Ground breaking ceremony for Kaohsiung Port/Cruise Service Center

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January 2014 No.58 Gateway To Asia-pacific Trade Network Ground breaking ceremony for Kaohsiung Port/Cruise Service Center The Taiwan International Ports Corp.

9, 2013, presided over by Vice President Wu, Deputy Premier Mao, Minister Yeh of the MOTC, Kaohsiung Mayor Chen, and other distinguished guests.

1 January 2014 No.58 Gateway To Asia-pacific Trade Network Ground breaking ceremony for Kaohsiung Port/Cruise Service Center The Taiwan International Ports Corp.(TIPC) held a ground-breaking ceremony for the Kaohsiung Port and Cruise Service Center on Nov.9, 2013, presided over by Vice President Wu, Deputy Premier Mao, Minister Yeh of the MOTC, Kaohsiung Mayor Chen, and other distinguished guests. At the commencement of the ceremony, the American architect Jesse interpreted the ideas and concept behind the design of the Kaohsiung Port/Cruise Service Center. This was followed by a presentation on the development of the Service Center, delivered by General Manager Lee of TIPC. The Service Center is expected to transform the Port of Kaohsiung into a vital hub for cruise tourism, in addition to playing a key role in the Kaohsiung City Government's grand plan for tourist industry development. Estimated to cost NT$ 4.5 billion, the Center is scheduled to be completed by June, Along with the existing Wharf No.'s 17~ 21, the Center will be capable of accommodating two international-class cruise ships simultaneously, as well as handling over 2500 tourists during peak hours. The 15-story, architecturally-advanced building has a total floor space of 80,774 square meters, and contains offices, passenger entry/departure areas, and an information center, boarding corridors, and other service areas. On the third floor, an expansive outdoor area will become an ocean view observation deck. This area will undoubtedly become a major tourist attraction for local residents, and will be open to the public 24 hours/day. TIPC's "Old Port Areas Redevelopment Plan" includes Wharf No.1~ No.21, totaling over 40 hectares. The new Center is part of the "Kaohsiung Multi-functional Commerce and Trade Park, whose surrounding business areas and transportation network offer a fully integrated commercial hub. Completion of the plan will not only boost both cruise tourism and the city economy, it will also provide superb waterfront areas for the enjoyment of the local citizenry.

The Port of Kaohsiung applies for EcoPort Status Since EcoPort status has achieved global popularity in recent years, a "Green Port" policy has been vigorously pursued by the Port of Kaohsiung.

The Port of Kaohsiung is expected to be the first ESPO certified port in the Asia Pacific Area.

2 The Port of Kaohsiung applies for EcoPort Status Since EcoPort status has achieved global popularity in recent years, a "Green Port" policy has been vigorously pursued by the Port of Kaohsiung. The Port of Kaohsiung has recently completed the first phase of certification for the European Sea Ports Organization (ESPO). The Port of Kaohsiung is expected to be the first ESPO certified port in the Asia Pacific Area. Once a member of ESPO, the Port of Kaohsiung will be able to exchange Green Port information with some seventy other members worldwide. To pass the second phase of certification of the Port Environmental Review System (PERS), Dr. Chris Wooldridge of ECO Sustainable Logistic Chain (ECOSLC), a professor from Cardiff University, was invited by the Institute of Transportation and National Sun Yat-sen University to conduct an EcoPort seminar for high-ranking supervisors as well as share EcoPort management experience in the EU. The Port of Kaohsiung is expected to complete the second phase of the PERS (Port Environmental Review System) certification process by year end, EcoPort certification will accelerate port environmental protection and the pursuit of sustainable operations through the application of EcoPort regulations. 1

LME. On Nov.21, 2013, the Taiwan International Ports Corp.

3 The Port of Kaohsiung begins operations as an LME Port The Port of Kaohsiung began operations as a certified LME Port on Nov.21, 2013, following a series of rigorous assessments by the London Metal Exchange (LME) All relevant criteria, including Free Trade Zone tariff, warehousing, and logistics, have been approved by the LME. On Nov.21, 2013, the Taiwan International Ports Corp.(TIPC) held a ceremony to launch Kaohsiung Port's LME operation, a ceremony attended by Premier Jiang, Minister Yeh of the MOTC, Executive Syu of the LME Hong Kong Exchange, and other representatives of the shipping industry. The London Metal Exchange (LME) is the world's largest non-ferrous metals exchange market. There are currently 36 certified ports and 712 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 center for international warehousing and transshipment has been significantly enhanced, effectively linking it to other major ports in Asia. The TIPC believes that the commencement of LME operations in Kaohsiung, in conjunction with the Nansing Project Zone, and the iron and steel industry, will provide an estimated 1500 job opportunities. Currently four LME international operators are in joint collaboration with six Taiwan warehousing operators, which will bolster Kaohsiung Port s reputation as a non-ferrous metals distribution hub. LME operations will also boost Taiwan's dynamic economy by attracting Taiwanese business investment. Above all, it will be a sure sign of success for the National Free Economic Pilot Zones, as well as a tangible asset in negotiations over Free Trade Agreements (FTA) and The Trans-Pacific Partnership(TPP) 2

Letter of Intent signed with Rizho Port In order to promote port operations, logistics, and cruise tourism with Rizho Port in Shandong Province, China, Kaohsiung Port recently signed a Letter of

31, 2013, to encourage mutually preferential treatment, promotion, and development Kaohsiung Port is the largest international commercial port in Taiwan.

4 Letter of Intent signed with Rizho Port In order to promote port operations, logistics, and cruise tourism with Rizho Port in Shandong Province, China, Kaohsiung Port recently signed a Letter of Intent with Rizho Port. It was signed by Vice Manager Zhong of Kaohsiung Port and Vice Chairman Kong of Rizho Port on Oct.31, 2013, to encourage mutually preferential treatment, promotion, and development Kaohsiung Port is the largest international commercial port in Taiwan. With extensive worldwide shipping links and state-of-the-art port facilities, Kaohsiung Port is one of the world s major ports, with annual container-handling volume of over 9.80 million TEU. Given the importance of its port business, Kaohsiung Port has sought to transform itself into a high-added-value modern port through renovation, and innovation. 3. Establishing an information exchange platform 4. Carrying out joint-marketing 5. Holding staff training 6. Cooperating with local industry 7. Providing trade exchange for both sides After signing the Letter of Intent, both parties will initially develop their own cruise tourism business, and cooperate further on port and logistics business. By launching direct shipping routes between the two ports, and designating Kaohsiung Port as a transshipment hub for Rizhao Port, both ports will achieve a win-win goal via a steady increase in bilateral port business and trade development. Located in the south of Shandong Provice, Rizho Port is the newest port on the coast of China. In addition to increasing its commodity shipping capacity, Rizho Port has devoted itself to cruise tourism. By popularizing its rich cultural history, including the hometown of Confucius, the number of sightseers visiting Rizhao City is expected to grow along with Rizho Port cruise tourism. 3 The Letter of Intent includes: 1. Opening new shipping routes 2. Conducting transshipments between the two ports

5 Port Fee Incentives Preferential port charges remain in place until June 30, All container vessels meeting one of the following conditions are eligible for the container terminal dockage fee incentive, apart from those applicable to the Intercontinental Container Terminal. 1) Container vessels entering the port, which undergo stevedoring operations at different wharves, are allowed to combine their time spent on dockage; if this exceeds 12 hours, the additional time will receive a 20% discount on the dockage fee. 2) Container vessels entering the port on their first voyage, changing shipping routes at the port and fully discharging their cargoes, or conducting repairs after fully discharging (including departing for ports at home or abroad), can receive a 50% discount on their dockage fee, and 40% off on their towage fee. 3) An individual shipping line whose number of container vessels entering the port in the same year exceeds that of the previous year by 80% (rounding off), will receive 20% off on dockage fees for every vessel in excess of the 80%. 4) Container vessels over 60,000 G/T will receive a 40% discount on dockage fees. 5) For those container vessels which adjust their berths in line with mutual cooperation agreements, their accompanying support vessels will receive a 50% discount on dockage fees, and be exempt from towage fees. 2. Reduced charges for towage of container vessels are available on one of the following conditions, except those charges applicable to Phase One of the Intercontinental Container Terminal. 1) An individual shipping line whose time spent on towage of container vessels in the same year exceeds that of the previous year, will receive 40% off on towage fees for any container vessel that exceeds that of the previous year. 2) Container vessels, using a tug boat continuously for over two hours, will receive 20% off on their towage fees. 3) Container vessels, switching berths at the port, will receive a 50% discount on towage fees. 3. Loading/ unloading charges on transshipment containers Transshipment containers at the port are exempt from loading/unloading charges. For further information, please contact (Mr.Yang) p07455@mail.gov.tw 4

Largest-Ever Cruise Ship Visits Kaohsiung Port Royal Caribbean International's Mariner of the Seas, registered in Panama, made her maiden voyage to Kaohsiung from Hong Kong on Oct.

6 Largest-Ever Cruise Ship Visits Kaohsiung Port Royal Caribbean International's Mariner of the Seas, registered in Panama, made her maiden voyage to Kaohsiung from Hong Kong on Oct.30, 2013, docking at Wharf No.'s 8~10. Carrying 3,400 passengers, it is the largest cruise vessel to ever visit Kaohsiung Port. Built in 2003, Mariner of the Seas has a total gross weight of 138,279 GT, a length of 320 meters, a beam of 39 meters, and a draft of 9 meters. Legend of the Seas and MS Rhapsody of the Seas, both belonging to RCI, have called at the Port of Kaohsiung several times. Royal Caribbean International places a heavy emphasis on cruise tourism in Asia, and expects the Port of Kaohsiung to play a vital role in expanding its cruise business. Cruise operators are deploying everlarger cruise ships to the Asian market, and increasing the frequency and scope of their operations. To date, 41 visits by cruise vessels to Kaohsiung Port have been confirmed for 2014, an increase of 250% over To cater to this boom in demand for cruise tourism, the Port of Kaohsiung has made strenuous efforts to improve its relevant port facilities and streamline passenger arrivals, including the building of its new Kaohsiung Port and Cruise Service Center. Furthermore, in pursuit of its goal to become the premier Asian cruise center, the Port of Kaohsiung has participated in extensive cruise business promotions and campaigns in conjunction with the Kaohsiung City government. For example, during cruise visits to Kaohsiung, the Port of Kaohsiung has held city sightseeing activities and seminars to foster greater cooperation between travel agents and cruise operators. 5

Anping Free Trade Zone in collaboration with Tainan City In order to promote the Free Trade Zone (FTZ) in Anping Harbor and further encourage collaboration between the city and harbor, the Taiwan

7 Anping Free Trade Zone in collaboration with Tainan City In order to promote the Free Trade Zone (FTZ) in Anping Harbor and further encourage collaboration between the city and harbor, the Taiwan International Ports Corp.(TIPC) and Tainan City Government jointly set up a platform to promote the Anping FTZ, which held its first conference on Nov.26, Use of the platform is expected to better integrate the various resources available to promote the Anping FTZ, along with facilitating co-operation among the relevant authorities. The conference was jointly hosted by President Hsiao of the TIPC and Tainan City Mayor Lai, and participants included representatives from all interested government departments. The conference discussed topics such as the platform organization division, business invitations, and a singlestop service center to be established to deal with promotion of Anping FTZ business and to deal with applications from interested operators. The Anping FTZ is an important part of the overall development plan for Five Seaports and One Airport, providing shipping lines and logistics operators with a more robust and sustainable economic environment. Together with the Kaohsiung Free Trade Zone, and its adjacent agricultural areas and neighboring science-based park, the Anping Trade Zone will be a shopfront for a wide range of goods produced throughout its extensive hinterland, as well as warehousing, logistics, transshipment, outsourcing, and simple processing. Moreover, in line with government policy to establish Free Economic Pilot Zones, Anping FTZ will soon be upgraded into a Free Economic Pilot Zone, to facilitate its international logistics ventures, agriculture/fishery value-added distribution, and food-processing. 6

The HANJIN CALIFORNIA, a Liberia-registered container vessel, represented by Taiwan Hanjin, made her maiden voyage to the Port of Kaohsiung on Oct.27, 2013, docking at Wharf No.78.

She serves the west coast of North America - Kaohsiung - Shanghai - Pusan - Long Beach - Auckland - Seattle - Tokyo - Nagoya First Call at Port of Kaohsiung The M/V YM YODESTY, belonging to Yang Ming

She is serving the West Coast America (PSW3) route : Hong Kong - Yantian - Kaohsiung - Keelung - Los Angeles - Auckland - Pusan - Kwang yang - Keelung - Kaohsiung Publisher : Hsiao, Ding-Hsun

8 The HANJIN CALIFORNIA, a Liberia-registered container vessel, represented by Taiwan Hanjin, made her maiden voyage to the Port of Kaohsiung on Oct.27, 2013, docking at Wharf No.78. Delivered in Jan, 2013, she has a gross tonnage of 40,885 tons, a length of 228 meters, a beam of 37.3 meters and a carrying capacity of 3,600 TEU. She serves the west coast of North America - Kaohsiung - Shanghai - Pusan - Long Beach - Auckland - Seattle - Tokyo - Nagoya First Call at Port of Kaohsiung The M/V YM YODESTY, belonging to Yang Ming Marine Transport Corp, made her first voyage to the Port of Kaohsiung on Dec.2, 2013, docking at the sixth Terminal. She is 71,821 MT in total weight and has a carrying capacity of 6350 TEU. She is serving the West Coast America (PSW3) route : Hong Kong - Yantian - Kaohsiung - Keelung - Los Angeles - Auckland - Pusan - Kwang yang - Keelung - 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 : ) Port of Kaohsiung, Taiwan International Ports Corporation, Ltd. No.62, Lin Hai 2nd Road, Kaohsiung Taiwan 80443, R.O.C Tel : Fax : Website :

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

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