Yeosu Gwangyang Port Authority(YGPA) is holding the 7th ‘International Gwangyang Port Forum' from 15th until 17th August at the Renaissance Hotel, Seoul marking their 1st anniversary.

Currently the port of Gwangyang is ranked 16th in the world ports based on annual container handling capacity of 5.48 million TEUs boosted by high-tech container terminals and huge hinterlands.

Just in time for the forum, we had an opportunity to interview Mr. Lee Sang-jo, the president of YGPA and asked some questions about the current issues of the port.

Q : Congratulate on 1st anniversary of YGPA! Could you give us a description of your accomplishment for the past year?

We have concentrated on laying foundation for the stable growth over the past year. Total 234 million tons of cargoes(container throughput 2,085,000 TEUs) were handled in 2011, which indicates the port remained 16th in the world ports.

This year there have been a number of negative factors including eurozone crisis, China's economic downturn and truckers' strike, nevertheless the container throughput(1.23 million TEUs as of late July) still shows almost the same level as last year.

We have also carried on aggressive marketing campaign to secure traffic, which consequently lead to the increase in weekly callings from 72 to 75 as well as new opening of Russian route. The callings of ultra large vessels such as Maersk's 15,500 TEU and MSC's 14,000 TEU class container ships were another achievement.

The activities to attract investment in the hinterland are producing some tangible results as well. 25 logistics companies and manufacturers are preparing to enter the 1.95 million㎡ sized eastern hinterland complex, which was completed in 2008 and now 100% rented.

As shown in the case of Mexichem,  a global component producer  which decided to invest 300 billion Won in the west hinterland complex that was completed last month, the port of Gwangyang is now trying to transform into the high value added port.

Q : As the president of YGPA, what would be your corporate strategy?

The port of Gwangyang is surrounded by rather poor transportation infrastructure and deviates from the central development area, which fundamentally makes it difficult to create cargoes.

In spite of such conditions, we made 2009 as the first year of 'No Strike' port and brought the early opening of Jeonju-Gwangyang motorway forward in 2010. Further, we helped port operators get out of chronic deficit. This year we wish to build a basis for the development of regional economies including the port of Gwangyang by attracting sound enterprises.

Q : Have you found something to be desired since the inauguration of YGPA?

Th container handling traffic in the port of Gwangyang recorded more than 2 million TEUs for two consecutive years, that is 2,088,000 TEUs in 2010 and 2,085,000 TEUs in 2011.

Particularly total cargo traffic surged by 6.8% from 216.5 million tons in 2010 up to 234 million tons in 2011. Unlike the port of Busan and Ulsan respectively specialized in container handling and petrochemical products, the port of Gwangyang is an integrated port which covers not only containers but petrochemical and steel products.

In this respect, the port of Gwangyang should be evaluated in terms of total cargo traffic rather than containers only.

Q : What do you think will be the problems to be solved for the future?

It is true that Gwangyang has been underestimated as a cheap port due to low name-recognition, however, we will try to elevate it to a valuable and profitable port so that global shipping companies and enterprises could feel free to come and invest here.

Meantime, we have a huge task to solve the debts totalling 1 trillion and 46.7 billion Won that was transferred to YGPA at the time of inauguration. Budget reduction is considered to be an only solution and we are discussing it with the government consistently.

Strategy to increase container traffic is being prepared too. Apart from the port sales campaign targeting big shippers and shipowners, we are also promoting occupancy of hinterland complex reaching 3.88 million㎡ by attracting blue chip manufacturers and logistics companies.

Q : Please tell us about your marketing activities, if any, differentiated from other ports?

There is tough competition among the global ports in line with reformation of worldwide carriers and deploying ultra large container ships.

At the beginning of the inauguration, YGPA has reinforced marketing staff and has carried on one-to-one marketing campaign to maximize the efficiency in attracting shipowners and shippers. We are going to try CEO's hands-on approach to marketing activities as well as establishing strategic partnership.

YGPA held a road-show aimed at Japanese national shipping lines and Korean feeder lines and did some port sales activities towards Southeast Asian shipping companies. We are also promoting marketing campaigns for major shippers and shipping lines in China via direct visit to their head offices.