Gwangyang Port Eyes 'Logistics Hub of Northeast Asia' Label

Sets its sights on rising to the top 10 in global port rankings by 2011

Gwangyang Port, with the nation's second biggest container wharves, is famous for its historical spot where Adm. Lee Sun-shin died while successfully repelling Japanese invaders in the Noryang Sea Battle.
Once a spot of strategic importance to defend the nation from a military perspective, Gwangyang Port is striving to make itself a value-added one with the goal of evolving into a logistics hub that will serve as the nation's breadwinner.
The Gwangyang Bay area boasts the Gwangyang Steelworks with the world's largest crude steel production capacity and is surrounded by the Yeosu Chemical Complex. Gwangyang Port promises to be among the global top 10 with a capacity of 10 million TEU (20-foot equivalent units) in 2012 when Expo 2012 Yeosu takes place. In particular, the port proves to be a heavenly port with a profound depth of water, as the formidable Typhoon Maemi of 2003 did not wreak havoc on stevedoring activities. The port is expected to see its cargo handling capacity surging to 2 million TEU by the end of this year from 27,000 TEU in July 1998 when the port first opened. It was in January 2005 that the Gwangyang Port container wharves and hinterland logistics complex were designated as a free trade zone to boost foreign direct investments, the promotion of international trade and the development of the region.
The Korea Container Terminal Authority (KCTA), with President Lee Sang-jo at the helm, responsible for managing and operating the port container wharves and hinterland logistics complex, built 16 berths at Gwangyang Port and 12 berths at Busan Port for a total of 28 berths, thus easing clogging and contributing to regional and national development.
KCTA's jobs include the continuous development, management and operation of Gwangyang Port container wharves, the attraction, management and operation of tenant companies for the hinterland logistics complex and its joint logistics center as well as the construction of the Gwangyang Port joint logistics center.

FREE TRADE ZONE, A CENTER OF GLOBAL TRADE
The Gwangyang Port hinterland logistics complex is a free trade zone that is expected to serve as an international logistics business Mecca by housing global logistics juggernauts. The construction of the eastward hinterland logistics complex covering 1.95 million sq. meters and costing 285.7 billion won has been already completed, and the construction of the westward hinterland logistics complex covering 1.93 million sq. meters and costing 387.5 billion won is under way.
The KCTA's construction of the port hinterland logistics center established a foundation for creating freight volumes by attracting global logistics giants. Twenty-three tenant companies, including Samsung Tesco, have already moved into the eastward hinterland logistics complex and the KCTA attracted 230 billion won of investments. If and when the westward hinterland logistics complex project is completed by 2011, the KCTA expects the free trade zone to raise its total space to 3.88 million sq. meters and see the attraction of additional tenant global logistics companies, creating an additional 1 million TEU of freight.
A public notice for attracting additional tenant companies for the first part of the eastward hinterland logistics complex project phase one and the second part of phase two will be released within this month. The KCTA will rent 45,845 sq. meters out of the first lot of Phase II ― 10,646 sq. meters in Zone A and 35,199 sq. meters in Zone B as well as 113,051 sq. meters out of the second lot of Phase II ― 38,000 sq. meters in Zone C and 75,051 sq. meters in Zone D. Tenant company applicants can apply to rent a minimum of 3,306 sq. meters (1,000 pyeong).
The rental of the site is an extraordinarily low 30 won per sq. meter, and rent is guaranteed for a maximum of 50 years.
Korean and foreign companies are allowed to do business freely due to the hinterland logistics complex being a free trade zone. Foreign tenant companies are given preferential treatment in moving with foreign manufacturing companies with investments of $10 million and logistics companies investing $5 million taking a 100 percent tax exemption in corporate tax, income tax, acquisition tax and property tax, varying according to periods.

GWANGYANG PORT, A BUSINESS HUB OF KOREA, CHINA AND JAPAN
The Gwangyang Port Hwanggeum Logistics Center is expected to play a role as a logistics center of Korea, China and Japan, thus invigorating the port with the goal of making the Gwangyang Bay area the logistics hub of Northeast Asia.
The Hwangguem Logistics Center, departing from the simple logistics feature as a container freight station (CFS), is responsible for a multitude of logistics jobs ranging from classification to assembling, fabrication and exhibition. The center, covering 44,326 sq. meters, was opened in April 2008 and is operated by five foreign tenant companies. Its exclusive rental period is 30 years, but it can be extended by another 20 years, depending on negotiations between the KCTA and the tenant companies. The center is to be expanded to a third-floor structure to meet future demands. The KCTA has been conducting an aggressive marketing blitz by introducing the Gwangyang Port mileage card system and the volume incentive system to secure a competitive edge in logistics costs. The volume incentive system, which has been in place since 2005 to raise its freight volumes, now applies to shipping companies making new port calls, existing shipping companies, feeder shipping companies plying the waters of Korea, China and Japan, and non-regular shipping companies. Shipping companies, the beneficiaries of the KGPS, which is in effect until the port reaches the 3 million TEU barrier, will be given a mileage equivalent to 2,500 won and 5,000 won per export/import and transshipment TEU, while shippers and forwarders will be offered a mileage credit of 10,000 won for export/import cargo, which can be used as cash.

WORLD MARINE CENTER, LANDMARK SERVICE SUPPORT FACILITY
The World Marine Center, a symbol of the hub port of Northeast Asia, is a service support facility for the convenience of port users and is invigorating the port. The center houses facilities for general affairs for shippers, cargo owners and forwarders, conferences and exhibition facilities, educational facilities for STC-Korea and other amenities. It aims at establishing Gwangyang Port as a one-stop Mecca of international logistics business.

GWANGYANG PORT, WITH A VISION OF A SHIPPING POWERHOUSE
Gwangyang Port is at a watershed moment. Chinese ports are threatening to roil the shipping market at a rapid pace, and in Korea, new ports have sprung up, setting it up it for a crisis or for opportunities.
Now is the time when the nation has to explore ways of realizing Jang Bogo's dream of making Korea a shipping powerhouse.
The nation will have to put priority on building the infrastructure of Gwangyang Port as an advanced logistics center, whose development can be possible with low transportation costs and quality port services, departing from regional rivals. The future of the port hinges on creating freight through the hinterland logistics complex. nw

Gwangyang Strives to Become World's Top Integrated Logistics Service Port
President Lee unveils his management policies after taking office
President Lee Sang-jo of the Korea Container Terminal Authority (KCTA) said the KCTA has an action plan to transform Gwangyang Port into one of the world's top-rated comprehensive logistics service ports.
Asked about his management policies in a recent interview shortly after taking the helm at the KCTA, Lee said, "Departing from the conventional function of only stevedoring and transporting export and import cargo, the authority is striving to develop the hinterland logistics complex to provide integrated logistics services ranging from export and import freight production, fabrication, storage and distribution, and make the port into one offering differentiated and specialized services including hazardous materials treatment tailored to meet clients' needs." He said the KCTA plans to make Gwangyang Port an optimal one for harboring large-sized ships by making the most of the port's favorable location and conditions in accordance with the government's "Two-Port Policy," designed to develop Busan Port and Gwangyang Port as the nation's hub ports and concentrate on marketing activities to diversify international logistics networks. The KCTA is striving to translate into action a marketing-oriented management policy designed to boost the port's cargo handling volumes, he said. nw

Gwangyang has the nation's second largest container wharves. Seen at right is the World Marine Center.