South Korea’s Gwangyang Port, the 67th busiest container seaport
globally, has seen a slowdown in processing volumes that worries
local officials.

Representatives called out the port’s likely 2017 volume shortfall
during a parliamentary audit.

A legislative representative for the area that includes Gwangyang
said that volumes were dropping for the port in recent years and that
more funding was needed.

There were less than 2.3 million TEUs processed at Gwangyang in 2016,
a decrease of 0.5% in that year, and a goal of 2.33 million TEUs will
likely not be met in 2017.

Read a related paper from Busan Port about how the port has overcome
shipping industry dillemas with improvement projects.

The bankruptcy of South Korea’s largest carrier, Hanjin Shipping,
has led to industry changes, such as alliances which negatively
impacted Gwangyang Port.

Though companies in shipping alliances used to make up 85% of
Gwangyang Port’s throughput, now they only make up 35%.

Compared with South Korea''s largest port, Busan, which received the
equivalent of US$12.9 million to help it attract transit cargo,
Gwangyang got around the equivalent of $4.7 million.

Busan Port also obtained the equivalent of $2.6 million from its
local government, whereas Gwangyang Port got $115,000 from its own
local government.

Operators of a planned expanded terminal at the port in 2016 included
GICT, Sebang and Hanjin Shipping, Hutchison Korea, Dongbu Express,
Korea International Terminal and CJ Korea Express.

Representative Lee Gae-ho said: "There were less than 2.3 million
TEUs processed at Gwangyang last year, and the goal for 2.33 million
TEUs this year is also unlikely to be met.

"The government at one point had moved to build a two-port system
involving Gwangyang and Busan.

"There needs to be enlarged state assistance to Gwangyang Port to
keep the port viable and allow it to grow."