Kwangyang works out as hub for Northeast Asia

The Port of Kwangyang is settling down rapidly as a hub port in Northeast Asia, and enjoying snowballing cargoes after three years of operations as of July 17.

The Korea International Trade Association revealed July 15 that the Port of Kwangyang handled 665,367 TEU last year, up 59.1% over 1999, and is expecting to increase by 35% to 900,000 TEU this year.

Containers in Kwangyang last year shared stood at a mere 7% of nationwide cargoes, far below that of the Port of Pusan, which took an 82.7% share. However, it surpassed Inchon's handling of 610,000 TEU or a 6.7% share out of nationwide cargoes.

A source at KITA said, "Starting the Korea Express Terminal operations as of July, 1998, cargoes at the Port of Kwangyang have snowballed beyond anyone's expectation. That is because the Port of Kwangyang is remarkably competitive."

For most cities in Korea, one of Kwangyang's greatest strengths is its low inland transportation cost compared to Pusan. Of course this does not hold true for Ulsan, Kumi or Pohang.

For example, transportation from Seoul to Kwangyang costs 404,000 won, 40,000 won cheaper than Pusan. Particularly, shippers can save 65,000 won by using the Port of Kwangyang because it doesn't charge container tax or for wharfage.

Container growth accounted for short sailing distances to Southeast Asia and Europe, as well as secured hinterlands as large as 2 million pyoung, helping fast logistic flow over the Port of Pusan where most cargoes have to go through an ODCY (Off Dock Container Yard) because of a lack of space for expansion.

A KITA official stressed that the Port of Kwangyang is possessed with the intrinsic potential to become the hub port in Northeast Asia, inviting general import and export cargoes as well as transit cargoes. Therefore it must follow container port development projects with its schedule as it unfolds, he added.

Container wharves in the Port of Kwangyang will be expanded to 9.32 million TEU in stevedoring capacity by 2011, if they stick to their plan, from the current 960,000 TEU of stevedoring capacities.