Surpassing 2.5 Million TEUs

Participants are vowing to reach 3,000,000 TEUs early at Incheon Port while shouting a catchphrase in a ceremony commemorating 2.5 million TEU annual container traffic volumes at Incheon Port on Dec. 16.
Participants are vowing to reach 3,000,000 TEUs early at Incheon Port while shouting a catchphrase in a ceremony commemorating 2.5 million TEU annual container traffic volumes at Incheon Port on Dec. 16.

 

On December 16, participants are cheering and clapping while watching a container loaded on a container ship at Incheon New Port HJIT in a ceremony commemorating 2.5 million TEU annual container volumes at Incheon Port on Dec. 16.
On December 16, participants are cheering and clapping while watching a container loaded on a container ship at Incheon New Port HJIT in a ceremony commemorating 2.5 million TEU annual container volumes at Incheon Port on Dec. 16.

 

Container cargo volumes at Incheon Port exceeded 2.5 million TEUs for the first time ever.

The Incheon Port Authority or IPA (www.icpa.or.kr.IPA) proclaimed a new voyage to make the top 30 ports in the world in a ceremony to celebrate the achievement of 2.5 million TEU annual container volumes at Incheon New Port located in Songdo-dong, Yeonsu-gu, Incheon, on December 16.

Incheon Port's annual container volume surpassed 2.5 million TEUs as of December 16, the largest-ever volume in the history of Incheon Port, in 11 years since hitting 1 million TEUs in 2005 and in three years since reaching two million TEUs in 2013.

With this trend going, Incheon Port is expected to handle a total of 2.68 million TEU container volumes by the end of this year. This is a 12% increase from last year's 2.37 million TEU.

According to the IPA, container volumes on a steady increase at Incheon Port are attributable to the efforts for negotiations, cargo volumes and developing new routes to improve service quality through joint efforts made by the IPA, the related governmental authorities, such as port, quarantine and customs authorities, and the private port-related organizations like port operators among others.

"It is very encouraging and proud that Incheon Port accomplished excellent results despite economic recessions at home and abroad and a downturn in the shipping market,” said Yang Jang-seok, vice president of the IPA’s Management HQ. Yang expressed his gratitude to customers such as shipping companies, shippers and forwarders and Incheon Port workers and their families.  

"I hope that Incheon Port will become a greater port to befit the era of three million Incheon citizens without resting on its laurels," said Lim Hyun-churl, head of the Incheon Regional Office of Oceans and Fisheries."

More than 100 people attended the ceremony including main shippers, shipping companies and dock operators. In the afternoon, a seminar on 'Logistics Development Strategy for Incheon Port' was held by Incheon Regional Maritime Affairs and Fisheries at the Songdo International City Global Campus of George Mason University. The seminar participants made presentations and had discussions on the development of Incheon Port to open a three million TEU era.

Marketing by Cargo Type and Customized Service

Incheon Port was able to bring off the feat of making new history of 2.5 million TEU in three years since chalking up 2 million TEUs thanks to the related organizations’ joint efforts for service improvements in the areas such as deliberations, cargo service marketing and developing new routes.

In particular, the IPA focused on tailor-made marketing to directly meet domestic and overseas shippers in order to attract high value-added frozen or chilled cargoes, such as livestock products and fruits, and tried to expand the volumes of cargoes through cargo diversification. The IPA focused on marketing activities that satisfy customers by strengthening customer services that address the difficulties of shippers and give them feedbacks for them.

In the process, concerns about quarantine raised by shippers in the food importation process brought about a shortened quarantine time and a simplified process, and the frequency of quarantine rose from once to twice per day through collaboration with quarantine authorities.

In addition, an analysis marketing was also carried out, targeting cargo types which can stably result in large quantities of cargos such as scrap iron, waste paper, beans, feed additives, used cars, and cosmetics. The IPA conducted comprehensive marketing activities that promote the services and use of Incheon Port by setting target items via statistical analysis of sites and ports used for import and export cargos, visiting shippers and publicizing Incheon Port’s services and benefits.

As a result, Incheon Port handled more high-value-added frozen refrigerated goods such as fresh fruits and livestock products, including orange, lemon, and other products from the United States and saw a steady increase in the volume of national stockpiling products such as US beans which guarantee steady volumes.

Expanding Choices for Shippers by Diversifying Route Services

Another secret of Incheon Port’s achieving 2.5 million TEUs was to extend shipping service routes to the Americas and the Middle East by expanding customers' choices, without being complacent with services within the Asian region.

In particular, this year, the IPA divided the organization of the marketing team into regional teams, and made more contacts with the headquarters and Asia-Pacific regional main offices of global and major shipping companies located in Europe, Hong Kong, China, Japan and Australia, in addition to the Korea’s national flag carriers.

As a result, the IPA’s operation of the North American route, which had once fell into a crisis of being shut down, has been rationalized through fleet rationalization, and now its operation is on track. In June, a Middle East route service was launched, adding six new routes to Incheon Port. Incheon Port currently offers 45 routes, including three routes to the Americas, the Middle East and Africa.

Cargo Growth at Incheon Port Accelerated

Incheon Port’s cargo volumes have been on a steady increase since reaching 1 million TEUs for the first time in 2005 when the IPA was established. The IPA reached 2.5 million TEUs in three years after hitting 2 million TEUs in 2013. Incheon Port aims to achieve 3 million TEUs in 2018.

The container cargo volume growth at Incheon Port accelerated thanks to Incheon New Port located at the southern end of Songdo International City which opened in 2015. The opening of the new port made it possible to expand cargo services such as provision of various route services and handling of fresh food cargos.

Incheon Port is expected to handle 2.68 million TEUs in total, surpassing the mark of 250 million TEUs, by the end of this year, showing a possibility of establishing itself as a major and hub port for regions surrounding the Yellow Sea.

On the other hand, China, the largest trading partner of Incheon Port, was the country that led an increase in Incheon Port’s cargo volumes this year. According to the IPA, its cargo volumes for trade with China stood at 1.5 million TEUs by December 15, which is an increase of 10% (137,407 TEUs) from the previous year.

In the same period, the IPA saw a large increase (25.2%) in cargoes for trade with Vietnam compared to the previous year by handling 220,000 TEUs. Taiwan, the United States and Iran also recorded 96,000 TEUs, 19,000 TEUs and 9,000 TEUs respectively.

 

 

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