News & Notice
Gangneung, to Become Logistics Hub in Pan-Eastern Sea Area with Expansion of Okgye Port
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- Date : 2023-01-20
- Transitioning into a state-managed trading port by securing target container cargo volume -
Gangneung City plans to accelerate the development of Okgye Port with the aim of launching container liner services and establish C.I.Q. (customs, immigration, quarantine) offices in the first half of the year 2023, thereby speeding up the realization of the Maritime Silk Road Economic City, a key administrative goal of the 8th Gangneung City Council.
Since its establishment in 1991, Okgye Port has contributed to the development of the local economy by serving as a base for the import and export of bulk cargoes such as Halla Cement’s cement and bituminous coal. It is preparing to leap forward as a logistics hub in the Pan-East Sea area by taking on additional port functions.
As the first step, in order to secure a stable container import and export volume, negotiations are underway with relevant institutions and companies in order to handle some of the wood pallets, which are imported in the amount of up to 1.2 million tons annually and used as eco-friendly fuel for thermal power plants in the region (Yeongdong Eco Power Plant and Gangneung Eco Power Plant), as container cargo via Okgye Port.
Some of the berths in Okgye Port has been functionally changed from coal piers to multi-purpose piers capable of handling containers, and there are plans to focus on expanding port infrastructure by creating a container yard and re-compartmentalizing the port.
Based on increased container traffic, efforts will be made to persuade the central government so that it can be reflected in the master plan for national ports prepared every 10 years to promote the transition of Okgye Port into a state-managed trading port and to pursue its expansion (10 berths, 100,000-ton berthing).
In consultation with Halla Cement, Gangwon-do Province and the central government, Okgye Port will be developed into a national port serving as a logistics base in the Pan-East Sea region to drastically reduce the logistics costs for Gangwon-do Province, which are currently 1.7 times higher than the national average, and create quality jobs, thereby contributing to the development of the local economy.
Gangneung is also expected to emerge as a railway transportation hub in the Pan-East Sea region with the establishment of a wide-area railway network, including the Gangneung-Busan Line set to be completed in 2024 and the Suseo-Gangneung Line and the Donghae Bukbu Line (Gangneung-Jejin, Goseong) in 2027.
By building the railway network in connection with the development of the Okgye Port, it will be possible to provide one-stop services for the customs clearance and logistics of containers imported into and exported from the East Coast Free Economic Zone Okgye District, Okgye General Industrial Complex, as well as the Gangneung Science Industrial Complex, Jumunjin Agro-Industrial Complex, Gangneung Small and Medium Industry Complex, and e-Hub Logistics and Industrial Complex scheduled to be built in Gujeong-myeon, Namgangneung as well as containers exported from Seoul Capital Area to Russia, Europe, western Japan, Taiwan, and Southeast Asia.
Meanwhile, on January 14 (Sat.), Gangneung Mayor Kim Hong-kyu will visit Okgye with related officials for in-depth discussions regarding the port construction.
“Okgye Port in Gangneung, one of Korea’s 31 trading ports, only handles bulk cargoes necessary for cement production and trade, which is a waste of the space that can contribute to the development of the local economy,” an official from Gangneung City Government said before adding, “The extension work on the port is expected to bring positive ripple effects such as reduction of logistics costs, creation of a large number of jobs, and population growth.”
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