Yeosu Gwangyang Port Records First Place in Export-Import Cargo Volume for First Half of 2022

Record of 101 Million Tons... Solidifying Status as Korea's No.1 Export-Import Port

Accounting for 20.4% of Nationwide Port Export-Import Cargo Volume

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] Yeosu Gwangyang Port Authority (President Park Seong-hyun, YGPA) announced on the 23rd that the export-import cargo volume of Yeosu Gwangyang Port in the first half of 2022 reached 101 million tons, solidifying its status as the number one export-import port in South Korea.

During the first half of this year, Yeosu Gwangyang Port handled a total cargo volume of 101 million tons, including 72 million tons of petrochemical products, 45 million tons of steel-related products, and 1 million TEU of containers.

This figure accounts for one-fifth (20.4%) of the nation's total export-import cargo volume, ranking first nationwide.

Following were Ulsan Port with 82 million tons (16.5%), Busan Port with 81 million tons (16.4%), and Incheon Port with 61 million tons (12.3%).

YGPA evaluated that Yeosu Gwangyang Port's high share in South Korea's export-import market reflects its status as the country's largest industrial port.

Yeosu Gwangyang Port has established a unique position as the largest all-weather comprehensive port in South Korea, capable of handling most cargo types including petrochemical products from the Yeosu Petrochemical Complex, steel cargo from the Gwangyang Steelworks, automobiles, and containers.

Accordingly, YGPA is making various efforts to further solidify its status as the number one export-import port in the country.

Key projects YGPA is focusing on include developing port hinterland complexes to become a self-sufficient cargo-generating port, creating a converged port ecosystem through this development, developing and operating the nation's first R&D marine industry cluster, promoting fully automated terminals, and attracting excellent domestic and international companies to Yeosu Gwangyang Port.

However, YGPA explained that the current situation is not entirely favorable due to internal and external adverse factors.

Port cargo volume is declining due to a triple burden: reduced shipping capacity caused by China's city lockdowns and the Russia-Ukraine war, decreased global demand amid inflation and recession concerns, and reduced punctuality of regular container ship services due to port congestion in major countries such as the U.S. and China.

As a result, container cargo volume in the first half of this year decreased by 1.0% to 1 million TEU compared to the previous year, but the decline was minimized, which is also being recognized.

During the same period, container cargo volumes at other ports decreased by 2.1% at Busan Port, 9.1% at Incheon Port, and 18.2% at Ulsan Port.

The minimized decline in cargo volume at Yeosu Gwangyang Port is attributed to comprehensive marketing activities conducted by CEOs, executives, and staff targeting both domestic and international shipping companies and cargo owners.

In particular, YGPA analyzed that a strategy of attracting targeted cargo by combining the current domestic and international situation with the strengths of Yeosu Gwangyang Port was effective in responding to increased uncertainties.

In fact, YGPA has recently focused marketing efforts on attracting container cargo by targeting irregular shipping lines, empty containers, and transshipment cargo, paying attention to the recent decline in vessel punctuality.

In the first half of this year, 109 irregular ships (130,000 TEU of irregular cargo) were attracted, a 289.3% increase compared to 28 ships (40,000 TEU) in the same period last year.

Irregular ships refer to container ships that called at Gwangyang Port as an alternative due to difficulties entering Chinese ports caused by congestion.

Since irregular ships create additional added value beyond regular container services for these reasons, YGPA plans to focus even more on attracting irregular ships in the second half of the year.

Also, while marketing activities in the first half focused on domestic shipping companies to attract transshipment cargo, the target will be expanded to domestic and international alliances in the second half.

President Park Seong-hyun said, “Through the management policy of ‘sales on the ground,’ we were able to minimize shocks and maintain the status of Yeosu Gwangyang Port despite difficult circumstances. We will continue to strive for further development of Yeosu Gwangyang Port by approaching customers and the public with humility and building consensus.”

Meanwhile, Yeosu Gwangyang Port has a wide area (total quay length of 26 km) that allows relatively stable management of container yards, maintaining a container occupancy rate around 60% even when other ports recorded over 90% due to port congestion caused by COVID-19.

Additionally, its geopolitical advantage of being located centrally on the southern coast, directly connected to the Pacific and China, while maintaining calm waters year-round, stands out as a strength compared to other ports suffering from natural disaster damages.

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

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