Maersk Line will next month optimise its container operations at Kaohsiung in a move that will effectively mean a 20 percent cutback in the line's annual capacity at the southern Taiwan port. Correspondent Huang Seeda reports
Maersk Line, the world's largest container shipping company, confirmed that it would cut its capacity at Kaohsiung port in Taiwan by about 20 percent next month, denying earlier media reports that it would cut its capacity by half.
Peter Nicolaj Hansen, managing director of Maersk Taiwan, explained: "Maersk is optimising its set-up in Kaohsiung port where its berths 118-119 will be switched for berth 75, which is adjacent to the other terminal Maersk Line uses (berths 76 and 77), to give us contiguous berths, enhancing our efficiencies."
South Korea's Hyundai, which currently operates berth 75, is expected to take over Maersk's berths 118 and 119.
The berth change - which has become possible with the support of the Kaohsiung Harbour Bureau - will allow Maersk to use the terminal assets in the port of Kaohsiung in a more efficient way, Hansen said.
"The move supports Kaohsiung's position in Maersk Line's global service network. Maersk Line is happy with the efficiencies shown in Kaohsiung, and is committed to continue serving Taiwan and Kaohsiung as we have done for many years," he added.
Maerk's berths 118 and 119, to be surrendered when their leases expire in October, have a combined capacity of 900,000 TEUs a year, while berth 75 can move more than 500,000 TEUs if it works alongside Maersk's berths 76 and 77, which can handle one million TEUs a year.
That would effectively mean Maersk will cut its total 1.9 million TEU capacity in Taiwan by 400,000 TEUs per annum, representing a cutback of about 20 percent.
Last year, Maersk shipped about 1.36 million containers, 18 percent of Kaohsiung's total throughput, according to the Kaohsiung Harbour Bureau. The bureau's deputy director-general Huang Kuoying said that Maersk's volumes had fallen in the past 12 months after the company moved more vessels to Xiamen port, across the Taiwan Strait.
"Since the company's parent also has terminal investments in Xiamen, its demand here is not as big as before," he added.
Maersk, which is the second biggest shipping line at Kaohsiung after Evergreen Marine Corp, declined to comment on its Taiwan throughput as well as the Xiamen factor.
However, Greater China Transport analyst C K Wong said it was obvious that Maersk's decision to cut capacity in Taiwan was due to the declining importance of Kaohsiung's position as one of Asia's top ports, Maersk's sister company's investment in the Xiamen container terminal, a slowing economy and soaring fuel prices.
In September 2007, APM Terminals, a subsidiary of A P Moller-Maersk, started operations at the Songyu Terminal in Xiamen, which can handle the world's mega container vessels.
The terminal has been jointly developed by APM Terminals and the Xiamen Port Group with each having a 50 percent stake. The two invested some US$380 million in the terminal's first phase.
Kaohsiung port's growth in the first half of this year dropped three percent to 10.26 million TEUs compared with the same period last year, the Kaohsiung Harbour Bureau said. The port's container throughput has been sliding for three consecutive months since February and it dropped to 831,800 TEUs in April.
During the first four months, the port's container throughput was flat at 3.29 million TEUs compared with the same period last year. Cargo tonnage totalled 150 million tonnes, including 120 million tonnes of container cargo, representing 77 percent of the total cargo volume.
Except for a rise of 2.22 percent in January, Kaohsiung port's throughput fell 0.52 percentage points in February, 0.91 percentage point in March and 1.06 percent in April compared to the previous year. That could see the port fall out of the ranking of the world's 10 busiest container ports. Kaohsiung slid two places to No. 8 in 2007, surpassed by Rotterdam and Dubai.
However, plans by Taiwan and China to hold talks next month to sign a pact on launching direct shipping across the Taiwan Strait could make a difference for Kaohsiung in the near future, analyst Wong said.
The plan calls for cross-strait direct sea links between Taiwan and the Fujian Province ports of Xiamen and Fuzhou. The Taiwanese ports to benefit from the links will be Keelung, Taipei, Taichung, Kaohsiung, Hualien, Putai of Chiayi, and Anping of Tainan. Kaohsiung Port is expecting rapid growth after direct links are established with China.
Maersk has ordered 16 ships for delivery in 2010-2012 in addition to 18 new ships ordered in June for 2011-2012 delivery, as it expects strong container growth between the east coast of South America, Asia and Europe.
Maersk Line, the world's largest container shipping company, confirmed that it would cut its capacity at Kaohsiung port in Taiwan by about 20 percent next month, denying earlier media reports that it would cut its capacity by half.
Peter Nicolaj Hansen, managing director of Maersk Taiwan, explained: "Maersk is optimising its set-up in Kaohsiung port where its berths 118-119 will be switched for berth 75, which is adjacent to the other terminal Maersk Line uses (berths 76 and 77), to give us contiguous berths, enhancing our efficiencies."
South Korea's Hyundai, which currently operates berth 75, is expected to take over Maersk's berths 118 and 119.
The berth change - which has become possible with the support of the Kaohsiung Harbour Bureau - will allow Maersk to use the terminal assets in the port of Kaohsiung in a more efficient way, Hansen said.
"The move supports Kaohsiung's position in Maersk Line's global service network. Maersk Line is happy with the efficiencies shown in Kaohsiung, and is committed to continue serving Taiwan and Kaohsiung as we have done for many years," he added.
Maerk's berths 118 and 119, to be surrendered when their leases expire in October, have a combined capacity of 900,000 TEUs a year, while berth 75 can move more than 500,000 TEUs if it works alongside Maersk's berths 76 and 77, which can handle one million TEUs a year.
That would effectively mean Maersk will cut its total 1.9 million TEU capacity in Taiwan by 400,000 TEUs per annum, representing a cutback of about 20 percent.
Last year, Maersk shipped about 1.36 million containers, 18 percent of Kaohsiung's total throughput, according to the Kaohsiung Harbour Bureau. The bureau's deputy director-general Huang Kuoying said that Maersk's volumes had fallen in the past 12 months after the company moved more vessels to Xiamen port, across the Taiwan Strait.
"Since the company's parent also has terminal investments in Xiamen, its demand here is not as big as before," he added.
Maersk, which is the second biggest shipping line at Kaohsiung after Evergreen Marine Corp, declined to comment on its Taiwan throughput as well as the Xiamen factor.
However, Greater China Transport analyst C K Wong said it was obvious that Maersk's decision to cut capacity in Taiwan was due to the declining importance of Kaohsiung's position as one of Asia's top ports, Maersk's sister company's investment in the Xiamen container terminal, a slowing economy and soaring fuel prices.
In September 2007, APM Terminals, a subsidiary of A P Moller-Maersk, started operations at the Songyu Terminal in Xiamen, which can handle the world's mega container vessels.
The terminal has been jointly developed by APM Terminals and the Xiamen Port Group with each having a 50 percent stake. The two invested some US$380 million in the terminal's first phase.
Kaohsiung port's growth in the first half of this year dropped three percent to 10.26 million TEUs compared with the same period last year, the Kaohsiung Harbour Bureau said. The port's container throughput has been sliding for three consecutive months since February and it dropped to 831,800 TEUs in April.
During the first four months, the port's container throughput was flat at 3.29 million TEUs compared with the same period last year. Cargo tonnage totalled 150 million tonnes, including 120 million tonnes of container cargo, representing 77 percent of the total cargo volume.
Except for a rise of 2.22 percent in January, Kaohsiung port's throughput fell 0.52 percentage points in February, 0.91 percentage point in March and 1.06 percent in April compared to the previous year. That could see the port fall out of the ranking of the world's 10 busiest container ports. Kaohsiung slid two places to No. 8 in 2007, surpassed by Rotterdam and Dubai.
However, plans by Taiwan and China to hold talks next month to sign a pact on launching direct shipping across the Taiwan Strait could make a difference for Kaohsiung in the near future, analyst Wong said.
The plan calls for cross-strait direct sea links between Taiwan and the Fujian Province ports of Xiamen and Fuzhou. The Taiwanese ports to benefit from the links will be Keelung, Taipei, Taichung, Kaohsiung, Hualien, Putai of Chiayi, and Anping of Tainan. Kaohsiung Port is expecting rapid growth after direct links are established with China.
Maersk has ordered 16 ships for delivery in 2010-2012 in addition to 18 new ships ordered in June for 2011-2012 delivery, as it expects strong container growth between the east coast of South America, Asia and Europe.