or capability to fake these.

Complaints or tips

While logistics managers or executives may wield the power to navigate weak controls to perpetrate fraud, they have a harder time fooling those working closely with them. Eventually, they try to get rid of nonconformers or exclude them from the "in crowd." Paying close attention to the dynamics within a department and the comments or complaints lodged by coworkers canprovide significant clues that things might not be what they seem.

Angsa Itu Mulai Beranak Elang - Kairetsu

Angsa Itu Mulai Beranak Elang

Kairetsu yang dapat diartikan sebagai Perkongsian ini sebenarnya merupakan strategi Jepang dalam berbisnis automotif di seluruh dunia. Caranya adalah para perusahaan besar automotive memiliki share diperusahaan-perusahaan lain yang merupakan groupnya, misal Toyota Group, ada Toyota Motor Company, Toyota Tsusho Indonesia, Toyota Engineering dll.

Perusahaan besar Jepang tersebut kemudian bekerjasama dengan banyak perusahaan local di seluruh dunia untuk produksi komponen, stamping, hingga perakitan but mostly dengan raw material adalah imported dari steel mills Jepang seperti Nippon Steel, Kawasaki Steel yang notabene steel producer ini juga memiliki share di Toyota Group. Disinilah letak "Keiretsu" nya Jepang, mereka akan tetap menomorsatukan raw material yang berasal dari group mereka sehingga perekonomian mereka tetap bergerak. Komposisi Krakatau Steel sebagai local content hanyalah sedikit sekali atau bahkan tidak ada sama sekali.

Kita cukup kebablasan dengan di ambil alihnya kepemilikan saham astra di TAM oleh Toyota Motor Company Jepang untuk kemudian berganti nama menjadi TMMC, Toyota Motor Manufacturing Company. Akibat dari hal ini secara financial adalah retain earning perusahaan lari ke Jepang semuanya, secara moral pekerja Indsonesia seperti menjadi tamu di negeri sendiri dan secara operasional peningkatan local content Krakatau Steel yang diperjuangkan Astra tidak lagi terdengar.Morale of the story adalah peraturan pemerintah yang memberikan kebebasan perusahaaan asing untuk memiliki 100% saham di Indonesia telah menjadi bumerang. Steel producer Indonesia yang seharusnya bisa memberikan kontribusi lebih kepada industri otomotif Indonesia tidak berjalan mulus, padahal bila menggunakan material Krakatau Steel kita terhindar dari import duty yang tinggi sehingga harga mobil tidakperlu seperti sekarang ini.

Secara resmi zaibatsu (financial cliques) yang melahirkan keiretsu (corporate groups), memang pernah dilarang saat Jepang diduduki oleh Amerika Serikat. Namun ketika kekuatan ekonomi Jepang mulai membaik sekitar tahun1960-an-1970- an, zaibatsu bangkit lagi. Dunia bisnis Jepang kembali membuat pengelompokan seperti yang pernah ada pada masa sebelum perang. Namun berbeda dengan zaibatsu yang lebih jelas, keiretsu bersifat agak samar-samar. Selama ini, para perencana ekonomi atau badan pengembangan teknologi dan ilmu pengetahuan di negara-negara berkembang, sepertinya tidak pernah memeriksa berapa jumlah perusahaan yang mendukung, perusahaan besar Jepang untuk menghasilkan sebuah produk. Bila penelitian ini pernah dilakukan, tidak mustahil sejak awal mereka bisa mengetahui bahwa alih teknologi dari Jepang tidak akan pernah terjadi. Mereka akan sadar bahwa pemindahan kegiatan industri Jepang ke negara-negara berkembang, tak lebih hanyalah sekadar penyewaan lokasi untuk pabrik dan tenaga buruh, terutama sehubungan dengan yendaka.

Gambaran lebih gampang bagaimana cara melihat bentuk keiretsu ini beroperasi, dapat dilihat jelas dari geliatan bisnis Jepang yang ada di industri otomotif dan elektronik, yang memiliki ratusan sampai ribuan mata rantai perusahaan. Dari situ akan terlihat bagaimana imposible-nya negara-negara berkembang melakukan alih teknologi tersebut. Gampangnya, ada satu negara berkembang ingin melakukan alih teknologi elektronika TV atau mobil, maka negara ini tak cukup hanya membawa satu perusahaan saja untuk masuk ke negaranya dan kemudian bisa terjadi alih teknologi. Tetapi harus membawa ratusan atau ribuan perusahaan yang tersubordinasi atau yang menjadi pendukung perusahaan utama tersebut.

* * *PERTANYAAN besarnya, apakah mungkin pemindahan atau pembuatan semacam duplikat dari mata rantai perusahaan-perusahaan sebanyak itu. Ini baru satu persoalan saja, yakni pemindahan perusahaan saja, belum termasuk alih teknologi. Dalam kasus Toyota misalnya, sebuah studi menyebutkan bahwa lapisan atas struktur organisasi piramida Toyota, tersusun oleh 10 perusahaan sub kontraktor utama. Di luar ini ada dua lagi perusahaan lain, tapi tidak berkaitan dengan kegiatan manufakturing. Total perusahaan pada lapisan atas berjumlah 12 unit. Namun jumlah tersebut masih di tambah lagi oleh dua perusahaan, yang dalam kesan umum sering dirasakan sebagai saingan Toyota di pasaran mobil, yakni Daihatsu Motors dan Hino Motors yang dikonsentrasikan pada truk.

Pada lapisan menengah piramida itu terdapat pula dua grup pembuat komponen. Masing-masing adalah kyoho-kai (Toyota cooperative association) , yang terdiri dari 183 perusahaan dan kemudian Eiho-kai (Toyota ProsperityAssociation) , yang terdiri dari 65 perusahaan. Totalnya 248 perusahaan, ini baru perusahaan yang nampak dalam keiretsu Toyota.

Di bawah perusahaan-perusahaan ini masih terdapat pula beberapa angkatan perusahaan dalam urutan hirarki, yang masing-masing terdiri pula dari ratusan perusahaan. Namun berapa pastinya jumlah perusahaan yang ada dalam jaringan keiretsu Toyota, barangkali hanya Toyota sendiri yang tahu. Semua ini memang hanyalah gambaran yang tidak sepenuhnya utuh, namun minimal mendekati kebenaran mengenai otomotif Toyota. Sebab di luar gambaran ini masih ada pula jaringan distribusi yang mencapai 4.750 perusahaan.

Seperti yang ada dalam bayangan orang pada umumnya, sekadar untuk membuat kaca spion saja, perusahaan-perusahaan industri mobil Jepang memerlukan tiga atau empat perusahaan kecil. Perusahaan terakhir melakukan tugas untuk merakit hingga menjadi spion. Keempat perusahaan ini tak mungkin sendiri, karena satu sama lain merupakan dari rangkaian sistem.

Ciri semacam ini bukan khas dominasi dari Toyota, tetapi merupakan khas dari seluruh perusahaan besar di Jepang. Matsushita misalnya, memiliki rantai 160 perusahaan, yang masing-masing perusahaan memiliki lagi mata rantai kecil hingga yang paling kecil yang tidak sedikit jumlahnya. Demikian juga dengan Sony, Hitachi, dan Mitsubishi, semua mengikuti pola seperti itu.

Sebuah contoh konkret tentang berlakunya aturan main tersebut adalah, soal terbakarnya pabrik rem milik Toyota di Perfektur Aichi beberapa bulan lalu. Akibat tidak mungkinnya Toyota memperoleh suplai dari luar jaringannya, maka perusahaan ini harus menghentikan produksi beberapa hari. Akibatnya Toyota menderita kerugian milyaran yen, karena harus menunggu salah satu pensuplai dari lingkungan sendiri memproduksi komponen rem yang diperlukan.* *

*KEMBALI dalam hubungan antara Jepang dan mitra dagangnya selama ini, jelas terlihat bahwa pengejaran oleh angsa yang berada di belakang dalam kawanan angsa menurut flying geese model jelas tidak akan pernah terjadi. Ini belum lagi jika faktor-faktor lain ikut diperhitungkan sebagai misal, sikap perusahaan-perusahaan Jepang yang ada kalanya, jelas-jelas menghalangi negara berkembang untuk melangkah sendiri atau menyalahi garis yangditetapkan.

Kasus pengembangan teknologi Mazda tua yang berhasil dilakukan KIA dari Korsel pada pertengahan tahun 1980-an yang akhirnya menimbulkan kekecewaan KIA, karena Mazda menolak memberi restu atas teknologi tersebut. Masih dalam konteks Korsel, dalam industri semi konduktor, sering kali dikatakan koran bahwa Korsel telah mengalahkan Jepang.

Tapi di luar cerita di koran-koran, ilmuwan Korsel sendiri mengeluh bahwa akibat ketergantungan pada Jepang, total hasil keuntungan dari penjualan semi konduktor tersebut ternyata lebih besar dikantungi Jepang beberapa kali lipat daripada Korsel-nya sendiri.

Barangkali ketidakpuasan yang kini mulai timbul di negara-negara mitra Jepang di Asia, terutama sekali dalam hal alih teknologi, apakah tidak mungkin bahwa industri yang ada di negara berkembang tersebut adalah jaringan keiretsu Jepang. Kalau perkiraan ini salah, pertanyaan yang timbul selanjutnya, melihat dasar dan rumitnya jaringan keiretsu, serta aturan atau komitmen-komitmen yang dipegang teguh para anggota, tampaknya hampir mustahil bagi negara berkembang untuk bisa tumbuh menjadi kekuatan industri yang mandiri.Kalau hanya sekadar dilihat dari sisi menumbuhkan lapangan kerja baru,barangkali kehadiran perusahaan Jepang bisa dianggap bermanfaat. Sisi lainnya hanya sekadar untuk memperoleh wahana latihan dalam sistem industri modern, walau hanya sepotong-sepotong.

Jadi sangat keliru jika hubungan bisnis yang terjalin melalui investasi Jepang di Indonesia selama ini, merupakan rumus efektif untuk memaksa Jepang melakukan alih teknologi. Setelah proses itu terjadi, kemudian negara berkembang itu sendiri menjalankan berbagai proses produksi dari awal hingga akhir. Padahal dalam sistem keiretsu, ibaratnya semua itu tak lebih hanyalah tangan perusahaan Jepang yang ada di negara berkembang, dari ribuan tangan yang mengenggam kepingan teknologi dari produk yang dihasilkannya.

Proses tak terjadinya alih teknologi dalam industri otomotif nasional, sekali pun telah bermitra seperempat abad dengan Jepang, tidak perlu ditanggapi sebagai kekecewaan. Masalah itu sebenarnya sudah harus disadari sejak awal, bahwa hal itu memang tidak mungkin pernah terjadi. Kita telah kehilangan waktu sekitar seperempat abad, karena ketidakjelian lembaga terkait dalam membaca "nafas bisnis" Jepang yang sesungguhnya yang tetap berobsesi ingin menjadi saudara tua, cahaya dan pelindung bagi Asia.

Bila ingin menguasai teknologi dan akhirnya menjadi mandiri, Indonesia mungkin bukan harus menjadi angsa yang adem dan terbang lembut di belakang dalam formasi huruf "V" terbalik itu. Melainkan harus berubah menjadi elang yang tangguh. Namun untuk menjadi elang yang tangguh harus ada kepastian hukum, permainan yang adil dan kompetitif, tidak membuang peluang, menjaga kewibawaan, performance yang bagus, kesungguhan, serius, dan tidak menganggap segala sesuatunya sebagai barang mainan sesaat.Tetapi harus dilihat sebagai sesuatu peluang besar untuk membawa bangsa ini menjadi mandiri, karena waktu, tenaga, dana dan kehormatan yang dipertaruhkan untuk menjadi elang itu sudah terlalu besar dikeluarkan.

Kalau semua pengorbanan yang dilakukan oleh seluruh masyarakat ini tak diimbangi dengan kemampuan yang maksimal, bukan saja si induk angsa beserta rangkaiannya yang menghantamnya, tetapi juga kolega angsa itu ikut menghantamnya. (Banu Astono/ Yusron Ihza)

Sumber : Kompas

Biaya transportasi barang di Indonesia dinilai mahal

(diambil dari Bisnis Indonesia online, 16 April 2008)
JAKARTA: Transportasi barang di Indonesia belum efisien, terbukti dari tingginya biaya operasional kendaraan yang mencapai US$0,34 per km atau lebih mahal 35% dibandingkan dengan rata-rata Asia sebesar US$0,22 per km.

Hal itu terungkap dalam studi biaya transportasi barang Indonesia yang dilakukan oleh Lembaga Penyelidikan dan Ekonomi dan Masyarakat (LPEM) Fakultas Ekonomi Universitas Indonesia dan The Asia Foundation pada Oktober-Desember 2006.

Temuan itu menegaskan kembali posisi industri angkutan barang di Indonesia yang tergolong berbiaya tinggi dan tidak efisien seperti yang dilansir oleh Bank Dunia beberapa waktu lalu.

Arianto A. Patunru, Research Director LPEM FEUI, mengatakan rata-rata biaya operasional kendaraan di Indonesia mencapai Rp3.093 per km atau US$0,34 per km, sedangkan rata-rata Asia hanya US$0,22 per km.

"Selama 2005 sampai sekarang tak banyak perbaikan sehingga biaya logistik di Indonesia 14% dari total biaya produksi," katanya dalam laporan studi itu, kemarin.

Dia menjelaskan temuan itu mengacu studi di enam rute, yakni Bulukumba-Makassar, Pare Pare-Makassar, Palopo-Pare Pare, Mamuju-Pare Pare, Marisa, Gorontalo, Kotamobagu-Manado, Sumbawa-Mataram, Malang-Surabaya, Rautau Parapat-Medan. Studi itu melibatkan 315 pengemudi truk dari 179 perusahaan.

Arianto menyatakan rute Rantau Parapat-Medan menempati posisi paling mahal di Indonesia dengan biaya Rp3,236 per km, sedangkan yang paling rendah di rute Malang-Surabaya sebesar Rp2,823 per km.

Arianto memaparkan besarnya biaya transportasi barang di Indonesia lebih disebabkan oleh banyaknya masalah di jalan. Sedikitnya ada empat masalah utama yang menyebabkan biaya transportasi barang menjadi mahal, yakni kualitas jalan rendah dan topografi sulit, peraturan dan perizinan serta retribusi daerah, jembatan timbang dan kelebihan muatan, serta pungutan keamanan.

Menurut studi itu, masalah perizinan dan retribusi daerah merupakan komponen tertinggi pungutan di jalan, yakni mencapai 46%.

Tindakan nyata

Neil McCulloch, Direktur Program Ekonomi The Asia Foundation, menyatakan pihaknya merekomendasikan agar pemerintah pusat dan daerah melakukan tindakan nyata untuk menurunkan biaya transportasi barang.

"Pemerintah pusat dan daerah perlu menghentikan berbagai pungutan atau biaya-biaya tambahan di transportasi barang," kata McCulloch.

Untuk beberapa sektor, ungkapnya, total biaya sebelum pengiriman dan angkutan darat dalam negeri lebih dari 40% dari total biaya logistik dan biaya angkutan.

Dia merekomendasikan pemerintah pusat dan daerah agar mengkaji ulang semua regulasi transportasi, baik di tingkat nasional maupun daerah, menghapus retribusi daerah, dan pengembangan kapasitas.

Selain itu, lanjut McCulloch, perlu dilakukan kampanye transparansi, reformasi sistem insentif polisi, penyebarluasan inisiatif Departemen Perhubungan dalam mengurangi toleransi muatan lebih.

Dirjen Perhubungan Darat Departemen Perhubungan Iskandar Abubakar menyatakan pihaknya akan berkoordinasi dengan Departemen Dalam Negeri untuk mencabut peraturan daerah tentang retribusi.

"Kami berupaya mengumpulkan peraturan daerah yang sebabkan biaya tinggi di angkutan darat agar bisa dihapuskan," kata Iskandar.

Sementara itu, Kasubdit Pembinaan dan Penegakan Hukum Ditlantas Polri Kombes Pol Lukito menyatakan pihaknya telah menindak aparat yang melakukan pungutan keamanan dengan memutasi pejabat kepolisian yang membawahi aparat tersebut.

Namun, dia menilai penelitian Asia Foundation dan LPEM FEUI kurang objektif karena pungutan itu tak hanya dilakukan oleh aparat keamanan atau polisi, tetapi juga oleh instansi lain. (01/09) (hendra.wibawa@bisnis.co.id)

Korean Canal Project - part 4 - France example

Two last posting is going to telling us about one of the canal construction benefit for leisure, business, or any other economical advantage regarding to a city waterways system. Rotterdam and Seoul are a good example to represent the city waterway system. I will post another example after I review one big canal project in Europe in the year 2008.

France, a country in Europe, is one example to represent a country with a lot of canal. In total, there are 14.932 km of waterways and 6.969 km are heavily traveled. Reader can refer to wikipedia to get the name list of canal in France. (source : http://en.wikipedia.org/wiki/List_of_canals_in_France).

Picture on the left is one of the canal in France, called The Grand Canal of Alsace. The length is about 50 km, placed in the eastern of France. This canal provides access for barges from the Rhine river, Basel (Switzerland) and the North Sea. One of the advantages of establishing this canal is to produce hydroelectric power at city called Kembs and Ottmarsheim, to supply electricity to the region that occupied by heavy industry in France. But, the canal which was began constructed at 1932, also have disadvantages that is ruined the ecology of the area permanently.

There are still many other canal, small size until big size canal, in the country that bordering the Mediterranean Sea. And, they will develop many other canal to boost the country's economic growth.

One canal that is under construction is called by Seine-Nord Europe Canal. This project is set to begin in 2008. The canal will start from the Oise River at Janville to the Dunkirk-Escaut Canal. The total length will be 105 km. It is said that this canal will be a high capacity water transportation system in France since the recent transportation bring out CO2 emission and traffic congestion. The project leader of this canal reported that 1500 containers unloaded in the port is equal to 1000 trucks on the road or 25 fully-loaded goods trains, but it's only for 5 vessels.

We may see that France is a country that become a hub in EU. The development of the canal may bring many benefit to the surrounded EU country. We may see that even the development of previous canal ruin permanently the environment, but for sure, French researcher consider it deeply to establish the canal that brings controversially discussion regarding environment issue. However, every single problem should be solved by the knowledge ability of human being who is talented-given by the Creator of life.

Korean Canal Project - part 3 - Han river as the 2nd miracle of Seoul city waterfront

One of the main project of waterfront in South Korea is Han river. The most famous project under designed recently is being a focus to the korean canal project instead. The Korean canal project may ascertain this mega project as is suggested by Seoul mayor as the second miracle of Han river. We may see the big project that will be followed by the Korean big canal project.


Seoul mayor emphasizes that it is time to market the city internationally after developing it as a "brand" and the Hangang (or Han River), with its central geographic location, will be the focus for the development of the city's new image. "We've seen the Hangang only from the perspective of flood control and its geographic status dividing the city into north and south," Oh Se-hoon said in an interview with The Korea Times.

Project Underway to Redesign City

"Now, we want to develop the river as Seoul's iconic landmark, which will allow the city to have competitiveness." The city government last July announced more modified plans for the large-scale redevelopment plan under the title of the "Hangang Renaissance Master Plan" after it detailed last year's initial city restructuring plan.

Hangang Renaissance
The plan is mainly divided into two main themes - restoration and creation. The restoration focuses on the revival of the river's old functions as an ecological home to people and other creatures while the creation aims to offer spaces for culture, business and tourism to the overcrowded city.
The city will soon designate special areas around the river as a core-developing zone under the theme of "Waterfront Town." They include Magok, Yongsan, Yeouido, Sangam and Jamsil. They will enable people to visit the river and its parks without traffic difficulties or hindrances.
The riverside highway roads will be reconstructed underground so that people can walk freely around the river, without having to worry about noise or danger, and will also serve as a Mecca for business and tourism with various facilities such as R&D institutes and cultural centers.
The areas around the riverside have been mainly used for residential housing projects. In the long-term plan, however, the city will also see an international terminal linking Seoul and Shanghai in China via a Hangang-West Sea route from Jamsil. The massive redevelopment plan also includes improvement on scenic views of the Hangang areas.
The city will come up with comprehensive guidelines for the designs of buildings and construction on the areas. "The scenic view of the river will be changed. It will be planned from the viewpoint of a ship on the river, not from an apartment on the riverside" Oh said. The plan will be fine-tuned and finalized within the year and more tangible results will come out from next year, the mayor expected.
"Let's say, if the first 'Miracle on Hangang' refers to the nation's drastic economic growth, the second 'Miracle of Hangang' will be more about cultural revolution," he said. The efforts for the facelift of the city have been also well recognized internationally. Seoul was designated as the "World Design Capital (WDC) 2010" by the International Council of Societies of Industrial Design on the last day of its congress in San Francisco on Oct. 21.

The WDC project is a biennial international competition to identify and recognize a city that has effectively used design to revive the community and improve the quality of life for its citizens. True International City Along with the redesign of the city's appearance, the mayor also emphasizes the importance of systematic supports for its citizens and visitors from abroad to develop the city into one that is international in the true sense of the word.
He believes that the city should offer a better environment for overseas guests and residents as well as native citizens as the country is rapidly turning into a multicultural society. The number of foreigners residing here exceeded a million last August for the first time, which makes up about 2 percent of the total population, according to the Ministry of Justice. Of them, some 200,000 live in Seoul alone.
"Now, it's time to stop thinking that we live in a racially homogeneous nation. We should think about the ways to live together with foreigners in harmony," Oh said. Of the many difficulties that overseas visitors and residents face here, in the view of the mayor, the language barrier is one of biggest problems. To tackle the issue, he said the city would soon launch a project to designate "global zones."

Under the global project, the city government will select 15 districts where many foreigners reside and visit. The selected areas will offer more foreigner-friendly administrative services. It also plans to build two more international schools in the zones. The project will consist of three different types of zones - global business zone, global culture exchange zone and global village.
In the global business zone, the Seoul Global Center will be established to deal with business affairs for foreign companies. Culturally Rich City Seoul citizens may think they have so many attractions in the city but many overseas visitors may think differently, often complaining about the lack of things to enjoy. The mayor said that having the city's representative festival like the Rio Carnival in Brazil and Edinburgh Festival in Scotland can be a solution to the problem.
"Many foreigners visiting Seoul point out that the city lacks attractions to see and enjoy. We have been pushing hard to create various activities and events for them in hot spots around the city. And we believe various festivals in Seoul are as important as tourism programs in the marketing of the city," the mayor said. He expected the "Hi Seoul Festival" can be developed into one of Seoul's representative festivals.
Although the festival in spring has still a long way to be recognized as a successful international festival, this year's festival produced fruitful results as it was held under the unified theme of Han River and Seoul's history, he said. "The festival still lacks a strong image to represent the city. But the huge participation of locals and foreign tourists in the festival gave me a chance to realize how important an enjoyable festival is once again," Oh said.

source : Korea Times

Korean Canal Project - part 2 - Rotterdam Waterfront city

Let us see some other example of waterfront project. Rotterdam is one of the famous waterfront project. Picture below represent the picture from the air of Rotterdam city. 'From world port city to a fully connected European city as part of the developing Delta Metropolis'. That is in a nutshell the goal of the transformation of Rotterdam and its waterfront. The year of 2001, in which Rotterdam is Cultural Capital of Europe, is being used to pursue this goal. In order to generate ideas and inspiration, residents and users of the waterfront as well as developers are being consulted; London, Baltimore, Hamburg and Barcelona have also been invited to supply ideas


There are two backdrops against which the debate about the Rotterdam Waterfront can be placed. One is the scenario of optimum investment in the leisure industry and the other is the realisation of a sustainable development of the city on the water. These scenarios, and everything associated with them, are regarded as building blocks about which at the end of the year a debate will be conducted. The objective is to provide inspiration, to seek a common objective and to find an answer to the question how the enormous wealth of ideas for the Rotterdam Waterfront can converge into a development vision for the coming 15 years.

The city concept is to make the rotterdammers enjoy being the citizen of this city. The urban planning and design, such as Willemsbrug bridge, the first city bridge in this waterfront is still under designed. The study area covers part of the railway tunnel route and covers the Oudehaven, the Willemsbrug, the Noordereiland and the 'Vrij Entrepot'. Making use of different scenarios a study was carried out into whether and under what conditions coherent development is possible, whereby on this side of the central area too a cross-river structure with associated programmes can emerge. A project comparable to the city axis (large-scale, formal, representative, fixed in a complete infrastructure and strong routing), but also complementary in character (small-scale, informal, unusual everyday, regarded as a collage, a series of urban land uses and areas).
Other hypothesis is toward the dimension of use. The popularity of living and working in offices by the river is now rather evident. It is an area with fantastic panoramic views that no other Dutch city can match. Culture and leisure and entertainment as a specific expression of urban living are another story. There is not so much to do or see. The task is to give the city an opportunity as a centre of urban culture, leisure and entertainment, also on the waterfront.This dimension relates directly to one of the four themes of the Biennial: Global Forces. The hypothesis to be tested in the context of this task is that urban culture, leisure and entertainment (in addition to housing and employment) can determine the new relevance of the waterfront. An important question is to what extent the waterfront of the city can and must develop in a specific/local or generic/global way.

Other issues remained is how further the idea and study can be integrated into the implementation. No environmental issues related on this development study. Korean canal still remains many debate , especially toward environmental problem and other reconstruction that inflict a financial loss in some economic community in South Korea.

(source : http://www.planum.net/4bie/main/m-4bie-rotterdam-ci.htm)

Korean Canal Project - part 1

The inland waterway system in Korea, the biggest vision of South Korea President elected, Lee Myung Bak brings a high conflict of interest among the public. Most of the people concern toward the environment problem since the river is a potential resources to provide water.


Many organization tried to against this brilliant idea, that was implemented in several developed country, such as USA, some European, and China as well. Many logisticians think that this is a better way to save environment from the gas and oil problem.


Let see from the beneficial perspective of using the waterway transportation system. We assume that Seoul-Busan will take 500 km in distance. Some researcher in Netherland (Goederenvervoer in Netherland, Ministerie van V&W) had researched that costs per tonkm is shown as in the next table. Let assume that all big vehicle will carry the container. There will be 0.04 Euro different. A 160 TEU ship may brings a lot of containers that equals to 120 trucks.
We can simply said that there will be a cost reducing about 120 x 0.04 Euro x 500 = 2.400 Euro for each shipping.

Busan port handled 1.3 million containers in 2007. (source: Dynamic Busan monthly newsletter). Let assume that 1 truck could carry 1 container. Therefore, we may multiply 1.3 million container with 0.04 Euro and 500km distance, that is equal to 26.000.000 Euro. (1 Euro = 1500 won: 2008). So, the Korean can save about 39 billion won in transportation cost if they use the inland waterway system.


This simple enumeration is just considering the naive transportation cost related with distance. We have to consider other aspect, such as reducing the gas emission regarding the usage of variety of trucks, safety factor of using waterway system, etc.


Today, I just bring some data related to the beneficial of developing the canal project in Korea. However, the government should do research in more detail regarding other environment problems may exist of doing this big project.