Maersk to halve its operation at Kaohsiung Harbor
A.P. Moller-Maersk Group, the worlds largest container shipping group, has decided not to continue the lease of two docks after the expiration of the contract at the end of October, a move expected to deal a major blow to the harbors operation.
After the discontinuation of the two docks, No. 118 and 119, Maersk will be left with only two docks, No. 76 and 77, at the harbor, a move expected to halve the companys container-shipment volume at the port, which topped 1.1 million TEUs (twenty-feet equivalent units) in 2007, more than 10% of the ports total container handling volume of 10 million TEUs.
To alleviate the impact, Tsai Ting-yi, director general of Kaohsiung harbor bureau, reported yesterday (July 8) that the bureau has proposed to Maersk leasing dock No. 75 to substitute for docks No. 118 and 119, as the former dock can connect to docks No. 76 and 78, forming a continuous operating zone, which can streamline its operation and help cut operating cost.
Meanwhile, the harbor bureau will suggest the Korean shipping firm now occupying dock No. 75 to move to dock No. 118 or 119, to be vacated by Maersk.
Maersks decision to discontinue the lease of the two docks materialized a lingering concern of Kaohsiung harbor bureau officials, following the completion of three container docks at Xiamen harbor at the end of 2007, which were built by the Xiamen harbor bureau and Maersk jointly.
Maersks move may drive downward Kaohsiungs global ranking for container handling volume, which reached eighth place in 2007.
After the discontinuation of the two docks, No. 118 and 119, Maersk will be left with only two docks, No. 76 and 77, at the harbor, a move expected to halve the companys container-shipment volume at the port, which topped 1.1 million TEUs (twenty-feet equivalent units) in 2007, more than 10% of the ports total container handling volume of 10 million TEUs.
To alleviate the impact, Tsai Ting-yi, director general of Kaohsiung harbor bureau, reported yesterday (July 8) that the bureau has proposed to Maersk leasing dock No. 75 to substitute for docks No. 118 and 119, as the former dock can connect to docks No. 76 and 78, forming a continuous operating zone, which can streamline its operation and help cut operating cost.
Meanwhile, the harbor bureau will suggest the Korean shipping firm now occupying dock No. 75 to move to dock No. 118 or 119, to be vacated by Maersk.
Maersks decision to discontinue the lease of the two docks materialized a lingering concern of Kaohsiung harbor bureau officials, following the completion of three container docks at Xiamen harbor at the end of 2007, which were built by the Xiamen harbor bureau and Maersk jointly.
Maersks move may drive downward Kaohsiungs global ranking for container handling volume, which reached eighth place in 2007.