The Last 3 Years of South Korea's Top Export-Import Gateway Ports, Yeosu and Gwangyang

Achieving B Grade in Government Management Evaluation for 3 Consecutive Years

Recognized for Excellent Management Performance Externally

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] Cha Min-sik, President of Yeosu Gwangyang Port Authority (hereinafter referred to as the Authority), marked his 3rd anniversary in office on November 4.

The year 2018, when he took office, was the year Yeosu and Gwangyang Ports achieved a total cargo volume of 300 million tons, solidifying their position as South Korea’s number one export-import gateway ports. President Cha emphasized that “Yeosu and Gwangyang Ports should not stop there but grow into an industrial core port that contributes to national economic development by fostering them as a turning point where maritime logistics shift to land logistics, and as an advanced base of the Y-Route extending to the Chinese and European continents through the convergence of various production materials.” Here, we look back on the Authority’s footprints and achievements over the past three years under his leadership.

▲ Presentation of the Yeosu·Gwangyang Port Port-IST Agenda

In 2020, the Authority announced the ‘Port-IST Agenda,’ presenting a mid- to long-term vision for the next 100 years of Yeosu and Gwangyang Ports. The 「Port-IST Agenda」 focuses on expanding port hinterlands and facilities within the Gwangyang Bay area to build a self-sufficient cargo-generating port △“Industrial-Port,” developing fully automated container terminals and strengthening R&D functions based on the 4th Industrial Revolution △“Smart-Port,” and presenting a future vision for Yeosu Port on its 100th anniversary (2023) while fostering the southern coast as a marine tourism hub △“Tourism-Port.” It concretizes the dreams of the port ecosystem and local community and contains the blueprint for development plans to realize them.

▲ Securing mid- to long-term investment capacity through debt reduction

At the time of the Authority’s launch, the debt ratio was 79%, but through company-wide management improvement efforts, it was reduced to 24.4% by 2020. The Authority also achieved net profits for six consecutive years since 2015, establishing a stable management foundation and securing investment capacity to realize the ‘Port-IST Agenda.’

▲ Additional acquisition of port hinterlands to build a self-sufficient cargo-generating port

The status of being South Korea’s number one export-import port was built alongside the development of industries in the Gwangyang Bay area such as steel and petrochemicals. Therefore, fostering hinterland industries is paramount for revitalizing Yeosu and Gwangyang Ports. The Authority is currently advancing detailed design with the goal of creating a 3.26 million m2 Yulchon convergence logistics complex by 2029. It has also prepared plans to secure 1,973 m2 of port hinterland by 2040 through projects such as the development of the northern port hinterland (110,000 m2) and converting the Sepung Industrial Complex (40.7 m2) into port hinterland.

▲ Continuous development of port facilities responding to customer cargo demand

Alongside securing port hinterlands, the Authority is constructing the 2nd petrochemical berth to meet the increasing cargo demand for petrochemical products. Other projects include expanding petrochemical port facilities and renewing aging berths, which have been incorporated into government plans to develop Yeosu and Gwangyang Ports into ports with no congestion and high productivity.

▲ Promotion of Korea’s first fully automated container terminal development

President Cha has devoted exceptional efforts to building smart ports. The Gwangyang Port 3-2 phase fully automated container terminal development project was selected as a key project under Korea’s Digital New Deal and is currently undergoing a preliminary feasibility study. This will not only enhance the competitiveness of Gwangyang Port’s container terminals but also promote the acquisition of domestic technology and technology transfer to other terminals, leading the smart transformation of the nation’s ports.

Furthermore, the importance of development projects for national progress, such as securing port hinterlands, expanding port facilities, and building automated ports, has been recognized by the government, resulting in achievements like establishing a standing executive-level Development Project Headquarters.

▲ Integration of container terminal operators

To enhance the competitiveness of container terminals by sharing cargo handling equipment and berths among operators and preventing excessive competition, the Authority consolidated three operators into two in 2020. This was the first domestic integration without government support, completed in the shortest time, and with 100% employment succession of 261 workers. It is considered a major achievement that significantly improved the competitiveness of Gwangyang Port’s container terminals.

▲ Establishment of an ESG management system for the sustainable development of Yeosu and Gwangyang Ports

With the recent spread of COVID-19 and strengthening of international environmental regulations, ESG management has become a key issue. To ensure the sustainable development of Yeosu and Gwangyang Ports, the Authority established an ESG management system. It set ESG management goals and detailed plans for 2030 and declared its vision and goals at the 10th anniversary ceremony last August. Additionally, it created an “ESG Committee” within the board of directors to lay the foundation for systematic ESG management.

▲ Realization of ESG management practicing values of safety, eco-friendliness, coexistence, and integrity

President Cha prioritized values of safety, eco-friendliness, coexistence, and integrity above all. He established a dedicated safety organization and actively introduced 4th Industrial Revolution technologies such as AI-based ship berthing monitoring technology in the safety sector. The Authority operates a thorough quarantine system, maintaining zero COVID-19 cases within the port.

Last year, 38% of the port’s energy consumption was replaced with renewable energy, and over 80% of cargo handling equipment was converted to eco-friendly equipment.

Moreover, by operating “Job Square,” a local community job creation platform that matches port logistics companies with young people, the Authority received a commendation from the Minister of Employment and Labor. This year, it is expanding the value of “coexistence” by implementing a 18.6 billion KRW port ecosystem support policy to overcome COVID-19. Alongside this, it has taken the lead in eradicating power harassment and spreading a culture of integrity among external customers, achieving the highest public institution integrity rating for two consecutive years.

Based on these achievements, the Authority has been recognized externally for excellent management performance, achieving a B grade for three consecutive years in government management evaluations since President Cha’s inauguration.

Meanwhile, the Authority plans to enhance Gwangyang Port’s competitiveness through automation development of container terminals, establishment of a One-Terminal system, and expansion of national shipping company calls. It will continue to expand port hinterlands in the Gwangyang Bay area and attract global leading companies, strengthening its role as an industrial core port growing alongside regional industries. Additionally, it is accelerating the ‘Hydrogen Station’ project to build a circular hydrogen transport network within the port as an eco-friendly leading port.

Reflecting on the past three years, President Cha said, “The achievements were possible thanks to the hard work of our employees,” and added, “I look forward to the future of Yeosu and Gwangyang Ports as an industrial core port contributing to national economic development and as the cradle of the G3, standing shoulder to shoulder with global economic powers.”

Gwangyang = Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

This content was produced with the assistance of AI translation services.