Taipei Port To Become Major Harbor for Auto Industry

Taipei, Nov. 3, 2005 (CENS)--Tonglit Logistics Co., Ltd., Taiwan's largest automobile logistics service provider, recently received permission from the government to inaugurate a free trade zone at northern Taiwan's Taipei Port.

The free trade zone at Taipei Port is expected to help it replace Keelung Port as the largest import and export harbor for Taiwan's automotive industry. The projected annual import/export value for the new free trade zone is about NT$30 billion (US$895.52 million at US$1: NT$33.8).

Local China Motor Corp. (CMC) recently became the first domestic carmaker to enjoy tax-free entrepot transactions for its auto-parts exports. All major automakers on the island are expected to follow soon.

Tonglit decided to set up an automobile logistics center at the Taipei Port with a total investment amount of about NT$400 million (US$11.94 million at US$1: NT$33.5) because most local carmakers run production plants in northern Taiwan's Taoyuan and Hsinchu counties. Tonglit wants to utilize the new automobile logistics center to provide services such as forwarding, damage control, transhipment, storage, and customs clearance. The logistics center recently won the government's permission to operate as a free trade zone.

Tonglit's affiliated Sunlit Transportation Corp. currently provides transportation for most of Taiwan's automakers and car importers.

CMC claimed that the tax-free entrepot trade zone is expected to increase the export competitiveness of its complete autos and parts. Last year, CMC exported NT$15.8 billion (US$471.64 million) worth of complete cars and parts.

CMC said that it decided to transfer its export shipments to Taipei Port from Keelung Port because about 80% of the company's largest parts suppliers are located in northern Taiwan, and because Keelung Port only has a limited ability to process cargo.

Chung His-yuan, CMC vice president, said that the automobile logistics zone at Taipei Port is expected to cut intra-island transportation time and to upgrade his company's export shipment efficiency.

Yulon Motor Co. (the local partner of Nissan of Japan) previously has exported complete cars and auto parts from central Taiwan's Taichung Port. Yulon recently said that it would transfer its export shipments to the new free trade zone at Taipei Port due to the limited number of automobile-transportation cargo ships that stop at Taichung Port.

Ford Lio Ho Motor Co. (a local subsidiary of Ford of the U.S.) said that its imported automobiles previously have been transported to Keelung Port by ship, and then to its plant in the northern city of Chungli by truck for final pre-delivery preparations. With the establishment of Tonglit's automobile logistics center at Taipei Port, Ford Lio Ho plans to rent an area there from Tonglit for pre-delivery preparation work. Ford Lio Ho also plans to directly contract with Sunlit to deliver the imported cars to distributors around the island in order to cut costs.

Hotai Motor Co. Ltd. (the Taiwan agent for both locally made and imported Toyota cars) also expressed willingness to transfer its complete-auto and parts importing center from Keelung to Taipei.