| |
 |
| Lin Ling-San, Minister,
Ministry of Transportation and Communications (MOTC),
Taiwan, Republic of China |
Port of Kaohsiung
Taiwan has big plans for the the marine transit hub of
Kaohsiung, writes Lin Ling-San, Minister of Transport and Communications
Taiwan’s port of Kaohsiung is the marine
transit hub for East Asia and South Taiwan, covering 2683 hectares, with
a natural harbour and two access channels to the sea of 11 and 16 metres
depth respectively. At present, 118 berths include 25 container berths,
which can take the 6000-TEU post-Panamax container ships.
As a major world port, Kaohsiung has worldwide shipping
links, with 372 shipping routes extending to 367 ports in 102 countries
on five continents. Its business potential is enormous.
In 2002, the volume of container traffic was 8.49m TEUs,
making Kaohsiung not only the largest international commercial port in
Taiwan, but one of the largest container ports in the world. All the well-known
global container shipping companies have their own container berths in
the port.
 Improving
the transhipment centre
Recent enhancements to facilities and services at Kaohsiung include the
following:
- Cargo stevedoring and contracting services.
From 1 January 1998, shipping cargo loading and unloading contractors
have undertaken operations and hired their own workers. Free contracting,
furthermore, has helped maximise the efficiency of loading and unloading.
- Deregulation of operational restrictions.
Private companies are permitted to use the port’s container berths.
Forwarders can prepare their own loading and unloading equipment, or
rent equipment from the Kaohsiung Port Bureau (KHB), which implements
a flexible rate, a reasonable port price, and a simplified charging
system.
- Promotion and practice as Offshore Shipping
Centre since 19 April 1997. The Port of Kaohsiung is currently
the only port in Taiwan which has direct shipping links with the PRC,
and has opened the direct sailing of mother ships. At the same time,
cross-Taiwan Strait trade cargoes are free to come in through a third
country. This offers a variety of trade opportunities for forwarders.
Other advancements planned for the future include the following:
- Privatisation of port business including leasing
out of container berths for private companies. At present 23
container berths are entirely leased out to distinguished shipping companies
such as Evergreen Marine, Wan Hai Lines, OOCL, APL, Yang Ming Line,
Hyundai Merchant, Hanjin, Maersk Sea-Land and NYK.
- BOT (Build-Operate-Transfer) or joint
venture methods are being used to establish container berth operation,
for instance, the 78-81 berths of the new container terminal (number
5).
- Apart from basic construction work, all types of construction will
continue to be privatised, for example, water supply, mooring and unmooring.
 Challenges
for the maritime hub
The direction for international and commercial ports in the 21st century
is toward the integration of logistics, commercial, financial, and information
flows. In order to satisfy the needs of such complex environments, the
Port of Kaohsiung must face the challenges and find solutions, identified
as follows:
- Commercialisation of port operations. The
Bureau, together with shipping lines and related companies, will construct
terminal facilities and undertake an integrated operation, keeping pace
with the global trend toward economic liberalisation and internationalisation.
Private sector partners can leverage development of projects using financial,
technical and information resources on a wholly-owned, joint venture,
or merger basis.
- Requisition from shippers for elevating service
quality. Due to the advance of shipping technology and the increasing
size of container ships, we will upgrade the terminal and port facilities.
This will promote the efficiency of facilities and optimise the speed
of ships in the port. As a leader in electronic communication, the port
will have installed a digital, value-added, electronic operation platform
to meet the requirements of shipping.
- Strong competition among ports. Answering
the demand of international trade and regional economic development,
the government has expanded investment and technology transfer into
the port, and has been supporting the facility expansion and construction
of new port areas. In addition, this policy will add strength to port
competitiveness. To remain a top competitor for shipping business, the
port authority will strive to form strategic alliances and provide integrated
services for customers.
- Confrontation from low-cost competitors. Newly-emerging
ports may offer brand-new facilities, operate along the latest optimum
lines, and enter the market with low-price strategies. All the above-mentioned
will inevitably pose a substantial threat to the port. Moreover, during
the next five to ten years, the supply of port container capacities
in Asia is expected to exceed demand. Consequently, we will adopt ‘non-price’
additional values, specifically the superior quality and best-fit service.
With this management approach, we can overcome price competition (which
cannot be avoided), and maintain our high competitiveness.
- Application of port strategy – competition,
and cooperation with shipping lines. For the sake of reducing
costs, shippers will consolidate shipping routes, even operating wharves
by themselves. This course will widen the opportunities for synergy
between shippers and the port administrators. Such measures are expected
to be mutually beneficial.
- Diversification of port services. The
functions of international shipping are changing, with management of
the global supply chain changing the needs of shippers. The Port of
Kaohsiung is undertaking to set up a multifaceted array of services.
- Relation between the port and Kaohsiung City.
The connection between the port and Kaohsiung City is growing
year by year, with the coordination of the city and port plan, environmental
protection measures, and public water recreation facilities within the
port. This friendship strengthens both planning and operations in the
port area.
Facing the above-mentioned operational challenges, the
Port of Kaohsiung will implement the following measures.
Supporting policies and systems
- Revising KHB from public-run status to a public
entity. Whether it is a public-run port or a private-run port,
operating ability will not be influenced. Indeed, internationalising,
liberalising, and operating and managing abilities are the main elements
in judging the operating ability of a port. The Taiwan government currently
plans to pass legislation with the purpose of changing KHB’s status
from governmental department to a public entity. This policy will raise
port competitiveness and maintain port resources by introducing a new
management team.
- Encouraging private sector investment in port
facilities. To accelerate the pace of port infrastructure development,
increase service quality and lower the government’s financial
burdens, KaoPort plans to encourage the private sector to join port
construction based on the BOT model. Such cooperation will not only
strengthen the relationship between KaoPort and private sector partners
but also develop a win-win partnership.
- Adopting a flexible port charges system.
Currently, port charges for services rendered by the port are charged
at a fixed rate. However, considering the port development, supply and
demand, and other environmental trends, KaoPort will consider implementing
flexible service-fee policies at an appropriate time, in order to reduce
shippers’ burdens and increase the port’s competitiveness
in the global market place.
- Developing cross-Taiwan-Strait transportation
(air and sea) links. Integrating the transportation (air and
sea) networks on both sides of the Taiwan Strait will enable us to join
the global market. By doing so, KaoPort will create added value through
shortening both time and distance.
- Developing and integrating information systems.
Introducing a system which integrates data generated and used by the
port, aboard vessels, in commerce, and by Customs and Immigration authorities
will enable all operations to be applied online, providing best service
quality to shippers and related firms.
- Establishing overall marketing and professional
knowledge. Apart from actively implementing customer-orientated
services and establishing partnerships, interactive relationships with
surrounding communities are emphasised. Furthermore, in order to cope
with market competency, KaoPort will establish a knowledge-based database,
and cooperate with universities in training future professional people.
Improving capital infrastructures
- Establishing a Free Port Zone. To attract
global shipping logistics business, the Port of Kaohsiung is actively
pursuing trade liberalisation and internationalisation to improve the
flow of products. Subsequently, in line with central government policy,
competitiveness and growth would improve by establishing a free port
zone.
- Expanding the port’s logistics competency.
Thanks to KaoPort’s perfect geographical location, it plays
several critical roles, such as Asia-Pacific transhipment centre, cargo
distribution centre, planning centre and shipping gateway to the China
market for multinational enterprises. The Port of Kaohsiung will turn
into an integrated logistics port for cargo transport, multiple-country
consolidation (MCC), packing, storage, information and other added-value
services.
- Opening a number of wharves for recreational
use. By the end of 2002, the Port of Kaohsiung plans to have
opened several of its wharves as a waterside recreation area, in order
to provide citizens with additional recreation space, while also raising
the image of the port.
- Constructing an exclusive container-transport-use
road within the port. A new road exclusively for container-transport
is under construction between container terminals three and five, with
completion expected by the end of 2003. It will provide service for
container-transport use only, without escorting by custom officials,
and will lower operating costs for shippers.
- Offering facilities capable of supporting
global container collecting and distribution activities. To meet
the needs of increasingly large vessels, as well as the growth needs
of the port, the Port of Kaohsiung will continue to increase wharf water
depths. In addition, KaoPort will build a new container terminal (No.6)
and a new offshore deep-water container terminal.
Conclusions
The goal of all our projects is to better the operating conditions for
shippers. We implement privatisation, make the law reasonable for stevedore
hiring, and free up stuffing and stripping for forwarders. We are also
examining the port rates, to cut shipping costs and elevate port services.
After the enactment of the Free Port Zone Management Act, the Ministry
of Transportation and Communication (MOTC)in the ROC will endeavour to
establish a Free Port Zone in order to provide plentiful resources for
shippers.
In an international perspective, the MOTC will continue
to work with the Minister of Finance and Minister of Foreign Affairs to
sign contracts of reciprocal exemption with respect to income tax on shipping
enterprises with other countries. Accordingly, our shippers and carriers
can reduce their operational expenses and also increase their international
competitiveness.
Meanwhile, as a member of WTO, the government has assisted
shippers and carriers in asking all countries to open maritime transportation
markets and increase operational space through the WTO mechanism. Moreover,
our shipper and port business is now facing the impact of changing markets
and high international competency. Harnessing the combined powers of government
and private sector properly, shipper and port business has a bright future.
In addition to its excellent harbour conditions and central
position on the Asia-Pacific region’s shipping routes, the Port
of Kaohsiung’s surrounding land, developed industry and plentiful
imported cargoes all assist KaoPort in its continued development as an
Asia-Pacific marine transhipment centre and global logistics distribution
centre.
With the support of government policy, and welcoming the
investment of forward-looking industries and shipping companies wishing
to use the port as an operational base, KaoPort holds outstanding promise
of achievement from every perspective, present and future.
Author: Lin Ling-San, Minister,
Ministry of Transportation and Communications (MOTC).
Website: www.motc.gov.tw
|
|
