TIPC to Invite Private Investment to Set Up Logistics Subsidiary

To strengthen Taiwanese commercial ports' logistics capability, the Taiwan International Port Corp. (TIPC), a government-funded port operator, has decided to invite private investment across East Asia to set up a logistics subsidiary, according to the firm.

The subsidiary is scheduled to start up as early as June 2014, with registered capital of NT$2 billion (about US$66.67 million) and TIPC the largest shareholder. Presently, TIPC has begun soliciting private investments from potential partners overseas for 60% of the subsidiary's initial paid-in capital of NT$500 million (US$18.9 million). This is the first time for TIPC to raise private funds for a business.

TIPC emphasized that the fundraising for the planned subsidiary is open to logistics operators or large-sized shippers at home and from abroad, particularly foreign partners with competitive international logistic capability from Japan, Singapore and Hong Kong. By inviting globally competitive partners to fund the subsidiary as co-founders, TIPC aims to boost Taiwan's logistic competitiveness in the Asia Pacific.

The subsidiary will provide a full spectrum of logistic services, including trading, warehousing, transiting, transshipping, container consolidation, assembling, sorting, packaging, cargo inspection and checking, forwarding, freight forwarding, etc., as well as operating bonded warehouses and logistics centers.

Also notable is that the subsidiary will set up a logistics park in the Kaohsiung Port, Taiwan's largest commercial port by container handling volume, for multi-nation container consolidation (MCC). To support the plan, TIPC said that a modernized public warehouse area spread over 12.5 hectares in the port has been developed, and is scheduled to be completed in early 2014. This will help not just the subsidiary to tout its MCC services targeting carriers from ports in China and Southeast Asia, but also Kaohsiung Port to drive its annual container throughput and global profile.

By establishing the subsidiary, TIPC expects to boost Taiwanese commercial ports' total container handling volume to 18 million TEUs (twenty-equivalent unit) by 2016, when overall revenue and cruise passenger traffic will hopefully reach NT$30 billion (US$1 billion) and 1.3 million people. (SC)

Overall Performance of Taiwan's Commercial Ports Administrated by TIPC
Year	2012	2013 (estimated)	2016 (forecast)
Container Handling Volume	13.88 million TEUs	14 million TEUs	18 million TEUs
Revenue	NT$15.9 Bn.	NT$19.0 Bn.	NT$30.0 Bn.
Cruise Passenger Traffic	700,000 people	860,000 people	1.3 million people

Source: Taiwan International Port Corp.