1. Keelung Port’s Strategies in Coping with the Competition of Taipei Port Container Terminal Ms Madeleine Huang Chinese Taipei

2. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Outline 1.Introduction of Taipei Port 2.Market Share of TPCTC 3.Impact on Keelung Port 4.Strategies

3. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Taipei port Keelung port 1) Northern Taiwan 2) Outside Metropolitan Taipei 3) At the influx of transpacific, northeast and southeast Asia 1. Introduction of Taipei Port

4. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Natural limits of Keelung port 1) Water depth 2) Berths length 3) Room for container backyard Auxiliary port Competition

5. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 1)First B. O. T. (build, operate, transfer) project applied in Chinese Taipei’s ports 2)Total investment US$ 600 million 3)7 berths with 2,366 meters in length and 110 hectares in area (12,508 TEU, Emma) 4)Successful bidder: Taipei Port Container Terminal Corp. (TPCTC), formed by Evergreen, Wanhai and Yangming shipping lines. Taipei Port Container Terminal

6. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Shareholders of TPCTC

7. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Taipei Port Container Terminal

8. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 The estimated container handling volume of Taipei Port Unit: thousand TEU

9. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 2. Market share TPCTC in 2005 Unit: thousand TEU

10. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Target Market of TPCTC Regional Import/Export Cargo Oceangoing Container Trucked between North and South Transshipment

11. Estimate of Container Distribution Year20072008200920102011201220132014 Taipei PortImport/export02764516197009001,1501,400 Transshipment0169279368500700850950 Total04459309871,2001,6002,0002,350 Keelung PortImport/export2,0401,9201,9301,8401,8201,8001,7301,650 Transshipment110100110120110 90100 Total2,1502,0202,0401,9601,9301,9101,8201,750 Import/export(Returning from Kaohsiung to Taipei) 0136301379400550700850 Import/export(shifted from Keelung to Taipei) 0140150240300350450 550 Transshipment(shifted from Kaohuiung to Taipei) 0130240320420600700800 Transshipment(shifted from Keelung to Taipei) 010 30 50 Extra volume for TPCTC to lure from new market 029 385070100 Unit: thousand TEU

12. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 3. Impact on Keelung Port Unit: thousand TEU, thousand USD

13. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 1) Improvement of Infrastructure 2) Upgrade of Service Quality 3) Competitive and flexible port tariff 4) Cost Reduction 5) Reform of Port Organization and Operation System 4. Strategies for Keelung Port

14. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Extending eastern breakwater Dredging program of main channel and container berth ． Filling water area between w18-w19 ． Filling water area between w20-w23 (in the long term) ． Filling water area between w20-w23 (in the long term) Outward Connecting Road Scheme Improvement of Infrastructures

15. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 5 Port of Keelung Extending Eastern Breakwater ． 30 Million USD ． Finished by the end of 2008 1400 m 200 m

16. 港區範圍修訂 ( 近程 96 ～ 100 年 ) Dredging programDredging program - main channel and container berth - main channel and container berth 650M -14.5M -15.5M

17. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Filling water area to create backyard space Construction to finish: 2008.12.31 Create Land area: 1.8 Hectare(1860TEU). W18 W19 324M 364M

18. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 62 Outward Connecting Road Scheme Highway No.3 Highway No.1 East Bank Outward Connecting Road (181 Million USD) Widening Changshang Road (92 Million USD)

19. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Upgrade of Service Quality Guarantee of handling efficiency Development of Free Trade Zone

20. Keelung Free Trade Zone FTZ area: Wharf E6 to E22 and Wharf W11 to W33 （ 68 hectare ） 9 FTZ enterprises operating in FTZ Area. East Bank West Bank

21. TK International Logistics Co. Ltd 1.Main Shareholder: Wan Hai Lines 2.Total Area: 7 hectares 3.Total Investment: 19.5 million USD

22. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Provide More Competitive Port Tariff Service Contract Release the Restriction of Discount

23. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Cost Reduction Incentive Retirement Scheme Outsourcing Low Profitable Businesses

24. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Reform of Port Organization and Operation Systems Shipping Administration Harbor Administration Business Operations Corporatization

25. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007