Ongoing Investment in Port of Kaohsiung and Anping Harbor to promote competitiveness

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1 April 2013 No.55 Gateway To Asia-pacific Trade Network Ongoing Investment in Port of Kaohsiung and Anping Harbor to promote competitiveness The Taiwan International Commercial Ports Development Plan, drafted by Taiwan International Ports Corp. (TIPC), was approved by the Executive Yuan on Sep.5, The plan is aimed at individual port capacity and orientation, to encourage the overall performance of each port in Taiwan. The plan, estimated to cost NT$66 billion during 2012~2016, is to push forward port development in the Ports of Keelung, Taichung, Kaohsiung, Hualian, Suao and Anping. The Port of Kaohsiung has undertaken the following projects: Intercontinental Container Terminal Phase II, Cruise and Passenger Terminal, connecting overpass, renovation of No.115~117 wharves, and the development of newly-acquired land in Nansing and Chienchen. The completion of the projects above is expected to expand the Port of Kaohsiung s operational hinterland, which will then serve as a distribution center for petrochemical /container /logistics operators in the south of Taiwan. Newly-constructed and reno- vated deep-water wharves are capable of catering to mega container vessels. The new Cruise and Passenger Terminal will encourage more cruises to call at Kaohsiung. And the new connecting overpass will effectively promote transportation efficiency by connecting Chungtao Commercial Area, Container Terminal No.2,3,5, the cross-harbor tunnel, and the national freeway, as well as improve city traffic quality by dividing passenger cars and container vehicles adjacent to the port area. In addition, the Port of Kaohsiung will be conducting numerous other projects during 2012~2016. These include an artificial island designed to improve protection by reducing wave intrusion into the new port; the enlargement of storage areas to the rear of Terminal No.4; renovation of warehouses in Nansing, Chienchen and Chungtao; development of acquired nationally-owned land to the rear of Container Terminal No.2; the sewage system in the port areas; and a new multi-purpose Wharf No.10 in Anping Harbor. The new artificial island is expected to improve water stability in the Intercontinental Container Terminal Phase II for the safety of vessels navigation and mooring. The enlarged hinterland of Container Terminal No.2 & 4 will attract more international logistics operators and augment container operational capacity. The renovated warehouse facilities in Nansing and Chienchen will provide logistics/value-added operators with metal goods storage, which will further strengthen Kaohsiung s role as a certified port for The London Metal Exchange (LME). The opening of Anping Terminal No.10 will meet the expected surge in container volume following the introduction of direct cross-strait shipping and the signing of the Economic Cooperation Framework Agreement (ECFA).

2 The Port of Kaohsiung, the largest international commercial port in Taiwan, serves as a shipping hub for international shipping lines. In order to bolster its international position, the Port of Kaohsiung has vigorously engaged in expanding its business activities and upgrading its infrastructure. In so doing, it has both improved the larger economic picture and increased job opportunities in the south of Taiwan. In co-operation with the local government, the Port of Kaohsiung has steadily been transformed into a Green Port, a unique fusion of economic vitality, a vibrant civic life, and an active concern for the environment. Nansing Project Zone Business Invitation to draw billions in investment The largest reclaimed land project (Nansing Project Zone) at the Port of Kaohsiung will commence invitations for business in April, The zone is divided into three areas for the exclusive use of the London Metal Exchange (LME), international logistics, and industrial conglomerates. The zone is expected to attract many billions of dollars in investment and result in an increased turnover of five million tons of goods annually. The Port of Kaohsiung has been designated a Free Economic Demonstration Zone by the CEPD (Council for Economic Planning and Development). The Nansing Project Zone is one of six new-generation free trade zones contained in the National Plan. Since it will enjoy preferential tax and labor benefits, Nansing is expected to be a new economic flywheel for the Port of Kaohsiung. The total reclaimed land in Nansing includes 98.1 hectares purchased from the Kaohsiung City Government and eight hectares from privately-owned sources. The first phase of infrastructure construction in Nansing and the overpass connecting the Intercontinental Container Terminal (ICT) began in February, In future, enterprises within the Nansing Zone will be able to reap the full benefits of the ICT to facilitate their operations. 1

3 CPC signs Investment Contract with TIPC The Chinese Petroleum Corporation, Taiwan (CPC) and Taiwan International Ports Corp. (TIPC) signed an investment contract on March 1st, 2013 covering cooperation in constructing a new petrochemical distribution center. In accordance with regulations governing the Kaohsiung Intercontinental Container Terminal Phase II, 2011~2019, hectares of reclaimed land to the south of the second harbor entrance has been set aside for construction of a new petrochemical distribution center and container terminal. In addition to investing some NT$ 20 billion on partial reclamation and six wharves with a depth of -18 meters, CPC will construct petrochemical tanks and relevant facilities to an estimated value of $60 billion. 2

4 TIPC Anniversary Celebration The Taiwan International Ports Corp. (TIPC) held its first anniversary on March 1st, 2013, and presented awards to its valued customers, both operators and shipping companies, for their outstanding performance and contributions. Minister Yeh of the Ministry of Transportation and Communications remarked during the ceremony that TIPC has vigorously committed itself to promoting port efficiency, creating added value through supply chains and logistics, international logistics, cross-strait express ferries, the international cruise industry, and numerous other business activities, within the organizational framework of port groups and the expansion of Free Trade Zones. He added that TIPC is expected to further expand the scale of its port business with an infusion of new faces, and a commitment to innovation. President Hsiao of TIPC pointed out that in spite of the European debt crisis last year, TIPC performed well in every measure of container volume, number of passengers, and trade volume. Furthermore, TIPC will continue to commit itself to seeking performance excellence, securing an ever-growing stake in the global free trade market, and accelerating urban/port development. 3

5 Cruise Tourism Continues to Boom The COSTA VICTORIA, a 70,000-ton cruise ship owned by Costa Crociere, operated by Carnival Cruise Lines, the world s largest cruise operator, and represented by Barwil Inc., made a voyage to the Port of Kaohsiung on Jan.29, Following the visit of its sister ship the COSTA ROMANTICA to Kaohsiung in Oct, 2010, the COSTA VICTORIA with 1,600 passengers, was the first cruise liner to arrive at Kaohsiung before the Chinese New Year, bringing considerable business opportunities to the local Taiwan tourism industry. Registered in Italy, the VICTORIA serves mainly on the north-east Asia shipping route. Completed in 1996, she has a gross tonnage of 75,951 tons, a length of meters, and a beam of 32 meters. To attract ever greater numbers of large cruise ships to the city, the Port of Kaohsiung has undertaken a number of steps to boost its appeal. As well as dredging Wharves No. s 8~10 into deep-water wharves, the Port of Kaohsiung has also equipped hitching posts for greater protection from typhoons, and converted a number of warehouses into customs areas for cruise passengers. In the wake of these ongoing improvements, authorities are confident that the number of cruises and passengers will hit another record high in The number of passengers carried by cruise vessels calling at the Port of Kaohsiung through 2012 grew by 26.6% year-onyear. This is part of a trend among major cruise operators to dispatch large cruise liners to carve a niche in the emerging markets of Asia. For example, the Royal Caribbean Cruise company recently visited the Port of Kaohsiung to assess the port s handling capacity for VOYAGER OF THE SEAS. 4

6 Successful Trial of Alternative Maritime Power The trial of Alternative Maritime Power (AMP) in Container Terminal No.6 has been successfully completed. For berthed vessels, the use of AMP not only reduces air pollution but also significantly cuts a vessel s fuel costs. Container Terminal No.6, operated by Kaoming Container Terminal Corporation, was constructed under the guiding principles of energy conservation and the reduction of carbon dioxide emissions. AMP was introduced by Kaoming in 2012 to eliminate the unnecessary waste of fuel resulting from generators running while vessels were berthed. The trial of AMP at Wharf No. s 108 & 109 has been conducted successfully by two 6600-TEU container ships YM Masculinity and YM Mutuality berthed at the Port of Kaohsiung. In the near future, more AMP facilities will be set up in the Port of Kaohsiung. Photo by YML Dredging work at the First and Second Harbor Entrance Dredging and expansion work at the first and second harbor entrances was completed in March, The maximum draft at the first harbor entrance is now meters, and meters at the second harbor entrance. 5

7 Full Subsidy for dockage and towage fees for berth-shifting In order to cut the cost of dockage and towage fees charged to small and medium-size vessels, the Port of Kaohsiung will introduce Subsidies for dockage and towage fees for berth-shifting of container vessels under 40,000 tons from July 1st, The Port of Kaohsiung, as well as other Ports in Taiwan, jointly launched their Loaded Transshipment Cargo Incentive and Blue Way Loaded Cargo Incentive schemes several months ago. However, as a means of further strengthening Kaohsiung Port s transshipment functions and to encourage more regional shipping companies to carry transshipment cargo to the Port, the Port of Kaohsiung has also introduced this additional subsidy incentive. this new, innovative scheme, container vessels that are required to shift between wharves in the Port for the sake of loading/ unloading containers will be eligible to receive a full subsidy for their dockage and towage fees. The tentative effective period is from July 1, 2013 through to June 30, For any further inquiries please e- mail to p07803@mail.khb.gov.tw (Ms Chen) or p07455@mail.khb.gov.tw (Mr. Yang). Since the wharves in the container terminals at Kaohsiung Port have been mainly invested in and operated by large container shipping companies, regional and small/ medium size shipping companies must often switch berths at the port to deliver cargo to main haul carriers berthing at different container terminals for further transshipment. The resulting dockage and towing charges incurred through this berth-shifting deter small and medium-sized carriers from calling at the Port of Kaohsiung. Upon full implementation of 6

8 First Call at Port of Kaohsiung M/V BEAR MOUNTAIN BRIDGE, a Panama-registered container ship, represented by Taiwan Kawasaki Kaisha (K-Line Taiwan), made her maiden voyage to the Port of Kaohsiung on Feb.20, 2013, docking at Wharf No.108. Built in 2011, she has a total weight of 44,234 tons, a length of 267 meters, a beam of 35.4 meters, and is capable of carrying 4,430 TEU. She will serve on the route: Xiamen - Hong Kong Yantian Kaohsiung Shanghai - Long Beach Auckland. M/V OOCL MIAMI, a Hong Kong-registered container vessel, represented by OOCL Taiwan / Orient Overseas Container Line, made her first call at the Port of Kaohsiung on Jan.29, 2013, docking at Wharf No.65. Launched at the beginning of 2013, she weighs 91,563 tons in total, and is 335 meters in length, and 42.8 meters across the beam. With a maximum speed of 23 knots, she has a carrying capacity of 8,888 TEU. Her shipping route is : Xiamen Yantian Shedou Hong Kong Kaohsiung Long Beach. Photo by MarineTraffic.com Photo by Google M/V HANGZHOU BAY BRIDGE, a Panama-registered container ship, represented by Taiwan Kawasaki Kaisha (K-Line Taiwan), made her maiden voyage to the Port of Kaohsiung on Dec.24, 2012, docking at Wharf No.108. Built in 2012, she has a total weight of 96,790 tons, a length of 336 meters, a beam of 45.6 meters, and is capable of carrying 8,212 TEU. She will serve on the route: Shanghai Ningbo - Xiamen Kaohsiung Hong Kong Yantian. Photo by Google Photo by MarineTraffic.com Publisher : Hsiao, Ding-Hsun Editors-in-Chief : Su, Jiann-Rong Committee : Chen, Su-Man, Chen, Rong-Shin, Cheng, Shu-Hui, Liu, Soun-Laun, Su, Jiann-Rong, 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 : ) Port of Kaohsiung, Taiwan International Ports Corporation, Ltd. No.62, Lin Hai 2nd Road, Kaohsiung Taiwan 80443, R.O.C Tel : Fax : Website :