Material Topic: Indirect Economic Impact

Major Causes

• TIPC manages seven international and two domestic commercial ports, and its ports are located near nine major cities, where the development of port operations is closely related to the development of local communities and cities.

Effects and Impacts

Positive impact:
TIPC needs to make timely adjustments and restructuring in response to the development of international trade and goods. Meanwhile, through the construction of port area, such as the development of waterfront recreation facilities to link up the city's attractions, and improved quality of port services, the corporate strengthens planning of external transport, and introduce enterprises into the port area, so as to create a positive indirect economic impact on the environment and people around the port area (including human rights).

Policy/Strategy

• Adjust the direction of development of each port and empower the port groups to work together for external development.
• Optimize the allocation of various types of terminal operational capacities and utilization capabilities to enhance the efficiency of resource utilization in the port area.
• Increase incentives for consolidating transshipment competency.
• Enhance the content of value-added services and continue to create value-added quantity.
• Strengthen the cooperation among industries to increase the port service orientations.

Preventive or Remedial Measures

• Each construction plan includes project progress review meeting for regular tracking and management, so as to avoid delay in project execution.
• In the event of changes in the domestic and international environment and market and to support government policies and port developmental needs, TIPC will follow the procedures to submit an amendment plan for approval.
• Provide multiple appeals channels, such as company mailbox(Open a new window).

Evaluation Management System

• Perform investment promotion of commercial ports in line with the "Commercial Port Law" and its sub-laws, such as the "Regulations Governing the Investment to Build, or Lease to Operate the Commercial Port Facilities For State-Run or Private Enterprises", and other relevant superior investment promotion laws and regulations.

Performance and Adjustments

• The first phase of 7th Container Terminal of Port of Kaohsiung has started operation in May 2023.
• Before the completion of the National Freeway No.7, TIPC, in collaboration with the Kaohsiung City Government and Maritime Port Bureau, works on the improvement project of 7th Container Terminal Connective Traffic. Kaohsiung City Government has therefore conducted "Siaogang District Nanxing Road Widening and Safety Improvement Project" and "Kaohsiung Port Intercontinental Container Terminals Exclusive Cargo Truck Lane Project". The budget for Exclusive Cargo Truck Lane projects was approved at NTD 1,403 million. In April 2023, MOTC agreed to add NTD 48 million and total amount of budget is NTD 1,651 million. Kaohsiung City Government has divided the project into four bids, and each bid has been awarded and construction has begun. The purpose of the project is to segregate the passenger and truck traffic to divert the traffic lanes and improve traffic safety, optimizing the overall traffic condition around the port area, and enhancing the economic benefits.
• Optimization and refurbishment project of existing warehouses at Kaohsiung Penglai port area (first phase) were completed in February 2023.
• Put Port of Kaohsiung Warehouse No.2 Hostel into operation, as well as complete investment for the second phase of Kaohsiung Port Depot (Warehouse No.4 and 6) and Taichung Port Yacht Terminal 20A and 20B.
• The new construction of public buildings in South Wharf area of Taipei Port has been completed in April 2023.
• In response to demands of green energy-related industries (including LNG, offshore and onshore wind power, photovoltaic power or other renewable energy), land resources were also released in addition to upgrading port facilities and services. The actual point area of leased land was 408.69 hectares as of 2023, which is an increase of 23.09 hectares compared with 2022.

Material Topic: Customer Service Quality

Major Causes

• Emphasize on "client-first" as its core value, concerned about customers' opinions and needs
• Conform to the Personal Data Protection Act and other laws and regulations, as well as implement the core value of "client-first" to establish a sustainable partnership.

Effects and Impacts

Positive impact:
By improving customer relationship management and continuously upgrading the quality of customer service, we can increase customers' trust and loyalty to the company, which will yield a positive impact. 

Policy/Strategy

• Through client visits and regular or occasional seminars on shipping or port business, as well as customer service windows at each branch, we promptly receive clients' needs, which is then followed by customer feedback and control.
• All operations related to customer transactions are handled in accordance with the standard procedures set forth in the "ISMS Information Security Management System" in order to safeguard customer privacy.

Preventive or Remedial Measures

• Periodic seminars with clients to communicate on port-related issues and direction of development.
• A notification and contingency system for information security incidents has been established.
• Appeal channels: Customer service window at all branches, business dedicated personnel.

Evaluation Management System

• Track and manage customer feedback and address it appropriately.
• Implement a customer feedback control mechanism and secure customer information without any leakage, theft or loss of customer information.
• All branches organize regular business seminars to collect information on "customers' health and safety" and review the information regularly.
• Formulate annual "Port Area Occupational Safety and Health Week Activity Plan" and submit to Occupational Safety and Health Week website. From mid-April to November, preventive and control measures are taken to improve safety and health facilities, health environment, and management functions of workplaces through "education and training", "promotion and counseling" and "auditing" in order to safeguard their workplace safety and health. The results of the annual implementation will be reported to the OSHA by the end of November for review and approval, and a certificate of participation will be issued.

Performance and Adjustments

• Conducted 10 sessions of port business seminars, of which 39 issues on customers' safety and health have been responded.
• No major customer complaints
• End of "Port Area Occupational Safety and Health Week Activity Plan"
• There was no incident of information leakage, theft, or loss of customer information in any of the issues gathered at the port business forums in 2023.

Material Topic: Business Mode Optimization and Innovation

Major Causes

• The operations of Taiwan international commercial ports are mainly conducted in the mode of landlord ports. Though TIPC has been actively planning for transformation since its establishment in 2012, in the face of the ever-changing market, it is still necessary to adopt a more flexible operation mode, so as to ensure sustainable operation and avoid risk of marginalization in the long run.
• In response to the green energy development program promoted by the Executive Yuan, the corporate, as a state-owned enterprise, is in line with the policies of energy transformation and is using its ports as an operating base for offshore wind power and gas power generation, increasing the proportion of gas, wind and solar power generation.
• In the face of competition in the global maritime transportation market, in order to meet the current demand of international transportation, and in response to the development of emerging technologies such as information and communication, big data, IoT and artificial intelligence, TIPC, as the coordinator and manager of seven major international commercial ports, is tasked with the mission of enhancing the competitiveness of the ports, and will continue to promote the development of smart ports by combining the applications of emerging technologies with port operations.
• Active revitalization of the company's vacant properties to increase income from asset utilization.

Effects and Impacts

Positive impact:
Through continuous optimization of the business mode and innovative improvement initiatives, digital technology is introduced to transform into smart ports, supporting the government's green energy development to move into new forms of business and maximize the efficiency of resources use in the port area, so as to enhance the competitiveness of the ports, which then brings positive impacts to the company.

Policy/Strategy

• Adjust the direction of development of each port and empower the port groups to work together for external development.
• Optimize the allocation of various types of terminal operational capacities and utilization capabilities to enhance the efficiency of resource utilization in the port area.
• Increasing incentives for consolidating transshipment competency.
• Enhance the content of value-added services and continue to create value-added quantity.
• Strengthen the cooperation among industries to increase the port service orientations.
• Optimize the management of people and vehicles accessing the commercial port control area, formulate the "Guidelines for the Application and Use of International Commercial Port Permit", and fully apply for and issue permits electronically, so as to effectively safeguard the security of the port area.
• In order to continue to promote smart port development, three major development strategies have been formulated, focusing on the "deployment of smart infrastructures in Taiwan ports", "integration and analysis of value-added operational data", and "application of innovative technologies in experimental fields", so as to complement the intelligent facilities and promote the implementation of various emerging technology technologies at each port.
• In light of the usage and development conditions of every land, the corporate actively explores potential business partners, plans investment promotion that meets market demand, and conducts investment promotion in accordance with the "Regulations Governing the Investment to Build, or Lease and Operate the Land Outside Commercial Port and Facilities For State-Run or Private Enterprises". 

Preventive or Remedial Measures

• Every construction project is regularly tracked at progress review meetings to avoid delay in execution rate. In the event of changes in domestic and international environment and market, and in line with government policies and port development needs, the company will follow the procedures to revise the plan for approval.
• TIPC has established a dedicated unit to manage the progression of every smart port project, and held meeting regularly to ensure the progression and direction of project successful. Seven meetings of smart port promotion group have been held.
• Timely review of the investment strategies and adoption of a diversified investment model, ongoing negotiations with potential investors, and short-term leasing prior to development.
• Provide multiple appeal channels, such as company mailbox(Open a new window).

Evaluation Management System

• Regularly report to MOTC on their work and administrative performances. MOTC evaluates the budget for the upcoming year and the feasibility of business plan based on the annual financial statement, and dynamically adjusts the objectives or execution plan of each project if necessary, which will be implemented after approval by the Executive Yuan.
• The evaluation management system for important smart port projects includes KPI assessment and project discussion at the smart port promotion group meeting.
• Daily review of the percentage of anomalies in the records of each port area is conducted to keep track of the usage of permits.
• The "Automatic Gate Sentry post Control System" will crosscheck with lists of stolen vehicles and fugitives through API connections with database in National Police Agency. The system will automatically revoke the pass once the above circumstance occurs in addition to on-site display and SMS notification.
• Regularly conduct inspections on real estate utilization of land and buildings, track the progress of asset revitalization, and constantly discuss investment intentions with potential business partners, as well as proceed with short-term rentals for revitalization and utilization before development.

Performance and Adjustments

• The total cumulative capacity of solar power generation in Taiwan port cluster is about 90,917 kWh, with a total generation capacity of about 104.53 million kWh and a carbon reduction of about 51,743 metric tons.
• The actual point-of-sale area of green energy-related properties (including LNG, offshore and onshore wind power, photovoltaic or other renewable energy sources) for lease was 408.69 hectares, an increase of 23.09 hectares from 2022.
• Since mid-2017, there were 93 idle real estate properties reported to the "Land Clearance and Revitalization Promotion Group of State-Owned Utilities under Ministry of Transportation and Communications (MOTC)". As of the end of December 2023, 8 real estate properties have been revitalized, with a total area of 21,895.2m².
• Upgrade "Marine Metrological Information System of Taiwan International Ports" monitors real-time meteorological data and integrate warning notifications to enhance the safety of vessel navigation.
• Complete "E-Lane and Automatic Gate Sentry post Control System" using AI image recognition technology to manage the entrance of people and vehicles, the port area management, and digitalization of entrance records
• Extend the coverage of "Port 168 - Port Area Real-Time Information Service Network" to the 7th Container Terminal of Kaohsiung Port to effectively enhance the transportation efficiency.
• Complete the upgrade of "Asset Geographic Information System" to include 6400 hectares of land and buildings in port area, and visually manage the information of leasehold.
• Complete "Business Intelligence Platform" to assist decision-making in port operation management with visualized charts and tables.
• Develop the pilot version of "Smart Energy Management System" for Taiwan ports to be in line with the national net zero carbon emission policy by monitoring the energy efficiency of water and electricity in the port area on a full-time basis, along with future installation of energy storage and creation equipment for the purpose of peak shaving.

Material Topic: Safety Management of Port Operations

Major Causes

• TIPC is in charge of various port constructions and measures, which are important drivers of the national economy. Therefore, the safety management of port operations is of great importance. Any hazardous or terrorist attack-related incident at commercial port could have a significant impact on the operation of commercial ports, including harm to human life, disruption of normal port operations, financial loss, and propagation of international threats.

Effects and Impacts

Negative impact:

• Political assessment: Impacts on commercial ports may have political implications, affecting international shipping and cargo trading.
• Symbolic assessment: As port facilities support special (e.g., weapons, military fuel, industrial equipment) or controversial (e.g., natural resources, etc.) cargo transportation, it affects the symbolism and representativeness of the Taiwan commercial ports.
• Economic assessment:
  • Important equipment (e.g., pipelines, offshore equipment) or products (gold, silver, silicate, etc.) may be affected because commercial ports are important sources of industrial manufacturing and energy.
  • Impacts on special port facilities and operations, such as special cargo and operations, could result in significant losses to port operations and economy.
• Social assessment: Fear and media attention due to damage to port or industrial facilities, passenger safety incidents such as explosions, building collisions, and the aftermath of ammonia release (mass loss of passenger lives, release of radiation, etc.).

Policy/Strategy

• As a response to the increasing trend of terrorist incidents worldwide, the International Maritime Organization (IMO) and contracting parties under the International Convention for the Safety of Life at Sea (SOLAS) held a diplomatic conference on maritime security in London, and adopted amendments to Chapter XI-2 of SOLAS and the International Ship and Port facility Security (ISPS) Code. These new requirements form an international framework for cooperation between ships and port facilities to detect and deter acts that jeopardize shipping security. In order to boost the competitiveness of commercial ports, TIPC has formulated the "Port Facility Evaluation Report" and "Port Facility Security Plan", which are in line with the amendments to SOLAS Chapter XI-2 and the ISPS Code established by the IMO.
• Pursuant to Article 42 of the Commercial Port Law, TIPC conducts security assessment of international commercial ports and prepares assessment reports and plans for approval by Maritime Port Bureau of MOTC for implementation. Pursuant to Article 43 of the Commercial Port Law, TIPC cooperates with Maritime Port Bureau in the inspection and testing of port facility security measures and security operations of various public and private organizations operating in the international commercial port area, and seeks for improvement according to the results of inspections.

Preventive or Remedial Measures

• Pursuant to Article 43 of the Commercial Port Law, TIPC cooperates with Maritime Port Bureau in the inspection and testing of port facility security measures and security operations of various public and private organizations operating in the international commercial port area. If deficiencies are identified, the organization is required to make improvements and incorporate them into "Port Facility Evaluation Report" and "Port Facility Security Plan" for revision.
• Review the contents of "Port Facility Security Plan" by conducting regular security drills and exercises at each port facility, and incorporate "Port Facility Evaluation Report" and "Port Facility Security Plan" revisions through meeting of Port Facility Security Committee in a timely manner to address outdated and improved practices.

Evaluation Management System

• Statutory control
  • In accordance with the "Management Review Procedures", we periodically review the status and conformity of changes in regulations and other requirements at meetings of the Management Review Committee or Occupational Safety and Health Committee.
  • All operations related to regulations and other requirements shall be documented and handled in accordance with the "Documentation and Record Management Procedures".
• Organizer of Occupational Safety and Health Committee reports the progress of each goal on a quarterly basis for consideration by committee members.
• In accordance with Article 43 of Commercial Port Law, TIPC cooperates Maritime Port Bureau of MOTC in the inspection and testing of port facility security measures and security operations of various public and private companies operating in the international commercial port area, and makes improvements in response to the deficiencies identified in the inspection results. The corporate also cooperates with the ISPS Code in the issuance of "Statement of Compliance of a Port Facility" every five years, and conducts the annual inspection from April to August every year in order to declare conformity of port facilities.

Performance and Adjustments

• Actual number of sessions in year 2023:
  • Large scale promotional activities (senior management promotional activities) 5 times with 2,050 participants.
  • Disaster mitigation and health promotion activities 577 events with 3,973 participants.
  • The number of participants in the 50 educational and promotional activities was 1,523.
  • The above participants consist of employees, contractors, and port operators (stevedores).
• Strengthen the safety of dock handling operations in port areas. Implementation status of "Guidelines for Safety and Health Management at Guided Ports" in all ports: 
  The headquarter visits each branch on a quarterly basis, for a total of 16 visits throughout the year. Each branch organizes one seminar biannually, for a total of eight seminars throughout the year, and regularly (once every six months) collaborates with Maritime Port Bureau to conduct joint inspections on cargo handling operations at international commercial ports, with the participation of local labor inspection authorities, harbor police department, and the company.
• Conducted two VTSO trainings and attended one VTSO training session each for every friendship port.
• Implement and supervise the conduct of security drills and exercises at all port facilities, with each port organizing one session every quarter by principle, resulting in a total of at least 36 sessions per year in the port group.