NYK continues its lease in the Port of Kaohsiung as its base for the Asia Pacific

NYK continues its lease in the Port of Kaohsiung as its base for the Asia Pacific A ceremony to mark the signing of a 2-year berth lease extension agreement between NYK Lines and the Kaohsiung Harbor Bureau (KHB) was held at 10am on 1 June in the main KHB Administration Building. KHB Director-General Hsieh Ming-hui and NYK Logistics Taiwan President Keiji Ushiyama officiated at the signing ceremony. In an official statement, the Bureau noted that Berth No. 121, the subject of the NYK lease extension agreement, is situated in Container Terminal 4 and has been under continuous lease by NYK since 1992. NYK makes strategic use of the Port of Kaohsiung as a center for its Asia-Pacific business operations. Supported by highly efficient stevedoring operations, fast cargo handling and strong operational and administrative teams, NYK s business through the Port of Kaohsiung broke the 400,000TEU milestone last year (2008). NYK operates its berth to near capacity, and NYK s container cargo traffic represents an impressive 4.23% of total containerized cargo handled through the port. NYK has been a strong and consistent supporter of container traffic growth and route expansion at the Port of Kaohsiung. During these difficult economic times, typified by reduced global shipping demand and heightened competition for business amongst ports, NYK s decision to continue basing a key center of business operations in Kaohsiung reflects the success met by the KHB in long running efforts to enhance port service quality and operating environment as well as to position the Port of Kaohsiung as a highly competitive center for cargo transshipment and shipping logistics. The advent of direct shipping links between Kaohsiung and China has given a significant boost to cargo volumes handled by the Port of Kaohsiung. Looking ahead, the KHB will continue to enhance services, raise service quality and operational efficiencies, and work closely with shipping companies to further reduce the cost of doing business at the port. Our ultimate goal has been, and remains, creating a highly competitive environment for international shipping. 1

Expanding business opportunities for Kaohsiung Free Trade Zone On June 19, 2009, the Kaohsiung Harbor Bureau (KHB) held a symposium on The current and future development strategies for the Kaohsiung Free Trade Zone, hosted by Deputy Harbor Master Huang of KHB. Participants included representatives from the shipping industry, government, and academic circles. Based on remarks of Deputy Master Huang, it appears the Ministry of Transportation and Communications (MOTC) seeks a deeper understanding of the problems faced during the development of the Kaohsiung Free Trade Zone and their ultimate resolution, which will then serve as a reference for government policymaking in the future. In addition, through this meeting, the MOTC wishes to promote several preferential measures which the Legislative Yuan has just approved. Since the Kaohsiung Free Trade Zone is one of the Government s i-taiwan 12 projects, it has been constantly in the public eye. Kaohsiung Port is envisaged as an Asia-Pacific transshipment hub and comprehensive logistics center. To realize this vision, KHB has been working on accelerating operational efficiency, transshipment capability, and reconstruction, such as expanding the harbor area, and channel dredging to accommodate the latest generation of super-size vessels. In addition, a number of preferential statutes have been approved. For instance: (1) The easing of restrictions on inventory, allowing greater flexibility for accounting purposes (2) Trade promotion costs are now tax-exempt (3) Firms in unbounded areas are now able to apply for a tariff rebate on imported materials, and labor income under certain conditions is exempted from tax (4) Tax exemption applies to goods traded between unbounded & bounded areas and the Free Trade Zone. Industry representatives explained current practices within the Zone, and urged the government to improve operational efficiency by streamlining customs procedures. Academic representatives in turn noted that in light of the change in the government s China policy; the relaxation of logistics regulations; and the new statutes encouraging industry innovation; KHB is in a position to grasp this unique opportunity to create much greater business opportunities. 2

KHB boosts logistics business in Free Trade Zone by pushing outsourcing process forward In the 1st CEO Friendship Association meeting held by the Kaohsiung Export Processing Zone Administration under MOEA, Director-General Hsieh of the Kaohsiung Harbor Bureau (KHB) stressed that KHB will actively promote cooperation between Kaohsiung Harbor and the Kaohsiung Export Processing Zone. Streamlining the outsourcing process in the Free Trade Zone will spotlight the advantages of the Kaohsiung Export Processing Zone (KEPZ), encouraging manufacturing and processing in the KEPZ and turning it into the processing base of the Kaohsiung Free Trade Zone. Certain port areas in Kaohsiung Harbor have already been designed as a Free Trade Zone and the existing land is usage near capacity. There is very little extra land now available for the entry of new firms. It s also important to remember that the Free Trade Zone is directly adjacent to the downtown area of Kaohsiung City; hence, further land acquisition is both difficult and expensive. Since Kaohsiung Free Trade Zone is part of Kaohsiung Port, it provides significant logistical advantages. Furthermore, the Kaohsiung Export Processing Zone has a solid foundation in manufacturing, processing, assembling, researching and technical services. Co-operation between the two areas will provide a virtuous cycle of high quality goods; fast, efficient processing; and prompt delivery. KHB launches emergency measures against H1N1 Flu On April 25, 2009, the outbreak of H1N1 Swine Flu was announced to be a global public sanitation emergency by the World Health Organization (WHO). This requires the close monitoring of any unusual flu developments or serious pneumonia in order to prevent the spread of the H1N1virus. To deal with the frequent passage of vessels in and out of the port, as well as the close interaction among its own staff, the Kaohsiung Harbor Bureau (KHB) has implemented the following measures: 1. To form an emergency team 2. To set up a special customs point to deal exclusively with the epidemic 3. Should a case be reported from a shipping company or agency in which passengers or crew have a fever and have recently been in a country where H1N1 is present, the standard operating procedures of the Kaohsiung Harbor sanitation emergency team will 3

be implemented immediately and the flu-infected patients sent to hospital. 4. To promote individual hygiene, in accordance with guidelines issued by the Center for Disease Control. KHB has adopted these precautionary measures in coordination with the Bureau of Animal and Plant Health Inspection, Quarantine authorities, the Kaohsiung Customs Bureau, the Coast Guard Administration, Port Police Station, and Port Fire Station. KHB continues fruitful partnership with NCKU The Kaohsiung Harbor Bureau (KHB) signed a Partnership Agreement with the National Cheng Kung University (NCKU) on June 4, 2009, in a ceremony presided over by Director-General Hsieh of KHB and Senior Executive Vice President Feng, and witnessed by nearly 100 people. Senior Executive Vice President Feng emphasized that the Port of Kaohsiung makes an immense contribution to, and has great influence on, the national economy of Taiwan. Given the current, intense level of competition between ports, the new Partnership Agreement is expected to become something of a strategic alliance; which will enable the highly-skilled staff at NCKU to assist the Port of Kaohsiung in its search for greater competitiveness. Director-General Hsieh in turn noted that the NCKU is an international university with a high reputation, in the fields of both engineering and management, recognized throughout domestic and overseas markets. The long-standing participation of NCKU alumni has made a great contribution to the Port of Kaohsiung. The Port of Kaohsiung has certainly suffered from the consequences of the global economic downturn. KHB intends to overcome its difficulties in part by upgrading its R&D and think-tank capabilities with the assistance of NCKU. In addition, Director-General Hsieh shared his thoughts on port management, current shipping developments, the need to balance Port development with the green economy, and some of the challenges facing today s university students. 4

KHB renews partnership with NSYU On June 12, 2009,the Kaohsiung Harbor Bureau (KHB) signed a fourth Partnership Contract with National Sun Yat-sen University(NSYU), in a ceremony presided over by Director-General Hsieh of KHB and President Yan of NSYU. The results of the cooperation agreements between the two sides since 2001 have been both tangible and significant. Co-operation to date has contributed substantially to areas such as personnel training, research projects, symposiums, and the establishment of a think-tank that provides important input into the shipping, transportation, logistics, finance, environmental protection, and engineering fields. For instance, over the last two years NSYU has provided KHB with valuable insights into marine environmental protection and pollution control; a better understanding of marine ecology (especially coral); and the latest research on the loading & unloading of hazardous goods and collision management. KHB hosted the lecture with CJCU In an attempt to strengthen port competitiveness, the Kaohsiung Harbor Bureau (KHB) and Chang Jung Christian University, invited specialists from the university to deliver a series lectures on subject port management. The opening ceremony took place on March 30, 2009, and was presided over by both Director-General Hsieh of KHB and Director Ji of CJCU. Participants included KHB staff and personnel from shipping-related companies, for a total of more than 50 people. Director-General Hsieh of KHB remarked during the ceremony that the Port of Kaohsiung has recently faced unprecedented challenges, including a large decline in container volume (attributed to the effects of the global economic downturn), intense competition from neighboring ports in the Asian-Pacific region, and the impact of China. In order to better cope with the demands of an ever-changing shipping market, and to put into effect state-of-the-art port management, KHB intends the lecture to promote port development and broaden the Port staff s horizons through the support of the CJCU. 5

The maiden voyage of ASIA STAR The Panamanian registered cruise ship M/V ASIA STAR, represented by Jardines Mateheson & Co.,LTD made its maiden visit to the Port of Kaohsiung on May 7, 2009 from Shantou Harbor, berthing at Wharf No.2. The M/V ASIA STAR, with 361 passengers on board, took a three-day tour of Taiwan and departed on May 9, 2009. In response to the outbreak of H1N1, the shipping company reported the health status of all passengers and crew to the Center for Disease Control and Prevention (CDC) 72 hours before arrival. Upon arrival, CIQS (Customs, Immigration Agency, CDC, Port Police Station) carried out an inspection. The M/V ASIA STAR weighs 20,295 tons and measures 131 meters in length and 32 meters in width. It was arranged to berth at Fishermans Wharf, which is adjacent to downtown Kaohsiung. The Kaohsiung Harbor Bureau (KHB) also arranged a welcoming ceremony and a number of visitor-friendly services in an effort to make a good impression and provide fond memories for the visiting tourists. Chinese expedition vessel the Snow Dragon The National Museum of Biology & Aquarium, Cheng Hiu University and Dong Hwa University each formed student groups to cooperate with scientists aboard China s expedition ship the Snow Dragon ( Xuelong in Chinese), on its return from the Antarctic where it was involved in South Pole scientific research. At the invitation of the National Museum of Biology & Aquarium, the Snow Dragon arrived at Kaohsiung Port on its way back from the South Pole. The Snow Dragon was open to visitors on April 2 & 3 at Wharf No.11. The ship s visit to Taiwan was regarded as an important first step for Cross-Strait polar studies and cooperation, one which will hopefully lead to further polar exploration and scientific exchanges in a number of areas between the two sides. 6

A delegation from Fujian Province in China A 12-member transportation delegation from Fujian Province in China was invited for a visit by The Global Logistics Council of Taiwan for enhancement of cross-strait trade development. The delegation paid a visit to the Port of Kaohsiung on May 8, 2009 and was escorted by the Deputy Port Master on a tour of the port. Both sides exchanged ideas on logistics and current port development. The M/V Doulos, oldest liner in the world, visits Taiwan The oldest ocean-going passenger liner in the world, the M/V Doulos, made her seventh visit to Taiwan on April 2, 2009. In light of a new International Marine Regulation, this was probably the M/V Doulos s last voyage. She held an onboard book fair at Kaohsiung s Fisherman s Wharf from April 3 to April 28, departing for Keelung Port in May. The M/V Doulos, built in 1914, is the world s oldest ocean-going passenger ship, according to the Guinness Book of World Records. She is now owned by the German charity Good Books for All, which commits itself to promoting quality books throughout the world. Her floating bookstore is a collection of more than six thousand books covering science, sport, hobbies, cooking, Christianity, and children s books. The M/V YM UNIFORM A newly-built vessel, the M/V YM UNIFORM, owned by Yang Ming Marine, made her maiden voyage to the Port of Kaohsiung on April 6, 2009, berthing at Wharf No. 70. The M/V YM UNIFORM, delivered in March, weighs 90,607 gross tons and measures 335 meters in length, 42 meters in width, and 14.5 meters in draft. She is capable of carrying 8,200 TEU. She is currently serving the Asia-Europe route (AE3): Tianjin New Harbor- Qingdao -Shanghai Ningbo Kaohsiung Hong Kong Singapore Port Said Rotterdam Felixstow Hamburg Antwerp. 7

The M/V ADRIATIC BRIDGE The Liberian registered M/V ADRIATIC BRIDGE, belonging to the Taiwan Kawasaki Kaisha (K-Line Taiwan), made her first call at the Port of Kaohsiung on May 10, 2009, berthing at Wharf No.120. Delivered in 2009, the M/V ADRIATIC BRIDGE has a total weight of 47,855 tons, a length of 264.32 meters, a width of 32.2 meters, and a loading capacity of 3,600TEU. Her service route is Kobe Nagoya Tokyo Kaohsiung. The M/V HYUNDAI GLOBAL Represented by the Hyundai Ocean Pioneer shipping service, the M/V HYUNDAI GLOBAL, out of Shanghai Port, made her first visit to Kaohsiung Port on May 7, 2009, berthing at Wharf No. 119. The M/V HYUNDAI GLOBAL weighs 94,511 tons, is 324.82 meters in length, 45.6 meters in width, and has a carrying capacity of 8,566 TEU. Delivered on April 28, 2009 in Pusan, she will join the European route (AEX) : Hakata Kwang yang Pusan Shanghai Kaohsiung Hong Kong Singapore Rotterdam Hamburg Thames Colombo. The M/V HANJIN DURBAN The Panamanian registered container ship, M/V HANJIN DURBAN, represented by Taiwan Hanjing, made her maiden voyage to Kaohsiung Port on May 2, 2009, berthing at Wharf No.70. Completed in November, 2008, the M/V HANJIN DURBAN has a total weight of 40,487 GT, a length of 261.4 meters, a width of 32 meters, a draft of 12.6 meters and a loading capacity of 4,300 TEU. She will serve the route East Coast of America North East Asia : Kaohsiung Yantian Shanghai Pusan New York Norfolk Savannah Kaohsiung. The M/V HAMMERSMITH BRIDGE Represented by Taiwan Kawasaki Kaisha, the Panama-registered ship M/V HAMMERSMITH BRIDGE made her maiden voyage to Kaohsiung Port on April 13, 2009, berthing at Wharf No.70. A newly-constructed 8,212 TEU vessel, the M/V HAMMERSMITH BRIDGE measures 98,747 tons in total weight, 336 meters in length, and 45.9 meters in width. She will serve the route: Shanghai Ningbo Kaohsiung Singapore Suez canal. (All of vessels photos are from http://www.vesseltracker.com) 8