Keelung Port’s Strategies in Coping with the Competition of Taipei Port Container Terminal

Keelung Port’s Strategies in Coping with the Competition of Taipei Port Container Terminal

Ms Madeleine Huang Chinese Taipei

TPT-WG29, Chinese Taipei

29th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007

Outline

1. Introduction of Taipei Port

2. Market Share of TPCTC

3. Impact on Keelung Port

4. Strategies



Taipei port Keelung port1) Northern Taiwan

2) Outside Metropolitan Taipei

3) At the influx of transpacific,

northeast and southeast Asia

1. Introduction of Taipei Port



Natural limits of Keelung port

1) Water depth

2) Berths length

3) Room for container backyard

Auxiliary port

Competition



1)First B. O. T. (build, operate, transfer) project applied in Chinese Taipei’s ports

2)Total investment US$ 600 million

3)7 berths with 2,366 meters in length and 110 hectares in area (12,508 TEU, Emma)

4)Successful bidder: Taipei Port Container Terminal Corp. (TPCTC), formed by Evergreen, Wanhai and Yangming shipping lines.

Taipei Port Container Terminal



Shareholders of TPCTC



Taipei Port Container Terminal



Year Designed

handling

capacity

Estimated

handling

volume

Number of

gantry

crane

Remarks

2008 840 445 7 When N3 ,N4 are completed

2009 1200 730 10 When N5 is completed


2011 1560 1200 13 -




The estimated container handling volume of Taipei PortUnit: thousand TEU



Container handling volume Company

Keelung

Port

Taichung

port

Kaohsiung

Port

Total

Domestic

market

share

Evergreen Group 95 360 2590 3,045 23.8%

Wan Hai Lines 545 480 840 1,865 14.6%

Yang Ming Lines 224 149 1,100 1,473 12.7%

864 989 4,530 6,383 49.95% Total handling

volume of

Company A,B,C 41% 81% 48% 49.95%

Container

volume handled

in 2005

2,090 1,220 9,470 12,780 100%

2. Market share TPCTC in 2005Unit: thousand TEU



Target Market of TPCTC

Regional Import/Export Cargo

Oceangoing Container Trucked

between North and South

Transshipment

Estimate of Container Distribution

Year 2007 2008 2009 2010 2011 2012 2013 2014

Taipei Port Import/export 0 276 451 619 700 900 1,150 1,400

Transshipment 0 169 279 368 500 700 850 950

Total 0 445 930 987 1,200 1,600 2,000 2,350

Keelung Port Import/export 2,040 1,920 1,930 1,840 1,820 1,800 1,730 1,650

Transshipment 110 100 110 120 110 110 90 100

Total 2,150 2,020 2,040 1,960 1,930 1,910 1,820 1,750

Import/export(Returning from Kaohsiung to Taipei)

0 136 301 379 400 550 700 850

Import/export(shifted from Keelung to Taipei)

0 140 150 240 300 350 450 550

Transshipment(shifted from Kaohuiung to Taipei)

0 130 240 320 420 600 700 800

Transshipment(shifted from Keelung to Taipei)

0 10 10 10 30 30 50 50

Extra volume for TPCTC to lure from new market

0 29 29 38 50 70 100 100

Unit: thousand TEU



Year

EstimatedDecrease inContainer

Handling Volume

EstimatedDecrease inContainerRevenue

AnnualConcession Fees

from TPCTC

Estimated RevenueDecrease

2008 150 -6,737 3,609 -3,128

2009 160 -7,218 5,414 -1,805

2010 250 -11,549 7,218 -4,331

2011 330 -14,436 7,218 -7,218

2012 380 -16,842 9,023 -7,820

2013 500 -21,654 10,827 -10,827

2014 600 -26,466 12,632 -13,835

3. Impact on Keelung Port Unit: thousand TEU, thousand USD



1) Improvement1) Improvement of of InfrastructureInfrastructure

2) Upgrade of Service Quality2) Upgrade of Service Quality

3) Competitive and flexible port tariff3) Competitive and flexible port tariff

4) Cost Reduction4) Cost Reduction

5) Reform of Port Organization and Operation System5) Reform of Port Organization and Operation System

4. Strategies for Keelung Port



Extending eastern breakwaterExtending eastern breakwaterDredging program of main channel and container berthDredging program of main channel and container berth．． Filling water area between w18-w19Filling water area between w18-w19

．． Filling water area between w20-w23Filling water area between w20-w23(in the long term)(in the long term)Outward Connecting Road SchemeOutward Connecting Road Scheme

Improvement of InfrastructuresImprovement of Infrastructures



5

Port of Keelung

Extending Eastern Breakwater ． 30 Million USD． Finished by the end of 2008

1400 m

200 m

港區範圍修訂 ( 近程 96～ 100年 )

•Dredging programDredging program

- main channel and container berth- main channel and container berth

650M

-14.5M

-15.5M



Filling water area to create backyard space

Construction to finish: 2008.12.31Construction to finish: 2008.12.31Create Land area: 1.8 Hectare(1860TEU).Create Land area: 1.8 Hectare(1860TEU).

W18

W19324M364M



62

Outward Connecting Road SchemeOutward Connecting Road Scheme

Highway No.3

Highway No.1

East Bank Outward Connecting Road(181 Million USD)

Widening Changshang Road(92 Million USD)



Upgrade of Service Quality

Guarantee of handling efficiencyGuarantee of handling efficiency

Development of Free Trade ZoneDevelopment of Free Trade Zone

Keelung Free Trade Zone

FTZ area: Wharf E6 to E22 and Wharf W11 to W33（ 68 hectare）9 FTZ enterprises operating in FTZ Area.

East Bank

West Bank

TK International Logistics Co. Ltd

1.Main Shareholder: Wan Hai Lines1.Main Shareholder: Wan Hai Lines2.Total Area: 7 hectares2.Total Area: 7 hectares3.Total Investment: 19.5 million USD3.Total Investment: 19.5 million USD



Provide More Competitive Port Tariff

Service ContractService Contract

Release the Restriction of Discount Release the Restriction of Discount



Cost Reduction

Incentive Retirement SchemeIncentive Retirement Scheme

Outsourcing Low Profitable Outsourcing Low Profitable Businesses Businesses



Reform of Port Organization and Operation Systems

Shipping AdministrationShipping Administration

Harbor AdministrationHarbor Administration

Business Operations Business Operations

Corporatization



Documents

Keelung Port’s Strategies in Coping with the Competition of Taipei Port Container Terminal