Taiwan ports crank up plans for free trade
The island's harbour authorities hope the zones will revive its competitive edge
Ports in Taiwan are gearing up to regain competitiveness by planning to set up free-trade zones after a new legislation is in place.
The Taiwan government this month passed the Free Trade Harbour Zone Statute, which features favourable tariff rates, free flow of products, processing for re-export and one-stop administrative processes, to help it regain competitiveness.
The Kaohsiung Harbour Bureau has established a committee to draw up plans for a free-trade zone while the Taichung Harbour Bureau is setting aside land for development.
The Keelung Harbour Bureau finished drafting a development plan a week ago and is in talks with the private sector to lure investors.
'We hope to attract more transshipment to our port. The setting up of a free-trade zone will also help revive the local industry, thus boosting cargo volume,' a Keelung executive said.
The northern port in Taiwan, with throughput of 970,000 teu (20ft equivalent units) in the first half, will reserve more than 30 hectares for the free-trade zone.
In the first phase, 17 berths and the back area will be included for development. Another four berths will be added in the second phase.
Keelung will start inviting investors at the beginning of next year and construction will start in 2005. It will be operational in 2006.
'We always have proposals to revive our competitiveness. This is a match-up plan with the recent legislation,' the executive said.
Ports in Taiwan are facing fierce competition from the mainland.
Shanghai port last year surpassed Kaohsiung port - the busiest in Taiwan - to become the world's No4. Shanghai handled 5.2 million teu in the first half, up a comparative 35.6 per cent.
Throughput at Shenzhen port in southern China jumped a comparative 42 per cent in the first six months to 4.6 million teu, against 4.34 million teu at Kaohsiung.
Teng Yu-i, deputy director at the Kaohsiung Harbour Bureau, said the committee would specify plans for the free-trade zone development, aiming to attract business.
'We want to have it ready as soon as possible. Not only can we increase the number of transshipments, the duty-free environment will attract production plants and better exports,' Mr Teng said. 'We are ... drafting a preliminary plan.'
The Taichung Harbour Bureau is also preparing with plans to turn six berths and 30 hectares of land into a free-trade zone. A spokesman said the bureau had no timetable for the plan.
