Yeosu Gwangyang Port Authority Achieves Port Cost Reduction Through Private Partnership

Conversion of 17 Diesel Transfer Cranes to Electric Engines

‘Catching Two Rabbits’ with Air Quality Improvement and Logistics Cost Reduction

Yeosu Gwangyang Port Authority (President Park Seong-hyun, YGPA) announced that the "Eco-friendly Power Conversion Project for Cargo Handling Equipment," the first public-private joint investment project in domestic ports, is achieving significant results in improving port air quality and reducing logistics costs for operators.

Last year, YGPA proactively invested 4.3 billion KRW in project costs through ESG bonds to convert 17 diesel transfer cranes (T/C), which have a high proportion of fine dust emissions, to electric engines.

Panoramic view of Gwangyang Port container terminal [Photo by Yeosu Gwangyang Port Authority]

In this process, YGPA implemented the public-private joint investment for the first time among domestic ports by partnering with dock operators.

Public-Private Partnership (PPP) is a business model where the public and private sectors cooperate with mutual goals for shared benefits, unlike unilateral support projects.

Through this project, operators improved their financial performance by reducing fuel costs, while YGPA achieved the public interest of reducing fine dust at Gwangyang Port, establishing an innovative win-win business model.

Based on the first quarter results of the eco-friendly power conversion project, YGPA expects an annual reduction of 16,000 tons of greenhouse gases, and participating operators are anticipated to save 2.6 billion KRW annually in fuel costs.

The operators stated that they plan to secure and reinvest resources equivalent to the fuel cost savings to improve productivity, expecting outcomes such as reduced waiting times for cargo vehicles and the introduction of a 24-hour operation system.

Meanwhile, YGPA is transforming Yeosu and Gwangyang Ports into fully eco-friendly ports by promoting not only the transfer crane (T/C) power conversion project but also the installation of emission reduction devices (DPF) on various cargo handling equipment such as yard tractors (Y/T).

President Park Seong-hyun said, "It is encouraging that the projects we have prepared and executed since last year are showing visible results this year," adding, "We will continue to realize a carbon-neutral port through various projects."

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

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