Research Projects

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Research Projects

STATUS: Complete YEAR: 2014 TOPIC AREA: Sustainability, energy, and health CENTER: MetroFreight

Developing a Parcel Freight O-D and Identifying Parcel Freight Determinants for Seoul Metropolitan Area

Project Summary

The Seoul Metropolitan Government recently has been interested in realigning the city logistics policy to develop the sustainable management strategies for the quality of parcel services in the City of Seoul.  It is significant to understand the spatial pattern of parcel freight movement within the city for developing the appropriate strategies.  This study aims at constructing parcel freight O-D matrix for the Seoul Metropolitan Area (SMA) for the first.  The second objective of this study is to explore which factors influence the productions and attractions of parcel freight transportation within the SMA.  In order to identify determinants of SMA’s parcel freight, it conducts the correlation and regression analyses.

Current Status

Freight O-D has been developed using the actual number of parcels collected by one of Korean major parcel service companies for the year of 2012.  For 66 subareas of the SMA, the freight flow rate between these subareas has been analyzed.

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For the statistical analyses to find out the parcel freight determinants, nineteen variables were selected out of four categories of socio-economic indicators related to population, industry, housing, and income.  In analyzing the effect of socio-economic attributes to each region’s parcel freight, most recent parcel movement dataset for the Year of 2013 was also utilized.  Analysis results show that parcel freight inflows are highly correlated with population, housing, and income indicators, while outflows are strongly correlated to industry indicators.  This study has tentatively concluded that each district (Gu) has its own socio-economic characteristics which affect the productions and attractions of parcel freight.  It would imply that the approach to city logistics policy development needs not only to consider the general aspects of parcel delivery within the city but also to consider each sub-district’s diverse socio-economic characteristics.

As for this project, a joint seminar with Inha University was held on June 30th, 2014.  In the seminar, several relevant research topics were presented by Inha University, Seoul Institute, CJ Korea Express Corporation, and KOTI.  The interim findings have been summarized and submitted to the upcoming 94th TRB Annual Meeting in January 2015.

 Next Step

Developing and refining the parcel freight O-D matrices is to continue to the next year, 2015.  For the remaining of this year, another dataset of interregional parcel freight volume will be collected.  The dataset will be from other parcel service companies (Hanjin Logistics and Hyundai Logistics) which are the industry partners of the KOTI.  This enrichment of dataset is expected to make the O-D estimation and exploratory spatial analysis of the parcel freight within the SMA precise and reliable.  After completing this parcel freight O-D for the SMA, the future project could be to construct the parcel freight O-D at the national level.


Chang-Jin Ahn
Researcher, Logistics Policy and Technology
315, Goyangdaero Ilsanseo-gu
Goyang-si, Gyeonggi-do 411-701
South Korea
[email protected]