High expectations on Kwangyang's third anniversary

The Port of Kwangyang has been operating for three years since it first launched the two port system with the Port of Pusan.

Although Kwangyang has experienced more than a fair share of problems since it first started, it has written a new chapter in the history of Korean maritime affairs and ports.
Kwangyang is positioned under the influence of South Cholla and South Kyoungsang provinces, isolating itself from the outside. However, it is now growing to compete with the Port of Pusan.

Since first opening in July 1998, the Port of Kwangyang is fast consolidating its position as a major hub port in Northeast Asia.

The Korea International Trade Association (KITA) found that Kwangyang handled 42,318 TEU in its first year. However, cargoes soared to 665,637 TEU in 2000, 16 times as much as in 1998. The number of cargoes handled this year is assumed to stand at around 900,000 TEU, a 35% jump in comparison to last year.

As of 2000, Kwangyang followed the Port of Pusan in reputation, becoming known as the number 2 container port in Korea, taking a 7% share in nationwide container cargoes, with Pusan taking 82.7%. Inchon lagged behind Kwangyang with a 6.7% share.

It has been pointed out that Kwangyang has several advantages over Pusan, having already shown numbers beyond popular expectations, with respect to import and export cargo handling. The most favorable factor is commonly thought to be logistic cost savings.

Trading companies in Metropolitan areas as well as Seoul can save 65,000 won per 20-foot-equivalent container (TEU) by using Kwangyang rather than Pusan.

Shippers in the central areas of Korea, including Taejeon, also cut down on their logistics by 114,000 won, while shippers in Kwangju areas save a whopping 272,260 won per TEU.

KITA predicted that if 20% of container cargoes out of Metropolitan and central areas went to Kwangyang instead of Pusan, it could potentially save shippers an estimated 40 billion won per year.

The increased use the Port of Kwangyang beyond popular expectations is based on several key incentive systems as well as its smooth operating system. The Port of Kwangyang offers free wharfage and container tax, as opposed to those being charged in Pusan.