GM Daewoo is facing capacity constraints at its port storage yards for the export of vehicles from South Korea to global markets.
The company exports 90% of the vehicles it makes in South Korea, led by Chevrolet shipments to the European Union, but because of limited storage space at its plants the company is dependent on the ports for storage prior to shipment and this has become a major challenge through 2010, an official told Automotive Logistics News.
Currently GM Daewoo uses the nearest sea ports to its manufacturing plants as the loading port for export vehicles. It uses Incheon port for vehicles produced at its Bupyeong plant, Gunsan port for Gunsan plant vehicles and Masan & Busan port for Changwon plant vehicles.
Since each GM Daewoo plant itself has limited storage yard space, the majority of its volume needs to be moved to the port storage yard, but the company said there is now very limited port storage available. Instead the company is looking for additional storage facilities near the loading port for the balance volume.
Earlier this year, executives from Kia told Finished Vehicle Logistics that vehicle storage at South Korean ports had been a problem compounded by the longer loading times brought about by the shipping industry’s move toward using larger vessels, as well as measures taken during the recession to balancing capacity, including slower steaming and added port calls to shipping routes. However, GM Daewoo said this is only a problem for its container transport and has not affected finished vehicle shipments.
Where it does face delay is in the case of small volume countries where no direct ocean service lane is available resulting in longer transit time via transhipment and limited ocean services
A full report on South Korea vehicle activity will be published in the next edition of Finished Vehicle Logistics magazine.