Financial Approach for Solving Stakeholders’ Conflicts of Interests in Port Redevelopment: Incheon Inner Port

This paper presents a conflict solving model to resolve different stakeholder demands in the port redevelopment of the Incheon Inner Port. The different interest groups involved in this current project in South Korea include the land owner of Incheon Port Authority (PA), governmental regulator of Ministry of Maritime and Fishery (MOMAF), private port interests, port labor, business interests and port neighborhood near target area in port. TOCs are in favor of new terminals to maintain their business, while the PA has concerns about the financial burden of creating replacement terminals. The model used for solving conflicts between TOC and PA is a multi-criteria one of BC (Benefit and Cost) ratio, Net Present Value and Internal Risk Return. The analysis provides a transparent explanation to all parties that there is not a viable financial solution for creating new berths. The results are also important contribution to the stakeholder engagement process with port labor, government, business interests and neighborhood community.