Yeosu Gwangyang Port Authority Selects Yeocheon NCC as Operator of Sapo Pier 1

Agreement Reached Among Operators for SYTT to Perform Wharf Cargo Handling and Related Tasks

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] The operator of Sapo 1st Wharf at Gwangyang Port, which had frequent disputes due to joint operation, has been unified into a single operator.

Yeosu Gwangyang Port Authority (President Park Seong-hyun, YGPA) announced on the 13th that Yeocheon NCC was selected as the sole operator of Sapo 1st Wharf at Gwangyang Port, and SYTT agreed to handle cargo handling and related tasks at the wharf.

[Photo by Yeosu Gwangyang Port Authority]

Located in the Yeosu National Industrial Complex, Sapo 1st Wharf is the largest naphtha handling wharf in Korea, importing up to 9 million tons of naphtha annually, which is a basic raw material for petrochemical product production.

As Sapo 1st Wharf was built with private capital, the three petrochemical-related companies?Yeocheon NCC, SYTT, and Lotte Chemical?jointly operated it, frequently causing disputes over operational rights as each claimed priority for their own cargo handling.

Additionally, separate from wharf operations, issues regarding adjustments to storage facility usage fees led to legal disputes among the related companies lasting over 10 years, causing disruptions in port operations.

Accordingly, YGPA, judging that securing safety at the port cargo handling site is urgent following the enforcement of the ‘Port Safety Special Act,’ established a ‘Self Safety Management Plan’ and, through multiple consultations and discussions with the three companies, reached this outcome.

According to this agreement, the three operating companies mutually withdrew all lawsuits related to storage tank facility usage fees that had been ongoing since 2013, and established a foundation for mutual trust.

President Park Seong-hyun stated, “With the selection of a single operator, the safety management system is unified, enabling prompt response and prevention in case of major accidents, and the entities responsible for enforcing the ‘Port Safety Special Act’ and port security-related laws are clearly defined, which is expected to lead to efficient wharf operations.”

He added, “The amicable resolution of disputes among operators that lasted for 10 years will greatly help revitalize Yeosu Gwangyang Port, and we will do our best to ensure the smooth supply of naphtha, the basic raw material for petrochemical products.”