Linking you to Asia and beyondhgyang/pm-e5.pdf · Why Taiwan III. Taiwan FTZ Advantages IV. Industrial Introduction V. FTZ in Taiwan. 3 Technological advances in networking, telecommunication,

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Linking you to Asia and beyondLinking you to Asia and beyond

2

I. BackgroundI. Background

II. Why TaiwanII. Why Taiwan

III. Taiwan FTZ AdvantagesIII. Taiwan FTZ Advantages

IV. Industrial IntroductionIV. Industrial Introduction

V. FTZ in TaiwanV. FTZ in Taiwan

3

Technologicaladvances in

networking, telecommunication,

& information

Economicliberalization

Capital marketformation

The importance of internationaltrade

The importance of port economics

The role ofmultinationalcorporations

GlobalizationGlobalization

Globalization of world economy bolsters the increasing Globalization of world economy bolsters the increasing importance of international trade and the roles of ports importance of international trade and the roles of ports and and MNCsMNCs..

BackgroundsBackgrounds

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The increasing importance of airThe increasing importance of air--/ seaports/ seaports

Distri

butio

n

cente

rs

Logis

tics

cente

rs

Trans

port

cente

rs

Airpo

rts/

Seap

orts

Networking & Informationalization

Eco

no

mic L

ibera

lizatio

n

Inte

rnatio

naliza

tion


5

Upgrading

Core value-added we have

Innovation R&D Manufacturer Assembly Marketing Services

Regionalize

Globalize

Localize5% 5%

Resources：MIT. Donald R.Lessard，CEDI, CEPD

Upgrading

Global LogisticsGlobal

LogisticsKnowledgeEconomy

KnowledgeEconomy

EconomicStrategy

Develop High-TechFabricating Ability

Revise Economic Developing Position Revise Economic Developing Position


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• The shortest flying time to 7 main cities of the Western Pacific: 2hrs 55 mins

Locate at the Transportation Hub of AsiaLocate at the Transportation Hub of Asia

• The shortest average sailing time to 5 major regional harbors: 53 hours

53

124

7864

110

68

Kaohsiung HK Manila Shanghai Tokyo Singapore

6:15

4:554:15 4:00

3:30 3:25 3:052:55

Sydney Singapore Tokyo Seoul Manila Shanghai HK Taipei

Taiwan

Why TaiwanWhy Taiwan

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Various Worldwide Leading Products Made by TaiwanVarious Worldwide Leading Products Made by Taiwan

75.6%Motherboard（Pure MB）

43.8%DSC

93.0%Cable Modem87.5%Server (System & Pure MB)

39.2%ODD

87.0%WLAN NIC

42.0%WLAN AP

52.1%CDT Monitor55.0%IP Phone71.5%PDA

81.0%DSL CPE84.0%VoIP Router

99.0%Motherboard (System & Pure MB)

73.4%LCD Monitor73.0%VoIP TA

87.5%Notebook PC

42.8%Large Size LCD Panel

34.9%Server (System)

WW No. 2WW No. 1Worldwide Market Share

Source: MIC/III, January 2007


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Abundant Capacity for Innovation and R&D GrowthAbundant Capacity for Innovation and R&D Growth

(2) R&D Growth(2) R&D Growth

190.52 197.63204.97

224.43240.82

260.85280.98

2.522.422.332.2

1.98 1.972.08

0

50

100

150

200

250

300

350

400

1999 2000 2001 2002 2003 2004 2005

NT$ billion

0

0.5

1

1.5

2

2.5

3

%

R&D Expenditure R&D Expenditure as a Percentage of GDP

3,693

4,667

5,371 5,431 5,298

5,938

5,118

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Case

1999 2000 2001 2002 2003 2004 2005

U.S. Patents Granted

(1) U.S. Patents Granted(1) U.S. Patents Granted


9

Full Functioning of the Industrial Clustering EffectFull Functioning of the Industrial Clustering EffectHsinchu Science Park

Electronics and InformationSoftwareOptoelectronics

KaohsiungPetrochemicalsSteel Electronics

Yunlin Technology Industrial Park

TextilesOptoelectronics

Nankang Software ParkSoftwareKnowledge Industries

Southern Science ParkOptoelectronicsMachineryFoodstuffsBiotechnologyEnvironmental Protection

Central Science ParkOptoelectronicsPrecision MachineryNanometer MaterialsAerospace


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Facilitating business activities

(streamlining procedures for granting entry and issuing landing visas to business

personnel; providing exhibition facilities and services)

Ease of financial operations

(permitting setup of holding companies for offshore

investment, and allowing OBUs to handle foreign-currency

transactions)

Rooting deeply in Taiwanwhile deploying globally

Within physical territory, but outside the customs territory

(autonomous management; exempted from customs checking and inspection, as

well as cargo tracking and escort)

Duty & tax exemption(exempt from customs duties,

commodity tax, sales tax, tobacco and wine excise tax)

Relaxing hiring ratio

for foreign workers

Allowing in-depth value-added processing(e.g. assembling, packaging,

manufacturing)

Free Trade Zones

Various Incentives for Attracting Businesses to FTZsVarious Incentives for Attracting Businesses to FTZs

Advantages of Taiwan FTZAdvantages of Taiwan FTZ

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Convenient cargo logisticsConvenient cargo logistics

Other FTZ’s

Bonded areasExport processing zone

Science Park

Tariff-liable areas

Report

Clear customs by rules

Clear customs according to rules

Report

Businesses in port

BusinessesIn port Report


FTZ area

Gates

12

Taxes reductions, exemption and rebatesTaxes reductions, exemption and rebates

Tariff-liable areas

Other FTZs

Bonded areasExport processing zone

Science ParkBusinesses

in port

Businesses in port

Duty free goods, machinery and equipment

0 Business Tax Goods exported according to rules

Gates1.Taxed as imported good2.Special rules for- inspection, processing- Re-export port-return area

Exemptions


FTZ area

Gates

According to Rules for Bonded Goods

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Applying to establish operations in an FTZ

Required documents1. Application form2. Business plan (including financial plan)3. Freight management plan4. Specifics of processing for customs clearance and account management5. Investors’ proof of identification

Submission Qualified

Operations

established

Approved

After six months in operation another assessment will be made to decide whether or not operations may follow the original business plan

Custom

s and other related departm

entsR

eview by the FTZ

Managem

ent

Jointly w

ith

Dedicated specialist are

assigned to provide assistance

Quick application Quick application process for setting process for setting up FTZ operationsup FTZ operations


14

Disem

barkation

foreign business personnel

Free Trade Zone

Visa-free (30 countries)

Landing visa (4 countries)

Visa (stay, resident)

Selective landing visa(not restricted to countries without embassy or consulate)

NotifyingForeignAirline

company

Documentscheck

Luggageclaims

Customsinspection Arrival

Urgent casesapproved and submitted via FTZ

management agency

MO

FA

(7 working days)

貳、申辦流程

Convenience for Visa ApprovalConvenience for Visa Approval

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Introduction of Industries Introduction of Industries

LogisticsLogistics

TechnicalTechnicalServicesServices

ICTICT ElectronicElectronicMaterialsMaterials

ShippingShipping

肆、產業介紹

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Scope: Transport and storage apart from passenger transportIncludes sea/land/air transport, storage, forwarding, storage/distribution, and customs clearance

A. Logistics Industry A. Logistics Industry

429.0 m tons

239.6 m tons

72.2 m tons

180,000 persons

12,000 companies

NT$800.2 billion2005

Inlandlogistics volume

Importlogistics volume

Exportlogistics volume

Number of employees

Number of companiesRevenue

Source: DGBAS’ "Survey of Employees Pay"/"2001 Survey of Commerce and Services"; Directorate General of Customs' "Entry/Exit Trade Statistics"; MOTC's "Transportation Statistics Monthly"/"Transport, Storage, and Communications Enterprise Output Value Survey"/"Transportation Yearbook"; ITRI Industrial Economics & Knowledge Center estimates/data

State of the Industry

Scale:

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‧ Steady economic growth‧ Equipment companies and technology are mature; room to grow for both foreign and domestic companies‧ Using high-tech sector to develop close-knit global supply chains‧ Many domestic companies are globalizing and deploying internationally

‧ Steady economic growth‧ Equipment companies and technology are mature; room to grow for both foreign and domestic companies‧ Using high-tech sector to develop close-knit global supply chains‧ Many domestic companies are globalizing and deploying internationally

Corporate synergy aspectsCorporate synergy aspects

A. Logistics Industry A. Logistics Industry

Competitive Advantages Competitive Advantages

III. Industry Environment

‧ Advanced logistics concepts, strong logistics technology application capabilities‧ Plentiful logistics and distribution experience‧ Development of new information technology‧ Steady development of logistics information hardware

‧ Advanced logistics concepts, strong logistics technology application capabilities‧ Plentiful logistics and distribution experience‧ Development of new information technology‧ Steady development of logistics information hardware

Technical aspectsTechnical aspects

‧Opening of Chinese market‧Taiwan shares the same language and script as the potential Chinese market, which gives enterprises an opportunity to grow and a springboard to the international market

‧Opening of Chinese market‧Taiwan shares the same language and script as the potential Chinese market, which gives enterprises an opportunity to grow and a springboard to the international market

Market aspectsMarket aspects

‧A good geographical location, suitable for the development of transshipment logistics‧A tight-knit road network‧Five FTZs‧Integrated airport and seaport transportation‧Establishment of a sound information and communications environment‧Training and certification of specialist personnel

‧A good geographical location, suitable for the development of transshipment logistics‧A tight-knit road network‧Five FTZs‧Integrated airport and seaport transportation‧Establishment of a sound information and communications environment‧Training and certification of specialist personnel

Infrastructure aspectsInfrastructure aspects

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Future Prospects

Encouraging transnational logistics operators to establish bases in TaiwanRecommending that star enterprises set up global operations

headquarters in Taiwan

Improving performanceStandardized, modularized,

automated, computerized processesStrengthening of logistics/information/organizational networks

Adding value to services

Asset services

Value-added servicesIntegrated

supply chain services

Functional services


A. Logistics IndustryA. Logistics Industry

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Current StatusCurrent Status

A major procurement center for global ICT companies Ranked first in worldwide ICT product market share for more than 15 productsDominates IT hardware production value in PRC around 90%Rapid growth of TFT LCD Monitor industry production, and ranked first with production value in worldwide

Land Area: 36,188KM2Population: 22.8 million

(78% resided in metropolitan areas)Household: 7.3 millionPer capita income: US$ 13,619PPP:US$ 24,676PC Penetration (household basis): 74.3%CATV home pass: 84.8%Mobile phone penetration: 87.3%

Source: MIC/III, April 2006

B. ICT IndustryB. ICT Industry

參、產業環境

20

0

20

40

60

80

100US$ Billion

2004 4.7 10.0 16.9 32.9 69.6

2005 5.1 13.3 22.6 34.8 81.0

2006(e) 5.3 18.8 26.4 42.3 88.6

Software and

Service

Communicat

ionsLCD Panel IC

Information

Hardware

Taiwanese ICT Industry Statistics, 2004Taiwanese ICT Industry Statistics, 2004－－20062006

Note 1: The statistics of the Software and Service is the market size.Note 2: Communications production values include Data Network, Mobile Phone and PDA.Note 3: LCD Panel includes Large Size LCD Panel and S/M Size Display Panel.Note 4: Information hardware production values include NB PC, Des NB PC, Desktop PC, Server, Motherboard,

CDT Monitor, LCD Monitor, ODD, DSC and other Emerging Products.Source: MIC/III, IEK/ITRI, January 2007

參、產業環境


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The Taiwanese IT Hardware IndustryThe Taiwanese IT Hardware Industry‘‘s s Production Value, 2001Production Value, 2001－－20112011

Millions USDGrowth %

Source: MIC/III, January 2007

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

-10%

0%

10%

20%

30%

Production Value 42,750 48,435 57,171 69,664 80,980 88,595 101,374 113,251 125,657 136,498 146,464Value YoY GR -9.1% 13.3% 18.0% 21.9% 16.2% 9.4% 14.4% 11.7% 11.0% 8.6% 7.3%

2001 2002 2003 2004 2005 2006 (e) 2007 (f) 2008(f) 2009(f) 2010(f) 2011(f)

參、產業環境


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C. Electronic Materials IndustryC. Electronic Materials Industry

Definition:

Materials used by the semiconductor, flat-panel, and packaging industriesCurrent status:

1. Development conforms to the “reverse integration model”2. Products are mainly imported3. The industry must develop to meet the needs of improving

downstream applications

1. Development and Current Status1. Development and Current Status


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2. Competitive Advantages 2. Competitive Advantages Taiwan’s downstream applications market is expanding rapidly

Taiwan’s downstream applications market is expanding rapidly

Outstanding process control

capability

Outstanding process control

capability

New applications are stimulating development of new materials

New applications are stimulating development of new materials

Ability to reduce costsAbility to

reduce costs

Government policy supportGovernment

policy support

III. Industry EnvironmentC. Electronic Materials IndustryC. Electronic Materials Industry

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3. Future Prospects 3. Future Prospects

High demand for electronic materials used in flat-panel displaysThe electronic materials market is expected to have an overall compound growth rate of 13.5% during the next five yearsFalling manufacturing and transport costs will strengthen the industry’s international competitiveness


C. Electronic Materials IndustryC. Electronic Materials Industry

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D. Technical Services Industry D. Technical Services Industry

1. Development and Current Status1. Development and Current Status

Definition: Includes the R&D services industry, design services industry, information services industry, automation services industry, management and consulting industry, and other technical service industries supporting industrial development.Development and current status:1. Average annual growth rate of 17.8% during most recent 10 years2. Technical service capabilities are concentrated in the hands of large

corporations3. Industry consists mainly of small and medium enterprises


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D. Technical Services IndustryD. Technical Services Industry

2. Competitive Advantages2. Competitive Advantages

Development opportunities in specific areas

A strong manufacturing foundation

Globalization

Familiarity with the Chinese market

Worldwide deployment of Taiwanese companies


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D. Technical Services Industry D. Technical Services Industry

3. Future Prospects 3. Future Prospects

There is tremendous room for growth in business services output

and employment

Demand for external services is increasing steadily

The technical services industry has enjoyed steadily increase in

output value and employment


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1. Asia1. Asia——the Premier Shipping Marketthe Premier Shipping Market

E. Shipping IndustryE. Shipping Industry


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2. Size of Taiwan2. Size of Taiwan’’s Shipping Companiess Shipping Companies

公司名稱總運能（TEU）佔全球比例艘數佔全球比例長榮海運（Evergreen Group） 566,271 6.12% 166 5.05%陽明海運（Yang Ming Line） 253,104 2.74% 82 2.49%萬海航運（Wan Hai Lines） 117,578 1.27% 72 2.19%

台灣航運（China Navigation Co） 34,176 0.37% 34 1.03%合計 971,129 10.50% 354 10.76%

Four of Taiwan’s shipping companies are ranked in the world’s top 30 in terms of shipping capacity, and together account for 10.5% of the world’s shipping

capacity.



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Such wellSuch well--known container shipping companies as known container shipping companies as MaerskMaersk

(ranked 1(ranked 1stst), Evergreen (ranked 4), Evergreen (ranked 4thth), Hanging (ranked 9), Hanging (ranked 9thth), APL ), APL

(ranked 10(ranked 10thth), OOCL (ranked 11), OOCL (ranked 11thth), Yang Ming (ranked 14), Yang Ming (ranked 14thth), ),

Wan Wan HaiHai (ranked 20(ranked 20thth), HMM, and NYK are leasing container ), HMM, and NYK are leasing container

docks at the Port of docks at the Port of KaohsiungKaohsiung. These companies have established . These companies have established

a tighta tight--knit transportation network providing worldwide shipping knit transportation network providing worldwide shipping

services.services.

3. Advantageous Ports3. Advantageous Ports



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FTZ

American Consolidation Service port area warehouse

（automated）

Port zone enterprise

4. Cooperation Strategy for FTZ Shipping and Logistics Companies4. Cooperation Strategy for FTZ Shipping and Logistics Companies

Partnership between American President Lines and American Partnership between American President Lines and American Consolidation ServiceConsolidation Service

Tax bonded areaProcessing zone

Science park

Other FTZs

APL ship ties up at dedicated terminal

Automated checkpoint system

Sea-air forwarding

Dedicated terminalFirst-come-first-served



Privatizedloading and unloading



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Scope: Four Seaports and One Airport

　

IV. Overview of Taiwan’s Ports

TaichungTaichung Port FTZPort FTZ

TaoyuanTaoyuan Air Cargo Park FTZAir Cargo Park FTZ

KaohsiungKaohsiung Port FTZPort FTZ

Taipei Port FTZTaipei Port FTZ KeelungKeelung Port FTZPort FTZ

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KeelungKeelung Port FTZPort FTZ

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Ideally SituatedIdeally Situated

1. Located at the intersection of trans-Pacific and inter-Asia shipping lines, Keelung is a major port for close-by shipping lines and a transhipment port for distant lines.

2. More than 30 shipping companies currently operate close to 100 shipping lines.

3. Links to over 130 ports in more than 40 countries. 4. Nearby northern Taiwan is the country’s political,

economic, and consumer hub, and is also the source of 52% of Taiwan’s cargo.

Keelung Port FTZ

35

Companies Currently Operating in the FTZCompanies Currently Operating in the FTZ

彩躍公司福騰資訊

大優貿易東哲行磐亞實業

Keelung Port FTZ

36

Area Available for Corporate Use, and Suitable IndustriesArea Available for Corporate Use, and Suitable Industries

Area of West Wharfs No. 11-12

1. Areas: 10,000 m22. Annual rent: Approx.

NT$8.90 m 3. Uses: storage, logistics

West Wharf No. 14 Warehouse

1. Area: 2,064 m22. Annual rent: Approx.

NT$4.0 million. 3. Uses: storage, logistics

East Wharf No. 14 Warehouse and Vacant Space


NT$1.44 m 3. Uses: storage, logistics

West Wharfs No. 7-9 Warehouse and Vacant Space


NT$29.0 m 3. Uses: storage, logistics,

container yard

Keelung Port FTZ

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Initial area: 79 ha

Marine area: 2,064 haLand area: 1,038 ha (including offshore logistics warehouse area)

Taipei Port FTZ Taipei Port FTZ

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Development TimetableDevelopment TimetableStage 1: Aug. 2005, 79 ha behind current restricted area.Stage 2: After 2008, the Port of Taipei container terminal will occupy approx. 110 haFuture development: Port plans call for the total eventual development of 1,038 ha of

land area.

Superior ConditionsSuperior Conditions1. Spacious hinterland, adequately deep basin. 2. Close to metropolitan Taipei, with plenty of

cargo sources.3. Close to Taoyuan International Airport;

convenient sea-air forwarding.

Third Bulk and General Cargo Center1. Area: 10 ha 2. Uses: Storage, logistics,loading/unloading & transshipment3. Open for occupancy after 2009

Area available for companiesArea available for companies

Taipei Port FTZ

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Value-added plant area Logistics service areaLiving area

Plant area developed in

Stage 1

Plant area developed in Stage 1

Stage 2 development

areaIndividualized development

area

Individualized development

area

TaoyuanTaoyuan Air Cargo Park FTZAir Cargo Park FTZ

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Air Cargo Park (partially completed)

Firms occupying high-rise plant/office high-rise

buildings inside national borders but outside customs

can engage in processing, manufacturing, assembly, maintenance, packaging,

testing, and trade.

Plans call for business offices, financial services, a conference and exhibition facility, and a five-star business hotel, plus health and recreational facilities and various facilities catering to daily life.

Air cargo terminal(completed)

The Far Glory Air Cargo Terminal located here

can handle a million tons of air freight annually

Warehouse/office building(completed)

Provides offices and cargo management space to

airlines, forwarders, and customs brokers.

Domestic/foreign logistics center (completed) Fresh produce and express goods delivery

and distribution center

Corporate operations center(planned)

FTZ PlanFTZ Plan

MRT station

Taoyuan Air Cargo Park FTZ

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Convenient TransportationConvenient Transportation

Freeways: Only 8 minutes to the Sun Yat-Sen Freeway and 15 minutes to the Second Northern Freeway via the airport access road.West Coast Expressway: Only 15 minutes to the Port of Taipei and 10 minutes to the coastal industrial parks.Taiwan Route 4: Exit at the Nankan Interchange and pass the Tai Mao Shopping Center; 7 minutes to the FTZ entrance.Airport MRT: 40 minutes from the Guolin Station to Taipei Main Station, and 15 minutes to the HSR System's Taoyuan Station.

Taoyuan Airport FTZ


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Bonded area

Lot-by-lot customs

clearance(declaration

form)(waybill)

Monthly statement

(waybill)

Free from review

and inspection

TaoyuanInternational

Airport

Tax zone

Inside national territoryInside national territory, outside customs (Taoyuan FTZ)Outside national territory

30 min.

After arrival of aircraft

Value-adding plants

When exporting, send to area B1before takeoff (1.5 hours)

An access apron leads directlyto the cargo terminal (within 2 hours)

Transfer to warehouse (within 3 hours) Entry to FTZ in 1 hourQuick exit in 3 hours

Speedy Customs ClearanceSpeedy Customs Clearance

10min.


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Assembly, processing

Factory production, manufacturing

Maintenance and technical services

Procurement and offshore shipping centers

Tax-exempt and bonded raw materials, parts, and finished product storage

Conventional industry

High-tech industry

Logistics industry International logistics centers and logistics processing

Third- and fourth-partylogistics

Operating Models Suitable for the FTZOperating Models Suitable for the FTZ


44

DigiLifeDigital consumer electronicsElectronics

Hung Sheng Optoelectronics, Nistem Cosmo, AtanTechnology

Flat-panel displays

OCZ Technology, Corsair Memory, PanramMemory modules

Sumitronics TaiwanWafer dealer

A-Data, Saint Song, ASEC, Powertronics, Prospect Technology, Aurotek

IC, electronics part dealers

Power Quotient, Tecoship, ApacerElectronic devices

Precision ProcessSemiconductor equipment

COP Security, SoftstbMonitoring devices

Solar TechnologyPlastic film salesYeh HsiangAuto partsSunobleshoesSliding Bike, LiyangBicyclesConventional industry

JSI, All Star Link Logistics, Farglory LogisticsLogisticsLogistics

Electric Food Grinders, LarougemusicSmall appliances

Tobacco

Medical devices

Furniture hardware

Hsing Mei, Hsing TienMedical

Lien Ya HsinLiving/department store

E-ElementsHardware & appliance

Companies Occupying the Air Cargo Park(34 Companies)Companies Occupying the Air Cargo Park(34 Companies) Compiled: April 11, 2007


45

Airlines, Customs Brokers, and Forwarding Airlines, Customs Brokers, and Forwarding Companies Occupying the FTZ (45 companies)Companies Occupying the FTZ (45 companies)

Yen Chia, Chieh Meng, Ta HengCustoms brokers/forwarders

Hangar, 2nd floor

Marine Land Air, Jui Sheng, Lian Ti, Leader Mutual, Trans Pacific Express, National Express

Customs brokers/forwarders

Warehouse/office building, 2nd floor

Nippon Express, Marine Land Air, Lien TiCustoms brokers/forwarders

Warehouse/office building,1st floor

32 companies including Uni Airways, Holin, Link Airlift, U-Freight, Panalpina, FEC, Kintetsu, Speedmark, Great Express, Kuehne & Nagel, Hellmann Power, Schenker, Seamax, UPS, DHL, Dart Express, Ever Honest, Geodis, Hecny, Hsieh Chun, United Express, Yung Fu, ShulmanAir Freight, Air International, RAF, and Eagle Global Logistics

Customs brokers/forwarders

Cargo terminal, 4th floor

NCA, Far Eastern Air Transport, Air MacauAirlinesCargo terminal, 3rd floor

Compiled: April 2007


46

Occupancy Application ProceduresOccupancy Application Procedures

Within 2 weeks after formal application

Civil Aeronautics Administration

Taipei Customs OfficeApplication for

operating license

1 dayFarglory LogisticsTransfer of property

Within 3 weeks after formal application

Civil Aeronautics Administration

Taipei Customs Office Application for

preparatory license

Within 7 days after depositFarglory LogisticsContract signing

1 dayFarglory LogisticsDeposit

Handling periodAccepting unitItem


47

1F: NT$439/sq. meters2F~5F: NT$409/sq. meters6F~10F: NT$379/sq. meters

Stage 1 Cargo Park Rental PricesStage 1 Cargo Park Rental Prices

Building height: 10 stories

B1: Cargo handover, storage, and transportation center

B2: Parking facility

Total area per floor: 4,192 sq. meters

Building B Building A

Occupied 37%

Available


TaichungTaichung Port FTZPort FTZ

FTZFuture fill area (approx. 413.6 ha )

Total port area:The port has a total area of approx. 11,285 ha Land area approx. 2,820 ha ( not including future filled areas); 17 special-purpose areas for total 1,504 ha Space for 83 docks

The port has a land area of 2,820 hectares (approximately 1,504 hectares of this is used for 17 special-purpose areas); the entire port area may be included within the FTZ if circumstances warrant.

49

An Optimal LocationAn Optimal Location

Located in central Taiwan; offers lowest land transportation costsA hub of East Asian shipping routes; shortest average sailing time to the Asia-Pacific’s five largest ports in the Asia-Pacific regionShortest distance to ports along the coast of China

Taichung Port FTZ

120Kaohsiung107Keelung87Meizhou

1055Huludao760Qingdao437Macau

1047Yingkou667Ningbo395Hong Kong997Qinghuangdao652Lianyungang240Wenzhou958Dalian643Haikou227Shantou

975Tianjin620Zhanjiang158Fuzhou

900Yantai453Shanghai132Xiamen

DistancePortDistancePortDistancePort

Port Area AdvantagesPort Area Advantages

50

Convenient Transportation and Access to a Large Inland AreaConvenient Transportation and Access to a Large Inland Area

Convenient, extensive land, air, and sea transportation

Offers access to a large inland area consisting of central Taiwan’s eight cities and counties

Proximity to numerous industrial parks, export processing zones, and science parks

TaichungAirport

ChangpinIndustrial Park

Central Taiwan Science Park

Taichung HarborBureau

10

61

10乙

1

11乙

1乙

10

17

17

61

1217

136

Port AdvantagesPort AdvantagesTaichung Port FTZ

51

Superb Port FacilitiesSuperb Port Facilities

46 existing docks of all types (total dock length of 10,974 meters)

42 public and private enterprises have invested NT$33.7 billion in the operation of port facilities.

The port’s shipping channel has been dredged to a depth of 16 meters and widened to 400 meters. The port can now accommodate 4,000-TEU container ships and 125,000-ton capesize bulk carriers.

Port AdvantagesPort AdvantagesTaichung Port FTZ

52

1. Three areas of the FTZ are being developed in two stages. Total area is 536 ha, of which 133.25 ha remain available for business leasing.

2. Future expansion: The entire port area may be incorporated into the FTZ. Short-term plans call for logistics area I (approx. 82.55 ha) to be added to the FTZ first.

Logistics Logistics 區區IIII

專業區專業區II

(Wharfs West 1-7, 77 ha )

(Docks 20A-46, 278 ha )

(Docks 1-18, 181 ha )

Logistics area IILogistics area II

(31 ha )(31 ha )

Logistics area ILogistics area I

(82.55 ha )(82.55 ha )

Stage I, Oct. 31, 2005Stage I, Oct. 31, 2005Stage II, Aug. 8, 2006Stage II, Aug. 8, 2006

Current StatusCurrent StatusTaichung Port FTZ

53

Companies Occupying the FTZCompanies Occupying the FTZ

Trade, logistics, transshipment, transfer, forwarding, customs clearanceTonglin LogisticsTrade, logistics, transshipment, transfer, assembly, reorganization, packaging, repair, processing, exhibition, technical services

Ya Po (H.K.) Co.

Oil storage, transshipment, processingFoodChina

Fuel oil forwardingTaiwan Fuel Oil Co.

Fuel oil trade, storage, logistics, transshipment, transfer, manufacturingYi Chou Co.

Area 3

Storage, port warehouse managementChien Shing Customs BrokerArea 2

Technical servicesTrade-Van Information Services

Auto part & component trade, logistics, transshipment, transfer, assembly, reorganization, packagingSan Wei Co.

Motor vehicle storage, logisticsFu Szu Storage Co.

Trade, storage, logistics, transshipment, transfer, forwarding, assembly, reorganization, packaging, repair, processing, exhibition, port warehouse management (13 items)

Elite International Service System

Container storage, consolidationExpress Container Terminal Corp.

Grain storage, logistics, transshipmentEastern Media International

Area 1

Business servicesFTZ enterprisesArea

Taichung Port FTZ

54

11.97Triangle between Central 2nd Road and North 1stRoad5.18Area of #5B wharf

1.91Area of #12 wharf3.10Area of #5A wharf

1.74Area of #13 wharf0.86Area of #5 wharf

39.99Total

0.90Area of #8 wharf7.90Area of #4C wharf0.86Area of #7 wharf1.51Area of #4B wharf

0.86Area of #6 wharf3.20Area of #2 wharfArea (ha)LocationArea (ha)Location

Area 1

Area 2


2.71Area of #44 & #45 wharf0.87Area of #25 wharf

14.85Area of #36 wharf


82.99Total


11.00Area of #40 wharf2.01Area of #20 wharf14.85Area of #37 wharf1.89Area of #20A wharf

Area (ha)LocationArea (ha)Location

10.27Total

10.27Area of #W6 wharf

Area (ha)

Location

Area 3

Land Available for LeaseLand Available for Lease

Logistics special purpose area Ⅱ

Apron is acontainer

wharf

Petrochemical industry special

purpose area

Taichung Port FTZ

55

A variety of suitable business itemsFTZ enterprises (17 items):

Trade, storage, logistics, container (goods) consolidation, transshipment, transfer, forwarding, customs clearance, assembly, reorganization, packaging, repair, processing, manufacturing, exhibition, and technical services.

Non-FTZ enterprises:Financial, loading/unloading, dining, lodging, conferences, transportation, transshipment, and other approved enterprises.

Occupant Recruiting TermsOccupant Recruiting Terms

1. As vertical or horizontal manufacturing integration demands, or to alleviate insufficient capacity, an FTZ enterprise engaging in processing or manufacturing may apply to outsource processing services from a company outside the FTZ.

2. An FTZ enterprise engaging in logistics may apply to outsource distribution reorganization or simple processing from a company in a bonded area or tax zone outside the FTZ. However, the original state of the goods must still be recognizable after reorganization or simple processing.

3. When processing services outsourced by an FTZ logistics enterprise have a major impact on the national economy, the enterprise may outsource substantially-altering processing services to a company outside the FTZ after the case is approved by the Executive Yuan Free Trade Zone Coordinating Committee.

Enterprises may apply to outsource processing

Taichung Port FTZ

56

Land use fees: Leased area × section price × 5%;

The section price is currently NT$1,400～1,600/㎡

Management fees: By area: Approx. NT$31.72 per square meter per year;

By tonnage: NT$30 per ton

Facility rent (including building rent): The number of years of exemption from rent depends

on the amount of investment; no facility rent must be paid during the exemption period.

Applicable areas: Port facility areas (i.e., areas apart from the logistics

special purpose area Ⅱ and the petrochemical special use area)

“Cooperative development” in accordance with the Commercial Port Act

Land rent: Construction period: Only land tax and other fees must be paid; Operation period: leased area × announced land price × 3％; the announced land price is currently NT$2,300～2,800/㎡;

Or land use fees: leased area × section price × 5%; the section price is currently NT$1,400～1,600/㎡.

Concession fees: By area: Approx. NT$31.72 per square meter per year; By tonnage: NT$30 per tonThe tenant shall retain ownership of surface

structuresApplicable areas: Logistics special purpose area Ⅱ

and petrochemical special use area

“Lease of land” in accordance with the Act for Promotion of Private Participation in Infrastructure Projects or National Property Act

A company wishing to invest in an FTZ enterprise must pay rent (or user fees) and management fees to the Port of Taichung; the calculation of costs depends on the nature of the investment.

Investment Methods and CostsInvestment Methods and Costs

Taichung Port FTZ

57

KaohsiungKaohsiung Port FTZPort FTZ

Container terminal No. 1: 19.01 ha

Container terminal No. 4: 114.52 ha

ChungtaoCommercial Port: 17.72 ha

Container terminal No. 2:

51.23 haContainer terminals

No. 3 and No. 5: 212.93 ha

The total area of the first through fifth container terminals atthe Port of Kaohsiung is 397.69 ha.

58

AdvantagesAdvantages

一港口二港口

Superior port characteristics: 16-meter water depth

A vessel traffic service system

(VTS) insures safe navigation.

2006 container volume was 9.77

million TEU

Goods from Fuzhou and

Xiamen in China

Third areas such as the US and

Europe

Port of Kaohsiung Offshore Shipping Center

provides direct shipping service

Automated checkpoint control

system

Kaohsiung Port FTZ

59

Suitable IndustriesSuitable Industries

Storage Simple processing

International logistics

Transshipment

Current occupant companies (15 companies)Current occupant companies (15 companies)

Trade-Van Information Yes Logistics

Hanjin

Wan Hai Lines Taiwan Jih You

American President Lines (Taiwan)OOCL Logistics

Lien Hai Terminal & StevedoringHyundai Merchant Marine

Cargo Distribution InternationalOOCLKaochun Stevedoring Yang Ming Marine Transport

EMIAmerican Consolidation Service

Kaohsiung Port FTZ

60

Thank You!Thank You!

KeelungKeelung Port FTZPort FTZTel: 02Tel: 02--24202420--62846284--55Fax: 02Fax: 02--242242--95826958260-EE--mail: mail: [email protected][email protected]

Taipei Port FTZTaipei Port FTZTel: 02Tel: 02--24202420--62846284--55Fax: 02Fax: 02--24292429--58265826--0 0 EE--mail: mail: [email protected][email protected]

TaoyuanTaoyuan Air Cargo Park FTZAir Cargo Park FTZTel: 03Tel: 03--383383--34563456Fax: 03Fax: 03--393393--345634560-EE--mail: [email protected]: [email protected]

TaichungTaichung Port FTZPort FTZTel: 04Tel: 04--26642664--23542354Fax: 04Fax: 04--26582658--054705470-EE--mail: tel5961@mailmail: [email protected]

KaohsiungKaohsiung Port FTZPort FTZTel: 07Tel: 07--562562--26082608Fax: 07Fax: 07--521521--490349030-EE--mail: p06092@mailmail: [email protected]

Council for Economic Planning Council for Economic Planning and Development (CEPD), and Development (CEPD), Executive YuanExecutive YuanTel: 02Tel: 02--25082508--79727972Fax: 02Fax: 02--25092509--268326830-

Department of Investment Department of Investment Services (DOIS), MOEAServices (DOIS), MOEATel: 02Tel: 02--238238--9211192111Fax: 02Fax: 02--238238--20497204970-EE--mail: mail: [email protected]@moea.gov.tw

Industrial Development Industrial Development Bureau, MOEABureau, MOEATel: 02Tel: 02--275275--4125541255Fax: 02Fax: 02--27032703--016001600-

Commerce Department, Commerce Department, MOEAMOEATel: 02Tel: 02--23412341--16741674Fax: 02Fax: 02--23412341--439543950-