1. Infrastructure and Shipping in Taiwan
Taiwan International Ports Corporation
Vice President, Mr. CHANG, Kuo-Ming

2. Agenda 1.Trades and Shipping of Singapore and Taiwan
2.Global Shipping Trends
3.Taiwan’s Key Challenges
Of Ports
4.Infrastructure Responses
to the Challenges
5.Conclusions

3. 1. Trades and Shipping of Singapore and Taiwan
Data of 2015
Population: 5.54 million
GDP (Current Price) : US$ 292 billion
Merchandise Export Value : US$ 336 billion
Merchandise Import Value : US$ 288 billion
Container Volume: million TEU
Data of 2015
Population: million
GDP (Current Price) : US$ 524 billion
Merchandise Export Value : US$ 280 billion
Merchandise Import Value : US$ 229 billion
Container Volume: million TEU

4. 1. Trades and Shipping of Singapore and Taiwan
Singapore is Taiwan’s 5th export trade partner and 7th import partner. Taiwan is Singapore’s 5th import partner. Both play an important role in maritime field.
Trade Statistic of Taiwan, with Singapore
(in million USD)

5. 1. Trades and Shipping of Singapore and Taiwan
Loaded Container Singapore/Taiwan Ports
(in TEU)
Shipping Routes connecting Singapore and Taiwan
Total
Kaohsiung
Taipei
Keelung
Taichung 40 36 7 5 3

6. 2. Global Shipping Trends
Market Demand and Supply
FE- Europe trade’s utilization maintains around 80% in 2nd half of As the market went down, this year utilization falls to below 80%.
The situation of FE-US trade is better than Europe trade. The utilization maintains above 80%.
Liners and shipping alliances keep adjust the capacity supply to lift the utilization.
Source: Alphaliner

7. 2. Global Shipping Trends
Mega Container Vessels
, average new vessel size grew from 2,000 TEU to 3,500 TEU.
, average new vessel size grew from 4,000 TEU to 6,200 TEU
, maximum vessel size grew from 9,000 TEU to 15,500 TEU

8. 2. Global Shipping Trends
Shipping Alliance Reshuffle
Source: Alphaliner

9. 2. Global Shipping Trends
Shipping Alliance Reshuffle
2016/4/20, CMA-CGM/COSCO/Evergreen/OOCL signed a MOU to form the “OCEAN Alliance”.
The proposed new alliance will cover some 350 vessels and initially more than 40 shipping routes.
The new alliance plans to begin operations in April 2017.
Source: Alphaliner

10. 3. Taiwan’s Key Challenges of Ports
Rising Competition from Nearby Ports
China’s southern ports keep upgrading their port infrastructure and offer port tariff incentive programs to attract liners. Also, the ports in Southeast Asia built deep water container terminals to attract direct calls of the inter-continental routes. These competitions might impede the hub role of Taiwan’s ports in East Asia.
Requirement of Infrastructure Upgrade
The size of 18,000 TEU container vessels or above requires at least -17m draught of berth. Additionally, the gantry cranes need to upgrade to fulfill the new vessel size. Also, liners ask for high efficiency and time-saving loading/unloading operations.
Weak Demand of Import and Export
The global economic growth has decreased again and is expected to recover at a slower pace. The weaker economic environment hinders inter-continental and regional trade volume. Therefore, it has a negative impact on the performance of shipping industry and ports in Taiwan.

11. 4.Infrastructure Responses to the challenges
TIPC
Kaohsiung
An-ping
Taichung
Hualien
Taipei
Su-ao
Keelung
Taiwan International Ports Corporation(TIPC) was founded on 2012/3/1, 100% share owned by Ministry of Transportation and Communication.
TIPC is tasked to handle comprehensive port operations and enhance operational efficiencies.

12. 4.Infrastructure Responses to the challenges
Continuingly improve port infrastructure and provide a better port service, including
Dredge navigation channel and berth,
Upgrade equipment and facilities
Improve access roads of the ports

13. 4.Infrastructure Responses to the challenges
Dredge navigation channel and berth
Port
Draught of Navigation Channel
Draught of Container Vessel Berth
Project Content
Keelung
-15.5m-16.0m
-10.0~-14.5m
W18 wharf dredging
W2-4 wharf dredging
Navigation channel and turning basin dredging
Taipei
-17.5m
-12.0~-16.0m
S09 wharf construction
Navigation channel dredging
Taichung
-16.0m
-13.0~-14.0m
#32-35 wharf dredging
#5A.5B wharf dredging
Kaohsiung
1st Entrance:-12.5m
2nd Entrance:-17.0m
New Outer Entrance:
-22.0m
-10.5~-17.6m
#56-57, #61-62 wharf dredging

14. 4.Infrastructure Responses to the challenges
InterContinental Phase II (Port of Kaohsiung)
Infrastructure Budget: USD 682 million
Period: 2011~2019
Area: 484 ha.
Shoreline Length: 7,040m
Total 19 berths

15. 4.Infrastructure Responses to the challenges
Petro-chemical Center
256.8 Ha.
Container Terminal
162 Ha.
Content: Relocate original petro-chemical wharfs and tanks, and build new deep water container terminal to accommodate large container vessels.

16. 4.Infrastructure Responses to the challenges
InterContinental Phase II (Port of Kaohsiung)
Sub-project
Budget
Time
Seawall & Breakwater
US$ 270 million
2012/3~2017/12
Shoreline & Dredging
US$ 272 million
2013/4~2018/5
Land Reclamation
US$ 140 million
2015/11~2018/6
S4~S5 Container Terminal
US$ 123 million
2015/5~2018/4

17. 4.Infrastructure Responses to the challenges
Business Diversification
To react to the weak demand of global economic, we take some actions to diversify the port operations:
Actively develop multi-country consolidation(MCC), LME, etc. new business types.
Develop cruise tourism and make Port of Keelung become cruise home port.
Transform old harbor area of Kaohsiung Port and promote water-front recreation to attract more tourists.

18. 5. Conclusions
Continuingly investing port infrastructure can provide a more efficient port operation service for shipping industry.
Good shipping industry provides a great environment for economic / trade booming.
Growing economic creates demands for infrastructure. Then government keeps input resources to port sector.

19. Thank You!!