October 2013 No.57

Gateway To Asia-pacific Trade Network

Brisk bidding for Kaohsiung Nansing ProjectZone Sites

Lota's raw material costs are heavily influenced by

the foreign exchange and futures markets. Through

use of the LME in the Port of Kaohsiung, Lota will

be able to moderate the fluctuations in its raw mate-

rial costs. The site designated for exclusive use by

manufacturing in the Port of Kaohsiung connects the

adjacent industrial areas with its export processing

zone. The Taiwanese iron and steel company which

bid successfully for the manufacturing site can take

full advantage of its location and access to stream-

line its service, production and out-sourcing.

The Reverse Logistics site in Nansing site will be

developed into a base for product maintenance and

inspection operations. The Value-Added Agriculture

site will be the center of purchasing and general

logistics for agricultural goods. International goods

assembly and processing will be carried out in the

International Value-Added Logistics site. Nansing

Project Zone sites are the subject of numerous

enquiries by LME operators, Taiwanese business-

men, and foreign companies. The Taiwan

International Ports Corp. (TIPC) continues to wel-

come business enquiries and investment in Nansing.

In accordance with government plans for the

National Free Economic Pilot Zones, the Taiwan

International Ports Corp.(TIPC) opened bidding

for the Nansing Project Zone on August 21 & 23,

2013. Bidding sites include the LME (the

London Metal Exchange), manufacturing,

Reverse Logistics, and Value-Added

Agriculture. The bid for the LME site ( 3.28

hectares) was won by Lota International Co.,

Ltd, and the manufacturing site ( 4.5 hectares)

was successfully bid for by a Taiwanese iron

and steel operator. Significantly, both bids indicate

the first wave of Taiwanese businessmen have

returned home to invest domestically following

the launch of the Free Economic Pilot Zones. It

also demonstrates the inherent attraction of both

diverse land-development for investors, and the

Port of Kaohsiung's new status as an LME repre-

sentative port.

This initial investment in Nansing is expected

to create more than 200 job opportunities. Both

companies who bid successfully have their opera-

tional bases in China. Lota is the largest manufac-

turer of bath accessories and hardware in Asia,

with its faucets accounting for 80% of the market.

1

The London Metal Exchange (LME), on August 21, 2013, certi-

fied three large warehousing operators (the Netherlands C.

Steingweg Warehousing, Switzerland Pacorini Metals, and

Singapore H&M Metal Warehousing/Taiwan) and their partnership

enterprises (The Kaochun Stevedoring Co., Formosa Logistics

Corp , Kao’s Express Warehouse & Stevedoring Co.Ltd., Lien

Hai Terminal Corporation, and Nippon Yusen Kaisha /NYK) to

utilize their six warehouses within Container Terminal No.4 and

the Chungtao Commercial Harbor Area. Storage operations are

scheduled to commence by November 21 this year. The anticipat-

ed inbound volume of non-ferrous metals will be 250,000 tons for

the first year, and increase by 80,000 tons annually, reaching

570,000 tons in the fifth year.

The London Metal Exchange

(LME) is the world's largest non-fer-

rous metals exchange market, encom-

passing copper, aluminum, lead, zinc,

tin, nickel, and aluminum alloys.

There are currently 36 trading venues

and 712 LME-approved warehouses

worldwide. With the commencement

of LME operations in the Port of

Kaohsiung, the Port of Kaohsiung's

status as a supply chain hub and a

supply center for international metal

futures warehousing and transship-

ment has been significantly enhanced,

effectively linking it to other major

ports in China. It is another large

stride toward the Taiwan

Government's goal of joining the

Trans-Pacific Partnership (TPP).

Six Warehouses in the Port of Kaohsiung Certified by LME

Anping Harbor Approved for FTZ

The CEPD (Council for Economic Planning and

Development) under the auspices of the Executive Yuan

approved the application for establishment of a Free

Trade Zone in Anping Harbor on August 12, 2013.

Warehousing and International Logistics operators in the

Anping FTZ will work closely together with the city

government to enable those industries connected with

agricultural goods, food-processing and biotechnology to

increase the value of their output. Annual commodity

production is expected to reach over three million tons, which will bolster

Tainan’s industrial cluster growth and drive the development of surround-

ing areas.

Given that cross-strait trade continues to flourish, it comes as no surprise

that demand for direct shipping is increasing rapidly. Anping Harbor has an

inherent geographical advantage, since it is only 145 nautical miles from

both Xiamen Port and Quanzhan Port, and 220 nautical miles from Fuchou

Port. Anping Harbor not only serves the industries in the south of Taiwan,

but also links adjacent agricultural areas with the neighboring science-

based park, and its future development as a Free Economic Pilot Zone will

super-charge its economic effects.

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3

Letter of Intent signed with WCT

In a significant development for the domestic cruise mar-

ket, the Taiwan International Ports Corp.(TIPC) signed a

Letter of Intent with Worldwide Cruise Terminals (Hong

Kong) Limited (WCT) on August 26, 2013. The Letter was

signed by Vice Manager Chang of TIPC and General

Manager Ben of WCT. Both parties agreed to take steps to

boost the domestic cruise market and join forces in shipping

and port passenger business.

In order to cater to the growing cruise market, the TIPC

has been vigorously seeking suitable business partners.

Worldwide Cruise Terminals (Hong Kong), the operator of a

new cruise terminal at Kai Tak Airport in Hong Kong, was

similarly looking to promote its cruise business. By signing

the agreement, both Hong Kong and Kaohsiung Port will be

able to expand the number of shipping routes and thereby

attract more cruise passengers.

From the viewpoint of the cruise industry, TIPC stressed

that the relationship between the two cruise terminals should

be characterized as a partnership, rather than a rivalry. By

combining the advantages of each of the cruise terminals,

both sides will produce a “win-win” situation. The agree-

ment elicits five goals :

1. To encourage shipping operators to expand

their number of shipping routes.

2. To promote port passenger business.

3. To exchange marine

transportation infor-

mation and operat-

ing techniques.

4. To undertake joint

promotion of pas-

senger transporta-

tion business.

5. To exchange person-

nel and conduct reg-

ular visits to share

operational and

management experi-

ence.

TIPC and WCT will

continue to explore

joint business ventures,

with the aim of introducing a more diverse cruise

business between Hong Kong and Taiwan. This

in turn should boost the prospects of the cruise

economy of the entire Asia-Pacific Region by

attracting long-journey cruise passengers from

Europe and America to Hong Kong and Taiwan.

The Taiwan International Ports Corp.(TIPC) and Hainan Port Navigation

Holding Co.,(HPNH) signed a Letter of Intent on July 31, 2013. The agree-

ment was signed by Vice Manager Chung of TIPC and Vice Chairman Wu

of HPNH.

Both Kaoshiung Port and Hainan Port share many common characteris-

tics: in both cases, marine transportation plays a vital role in their economy.

They also have similar operational goals, such as accelerated development

of their respective port zones and renovation of their old port areas. Signing

the agreement, therefore, should strengthen their mutual ties and open the

way to greater bilateral port operations and business.

The Letter of Intent encourages shipping lines to launch and expand pas-

senger/ container shipping routes to boost transportation volume and servic-

es. It also allows both ports to undertake joint promotion sales on shipping-

related business, to exchange personnel visits and training, and to enhance

their bilateral relationship through official agreements and procedures.

TIPC and Hainan Port NavigationHolding Co., sign Letter of Intent

4

Kaohsiung Port and Cruise Service Center

Determined to transform Kaohsiung Port into an international multi-functional Port, the

Taiwan International Ports Corp.(TIPC) has committed itself to the construction of the

Kaohsiung Port and Cruise Service Center. Estimated to cost NT$4.143 billion, the Center will

become the new gateway to Kaohsiung Port. Bidding for the first phase of construction began

on Aug.27, 2013, and was won by Chun Yuan Construction Co., Ltd. Further bids will be com-

pleted by February, 2014.

The Kaohsiung Port and Cruise Service Center is located at Wharf No.19~No.21, within the

Lingya Commercial Harbor. The 15-story, architecturally-advanced building has a total floor

space of 80,774 square meters, and contains offices, passenger entry/ departure space, an infor-

mation center, boarding corridors, and other service areas. The first phase of construction will

commence in October, 2013, and the whole project is scheduled to be completed by June,

2017.

The Kaohsiung Port and Cruise Service Center, along with its 726-meter-long and 10.5-

meter-deep wharf, will be capable of simultaneously accommodating two world-class cruise

ships, as well as catering for the demands of the Oasis-class cruise ship (currently the largest

cruise ship worldwide). During peak demand, the Service Center will be able to cope with up

to 2,500 cruise passengers per hour, providing them with ample, convenient and comfortable

service areas. This new, world-class Service Center will not only

earn Kaohsiung a prominent place on the global tourism map, but

will also boost the port and local city economy tremendously.

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6

The groundbreaking ceremony for the

International Logistics Center in the Kaohsiung

Chienchen Free Trade Zone was held collec-

tively by the Taiwan International Ports

Corp.(TIPC) and J.Shine International

Logistics Co., Ltd. on Aug.1, 2013. The

Kaohsiung City Government, the Kaohsiung

Customs Office, and numerous shipping-relat-

ed operators were present at the cere The

Chienchen Free Trade Zone is situated to the rear of Container

Terminal No.2 of Kaohsiung Port ( Wharf No.63~66), in close

proximity to the main city roads. It is connected to Chungtao

Commercial Harbor, Container Terminal No.2, 3, 5, and

National Freeway No.1 through the Overpass Access (current-

ly under construction), which greatly facilitates traffic flow to

and from the Free Trade Zone and thereby enhances its opera-

tional efficiency.

The Chienchen Free Trade Zone, 12.5 hectares in size, is

divided into five sites, and the fourth site (approx. 2.5

hectares) is scheduled to be developed into an International

Logistics Center (under an agreement signed by J.Shine on

May 15, 2013). Sites No.1~3, totaling 8.12 hectares, will also

be utilized as a base for subsidiary logistics companies. Initial

business will focus on Multiple Country Consolidation

(MCC), which combines cargos from different countries head-

ed for the same destinations by implementing logistics servic-

es including assembling, simple processing, packing, and

labeling to increase the cargos' added value. The TIPC is cur-

rently holding a joint-venture partner selection process, and

welcomes the participation of any and all interested operators.

The Chienchen Free Trade Zone, as developed by the TIPC

and J.Shine, integrates Free Trade Zone preferential tax and

customs facilities, and as such is expected to contribute to a

considerable growth in container volume for the Port of

Kaohsiung.

International Logistics Center, KFTZ

First Call at Port of Kaohsiung

Publisher : Hsiao, Ding-Hsun

Editors-in-Chief : Wang, Yu-Chuan

Committee : Chen, Su-Man, Chen, Rong-Shin, Cheng, Shu-Hui, Liu, Soun-Laun,

Wang, Yu-Chuan, Wang,Chin-Jumg

Chinese Editor : Tseng, Lih-An English Editor : Lin, Shiu-Yueh

English Consultants : Laurence Quinlivan, Patrick Quinlivan

Design & Print : C.H Design (Tel : 07-231-9705)

Port of Kaohsiung, Taiwan International Ports Corporation, Ltd.

No.62, Lin Hai 2nd Road, Kaohsiung Taiwan 80443, R.O.C

Tel : 886-7-5622532 Fax : 886-7-5611694

Website : http://www.khb.gov.tw

The following Taiwan Hanjing Container ships made their maiden voyage to the Port of Kaohsiung in June &

July, 2013, docking at Wharf No.78.

M/V HANOI BRIDGE, a Panama-registered con-

tainer ship, belonging to Taiwan Kawasaki Kaisha

(K-Line Taiwan), made its maiden voyage to the Port

of Kaohsiung on June 23, 2013, docking at Wharf

No. 108. Built in 2010, she has a total weight of

96,790 GT, a length of 335 meters, a beam of 45.6

meters, and a carrying capacity of 8,212 TEU. She

will serve on the shipping route : Singapore -

Shanghai - Yantian - Kaohsiung - Ninbo - Shanghai.

vessel Date Description Shipping route

HANJIN 37,199 GT Kaohsiung - Shanghai -

TURKEY July 14 221.53 x 34.9 m Pusan - Long Beach - Auckland -

3,600 TEU Seattle - Tokyo - Nagoya

HANJIN 37,199 GT Shanghai - Kwang Yang -

ARGENTINA June 30 221.53 x 34.9m Pusan - Long Beach - Auckland -

3,600 TEU Seattle - Tokyo - Nagoya -

Kaohsiung - Yantian - Shanghai

HANJIN 35,595 GT Shanghai - Kwang Yang - Pusan -

ALGECIRAS June 23 212.19 x 32.2 m Long Beach - Aukland - Seattle -

3,400 TEU Tokyo - Nagoya -Kaohsiung -

Yantian - Shanghai

HANJIN 51,032 GT Pusan - Shanghai -

MAR June 20 236.13 x 37.4 m Ninbo -Shedou - Kaohsiung -

Melbourne - Sydney - Brisbane