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2008 March 26   08:01

Taiwan ending ban on direct shipping to China

In a move which would end a five-decade ban on direct shipping with China, Taiwan's President-elect Ma Ying-Jeou has confirmed Taiwan's seven main ports for “direct transport links” with Chinese ports.
The ports are Keelung, Taipei harbour in Taipei County, Taichung, Pudai harbour in Chiayi County, Anping harbour in Tainan County, Kaohsiung and Hualien.
The China Post says that six of those ports are ready to commence the new direct services to China.
Ma's Kuomintang party swept to power last week over President Chen Shui Bian's pro-independence DPP.
Ma had promised to “drastically liberalize current restrictions on economic interchange with China as a means of helping reinvigorate Taiwan's economy.”
Analysts have been expecting such measures as part of Kuomintang's commitment to moderation and the economy, and a defusing of cross-strait tension.
Authorities of all the seven ports, except those at Pudai harbour, have indicated completion of preparation for the new services.
According to the China Post, several of them claim to have begun preparing as early as 2000 when President Chen announced new policies to launch direct shipping with China.
Eight years have however gone by since the proclamation with not a single direct shipping service being launched.
Pudai harbour, currently the only port still not ready for direct shipping, was already designated close to a decade ago as a Taiwanese port suitable for such services due to it having the shortest distance to China's port of Xiamen in Fujian province.
The China Post reported that “service conditions at the harbor continued to deteriorate as Chen's DPP administration withheld plans to liberalize the policies toward China.”
Pudai authorities have however come out to say that the harbour “can be quickly ready for the new tasks after completing new dredging operations to accommodate larger ships and install facilities handling immigration services.”
Meanwhile, Taiwan's busiest port, Kaohsiung, was the world's third largest container port in 1999, but it had dropped to sixth place by 2005.
This fall had been precipitated by the rapid expansion of neighboring ports and Taiwan's five-decade ban on direct shipping with China.
Major shipping lines have been canceling calls at Kaohsiung, preferring to reach Chinese ports directly and employ feeder services to transship containers from Kaohsiung.
Late last year, Kaohsiung awarded Yangming Marine Corps a 50-year concessional contract to build and run a new 16-metre (draft) deep-water container terminal. The current depth of Kaohsiung's container terminals is 14.5 metres.
The port was inviting international tenders to build the new terminal in a concerted effort to revive its past success.
In a clear indication of the port's flagging appeal and competitiveness, Yangming was the only firm to submit a bid.
The new facilities are scheduled to handle at least two million twenty-foot equivalent units (TEUs) per year.
Kaohsiung Harbor officials decided on the new terminal because current facilities, five container terminals and a total of 23 wharves, are scheduled to reach designed full capacity – 10 million TEUs – by this year.
Industry players however, are less than optimistic about the port's future, with several sources pointing out how shipping lines have 'lost their confidence'.

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