MOLIT has selected the target sites for the '2024 Digital Logistics Service Demonstration Project' to solve logistics problems faced by local areas such as improving the convenience of residents in logistics-weak areas and innovate the logistics system.

The digital logistics service demonstration project is a project that has been promoted since 2021 to streamline the existing logistics system by incorporating various smart technologies across all fields of the logistics industry such as transportation, storage, and unloading.

The demonstration projects selected this year are ¡ãIncheon City 'Demand-responsive smart loading management system' ¡ãSeosan City 'Logistics (drone) infrastructure creation based on smart city creation' ¡ãBusan City 'Demonstration and support for the spread of shared services for visiting cold warehouses' ¡ãSeoul City 'Demonstration of establishing a storage and delivery service utilizing urban railroad infrastructure' ¡ãGimcheon City 'Living logistics win-win platform to resolve apartment delivery conflicts'.

The selected local governments will receive government funding of 5 to 16 billion won (average of 8 million won) per project (50% support rate) to introduce smart logistics services needed by the region, depending on the scale of the project.

Since 2021, MOLIT has been creating a foundation for the transformation of the smart logistics system by steadily providing opportunities for the demonstration of innovative ideas and technologies, such as the demonstration of a joint logistics system for couriers and small businessmen through the digital logistics service demonstration project and the demonstration of unmanned transportation using advanced equipment such as drones and robots.

Once the selected projects are implemented, tangible effects are expected, such as improving cargo vehicle loading efficiency, shortening traffic distances, and improving the quality of life of residents in logistics-vulnerable areas. In order to promote the project smoothly, MOLIT, Korea Transportation Research Institute, local governments, logistics companies, and other participating organizations will establish a close cooperation system and start the project in earnest from March.

Kim Geun-oh, head of the Logistics Policy Division, MOLIT, said, "If various innovative technologies are activated through the digital logistics service demonstration project, logistics problems in logistics-weak areas will be improved and the level of logistics service will be improved." "After selection, we plan to continue to communicate with local governments and participating organizations to actively support the project so that it can be promoted smoothly, and to discover excellent leading cases so that they can be widely spread."

Specifically, a speed floor that can move horizontally is installed on the floor inside the truck, and sensors that can collect data on the remaining loading space and loads are installed on the walls. The collected information is converted into a loading rate, which can be used to respond to real-time logistics demands by providing the user's app with information on whether or not more cargo can be loaded into the available space. It can also suggest a modified route to the driver to respond in real time to additional freight demand.

In addition, the system is built to handle intermodal transportation of various types of cargo with different physical properties. This is expected to partially resolve the chronic shortage of cargo vehicles in rural areas and increase the utilization of the demonstration cargo vehicles in various fields such as construction materials and waste as well as daily logistics.

It is also expected to reduce the labor intensity of workers. The floor store is designed so that the floor of the truck itself can extend outside the body, so when loading and unloading goods, workers can conveniently load and unload at the door without having to bend down from the inside of the truck and carry the goods back and forth to the door of the truck.

Incheon plans to introduce the system to 20 trucks to demonstrate a demand-responsive logistics system based on smart devices. 

"The smart load management system is expected to not only improve structural problems in cargo logistics, but also improve working conditions by reducing the labor intensity of daily logistics delivery drivers," said Kim Won-yeon, head of Incheon's Logistics Policy Division.

If you apply on your mobile through the cold storage sharing service platform, you can rent an installed or visit-type cold storage for as long as you need, and you can check the storage temperature and abnormalities of the cold storage at all times using the loT.

The main businesses include ¡ãInstalled cold storage sharing service ¡ãVisited cold storage sharing service ¡ãCold storage sharing service platform construction and operation ¡ãCold storage loT monitoring service.

The installed cold storage sharing service is a service that allows small and medium-sized businesses that need to store fresh food, such as traditional market vendors, to apply for a mobile cold storage through mobile, install a cold storage in an idle space around the business, use it for as long as they need, and return it.

The door-to-door cold storage sharing service is a service that builds a cold storage demonstration center in an idle space in the city center, and customers who need cold storage can visit it directly and store fresh food for as long as they want.

The cold storage sharing service platform business is a business that builds and operates a platform where customers can apply for mobile cold storage installation services or reserve a cold storage space on their mobile phones.

The cold storage loT monitoring service is a service that allows you to check the cold storage temperature data and abnormalities at all times.

Cho Young-tae, head of the New Airport Promotion Division of Busan City, said, "Through this support project, small and medium-sized small businesses that have had difficulty securing cold warehouses due to financial difficulties will be able to use cold warehouses, minimizing inventory losses due to the disposal of fresh food, and reducing rent and transportation costs incurred by using remote cold warehouses." "In particular, it is expected to contribute to the establishment and spread of a cold chain logistics hub base that provides fresh and safe food." 

Gimcheon City is conducting a public parking lot-based living logistics win-win platform demonstration project to resolve apartment delivery conflicts. 

Currently, there is no logistics center in Gimcheon City, which is a vulnerable logistics area, and delivery efficiency is low, as courier packages are delivered over medium and long distances every day from logistics centers located in neighboring areas such as Gumi, 37 km away. Therefore, it plans to build a logistics center using public parking lots to solve certain daily logistics and increase delivery efficiency.

In addition, the underground parking lot of an apartment building is about 2.3 meters high, and delivery trucks with a height of 2.5 meters cannot enter, so couriers have traditionally delivered packages through the ground. However, many apartments have recently banned ground access for safety reasons, leading to social problems such as courier disturbances in some areas such as the Seoul metropolitan area. 

As an alternative, the company will utilize cargo electric bicycles, an eco-friendly delivery device, to demonstrate safety and efficiency in apartment areas as well as narrow alleys.

"We will improve delivery efficiency through a logistics center built in a public parking lot, and preemptively respond to rapidly changing life and logistics environments such as reducing daily complaints such as traffic accidents and difficult delivery of couriers through eco-friendly delivery devices, such as cargo electric bicycles, and carbon reduction," said Gyeongbuk Deputy Governor Lee Dal-hee.

On the other hand, Incheon City will expand the Small Business Joint Logistics Center, which was implemented last year as a demonstration project for digital logistics services, to reduce the burden of shipping costs for small businesses that are experiencing difficulties in same-day shipping and same-day delivery due to small courier volumes.

Despite the revitalization of the online market, most small businesses are struggling to secure logistics competitiveness. In fact, medium and large companies can contract with couriers for lower delivery rates, but small businesses with small shipments find it difficult to even sign a delivery contract. Even if they can, they have to bear relatively high delivery costs and are unable to offer same-day delivery, which is popular among consumers.

As a result, Incheon City has been operating a joint logistics center for small businesses since July last year, and the number of contractors increased from 133 at the end of July to 560 by the end of December, and the number of deliveries increased from 585 in July to 7,807 in December, confirming the increased participation of small businesses and the feasibility of the business.

The project is characterized by lowering the unit price of delivery by signing a unit price contract with a courier service in batches by bundling small volumes shipped by individual small businesses into one, and increasing logistics accessibility so that even small businesses with only one shipment can use the delivery service. It also improved its aggregation system by considering the volume of goods by day of the week, enabling same-day delivery, which was previously impossible for small businesses.

If you use a regular courier in the market, you have to pay an average fee of KRW 4,400 for same-day delivery and KRW 3,520 for general delivery, but if you use Incheon City's Small Business Joint Logistics Center, you can get same-day delivery in Incheon (excluding Ganghwa and Ongjin), Seoul, and Bucheon for KRW 3,500, and general and fresh delivery nationwide for KRW 2,500 and KRW 3,500, respectively. This is about 25% cheaper than the average delivery fee in the market.

In response, Incheon City plans to expand the joint logistics center for small businesses from February 1, expanding the number of participating companies from 560 to 1,000, and support the production of low-cost eco-friendly delivery boxes in the first half of the year. In addition, in the second half of the year, the city will also promote a pilot project for home delivery and five-hour neighborhood delivery using Incheon Subway stations.