Amidst the impact of the global political and economic turmoil and weak demand in 2023 due to inflation, industrial inventory adjustments, China's economy slowdown, the U.S.-China technological conflict, as well as the Russo-Ukrainian and Israeli-Palestinian wars, etc., while the cargo and container handling volumes of the Taiwan port group amounted to 666 million metric tons and 13.6 million TEUs, they still represent a decrease of 7.3% and 7.4% respectively compared to 2022. However, the corporate’s total revenue reached NT$28.18 billion, an increase of 1.08% compared to 2022 under its diversified business strategy.
In the face of global economic and trade impacts and competition from neighboring ports, it is imperative for TIPC to continue improving port construction and operational efficiency in order to capture opportunities when the economy turns around. The description of the corporate’s efforts to enhance port construction in 2023 is set forth below.
Competitiveness Analysis of Future Re-export Development at Taiwan Ports
Cargo
Project of 7th Container Terminal of Port of Kaohsiung
- 1. The five berths of Terminal 7 are inaugurated in two phases. Berth S5 to S3B and part of the hinterland for the first phase were completed in April 2023 and delivered to Evergreen Marine Corporation in May of the same year for official commissioning while second phase of the project, Berth S3A to S1 and the backline site, are scheduled to commence operation on July 1, 2024. After fully operated next year, it is expected to increase operation capacity up to 6.5 million TEU per year, which will help to consolidate the position of the Port of Kaohsiung as a global maritime hub, and to further promote the economic development of the South Taiwan industry, making it the forerunner of smart terminals in the shipping industry.
- 2. The 7th Container Terminal is equipped with five container terminals with a water depth of 18 meters and container yard of 149 hectares, with a 2,415-meter long quay, which can provide berthing and stevedoring for four 24,000 TEU ultra-large container ships. Meanwhile, it is equipped with the country's first 25-row remote-controlled unmanned bridge crane, fully-automated portal crane and intelligent customs clearance lanes for container trucks. It also introduces an independent 5G system, fiber optics, and Internet of Things (IoT) to cover the entire site, along with Evergreen Marine Corporation intelligent terminal operating system (EMCTOS), optical character recognition (OCR), and real-time power monitoring system to make Kaohsiung Port 7th Container Terminal one of the world's most intelligent and automated container centers.
Bulk Goods
Port of Taichung Port Pier 42 New Construction
In line with Port of Taichung 's bulk cargo zoning management plan, the number of seats at the bulk cargo terminal in the downwind area will be increased, and upon completion of the construction, an additional bulk cargo terminal will be added to enhance loading and unloading efficiency and port services. The project started in January 2020 and was completed in March 2023.
Logistics Warehouse
The terminal construction and land reclamation project of landfill B at the Southern Pier of Taipei Port
To cater for the demand for handling raw materials and finished products from resident manufacturers in Southern Pier, a temporary embankment of about 360m was constructed at the pier and its east side for the purpose of enclosing the landfill. Besides, about 13 hectares of land along the backline of Terminal S09 was reclaimed to provide land for the construction of storage and warehousing facilities.
Phase II land reclamation project for logistics and warehouse zone of Taipei Port
The first phase of land construction has been completed, and negotiations for land exchange and the acquisition of surplus soil and rock (Type B1-B6) from public constructions are finished ahead of schedule in December 2023, making it available for use as a logistics and warehousing area.
Phase 3 & 4 seawall construction project at logistics and warehouse zone of Taipei Port
Along with promotion of the temporary oil storage center relocation plan, the oil storage center is planned to be relocated to the fourth phase of the development area, and therefore it is necessary to prioritize the third and fourth phase of the embankment project, in order to expedite the fourth phase of the land reclamation project.
Public facilities project at logistics and warehouse zone of Taipei Port
Phase I of the logistics and warehousing zone has been completed with fundamental infrastructures, and Phase II has been completed with the construction of land in Zone 2-1. In order to accommodate the needs for subsequent development, the establishment of necessary facilities in Zone 2-1 will be coordinated.
Energy Development
Taipei Port South Pier Construction and Landfill B Landfill Construction Project
In line with the government's energy policy, the S09 pier and S07-09 backline construction will be built to create an offshore wind power submarine infrastructure manufacturing base. The entire project was constructed in phases, with the S09 pier and backline embankment construction completed in 2021 and the S07 and S08 shore protection and backline embankment construction completed by the end of August 2022.
Port of Kaohsiung Offshore Wind Power Associated Industry Related Projects
The Port of Kaohsiung Intercontinental Container Terminal A6 berth will be used by the wind power industry for the construction, assembly and storage of offshore wind power infrastructure, and is expected to be completed by the end of 2024.
Anping Port offshore wind power related projects
- The new heavy duty terminal and backline storage site along the shoreline of Anping Port Pier 11 have been used for wind power operators to construct and assemble offshore wind power infrastructures and for storage and transportation. The project was completed in December 2023 and officially delivered to the lessee in January 2024 for use.
Taichung Port Outer Harbor Expansion Project (Phase I)
Considering the demand for land for offshore wind power industry and the need to remove a large amount of earth from long-term dredging in the port area, this project proposes to accelerate the development of outer harbor reclamation area of Taichung Port.
Others
Taichung Port bridge and terminal facilities improvement project
Zhongnan 2nd Bridge is located at the junction of river and sea and is susceptible to seawater droplet erosion. The inspection result in 2019 was U3 grade., which resulted in immediate initiation of maintenance and improvement project. The project started on January 29, 2021 and was completed on December 6, 2022. Besides, to tie in with EcoPort in promoting the installation of additional shore power and water supply systems at the old terminals, TIPC refurbished Pier #8A, which commenced on June 10, 2022 and was completed on January 5, 2024
Kaohsiung Penglai Port area existing warehouse optimization and infrastructure improvement project
Corresponding to the development of existing port area of Kaohsiung Port, the corporate has undertaken the renovation and optimization of the roofs of warehouses in Penglai Port, with first phase completed in February 2023, and the second phase is currently under construction. The corporate is also engaged in the improvement of infrastructures at Penglai Port, including telecommunication and electricity, centralized monitoring and control systems, water and sewage pipelines, road paving, and marking of roads and lanes, with preliminary construction completed in January 2022, and improvement works expected to be completed by 2024. Based on the overall public facilities at Penglai Commercial Port of Kaohsiung Port, the project integrates intelligent development and installation of five major pipelines to improve the surrounding landscape to provide recreational service and to effectively enhance the open space and pedestrian-friendly environment in the port area.
Taipei Port South Pier Public Facilities and Permanent Revetment Construction Project
The South Pier area of Taipei Port is designed as a multi-functional, multi-purpose development area that will be reclaimed in phases. In order to attract private investment in the establishment of factories and develop the area into an Intelligent Vehicle Industrial Park, the corporate conducts relevant public facilities and revetment construction projects.
Keelung Port Land Reclamation Project
West terminals 28A and 28B of Keelung Port have been reorganized as harbor service piers, for which reclamation of the dock at west terminal 28A and related site construction work have been carried out, in order to meet the needs of future port operations.
Keelung Port Terminal Reconstruction Project
Considering that the three terminals E4, W33 and W33B of Keelung Port have been established for more than 50 years, it is necessary to carry out reconstruction work to meet the needs of future operations.
Taipei Port Public Facilities Project
In order to attract private enterprises to move in and to provide land for factory construction, necessary public facilities are provided.
Angel Container Ship Contingency Response
On July 20, 2023, the Palau-flagged container ship named “ANGEL” capsized and sank in the second anchorage area of Kaohsiung Port, causing a large number of containers to drift into the sea, as well as the oil spills, etc. So far, the shipowner and Protection and Indemnity (P&I) have not taken any appropriate action to deal with related issues. The port company has set up an emergency response center, which has lasted 65 days and conducted 35 contingency meetings. MOTC Deputy Minister Chi Wen-jong has visited the emergency response center, and together with the company's Executive Vice President Wang Chinjung, invited Maritime Port Bureau, Ocean Conservation Administration of Ocean Affairs Council, Coast Guard Administration, Fisheries Agency of Ministry of Agriculture, Marine Bureau of Kaohsiung City Government, Tainan City Government, Pingtung County Government, S5 Asia Limited Taiwan branch, and Seagreen Enterprise to convene a contingency meeting with relevant units. Disposal of drifting containers, cleaning of oil spill on the sea surface and removal of residual oil from the hull were finally completed.
Despite being affected by four typhoons, namely Doksuri, Khanun, Saola and Haikui, TIPC worked with Marine & Offshore Engineering Taiwan Co., Ltd. and other related units to adjust the pumping sequence of the oil tanks, and to mobilize more divers to work around the clock in order to finish the pumping of one oil tank in two days, which resulted in engagement of 307 vessels and more than 1,327 manpower (including divers and deck crews) in total to complete the extraction of 470 metric tons of residual oil from 14 vessel tanks on September 21, ahead of schedule. On September 22, 2023, Marine & Offshore Engineering Taiwan Co., Ltd. deployed a diving team to carry out a full inspection of the vessel and confirmed that all the oil containers were free of oil residue, and completed the reinforcement and sealing of oil seepage points.
In accordance with the instructions from the Deputy Minister of MOTC, Chi Wen-jung, TIPC continued to deploy drones to conduct daily inspections of waters around the shipwreck, sent decontamination vessels as standby guards around the ship, and continued to observe the conditions of the intershore hotspots such as Kezailiao Fishing Port, Cihou Lighthouse, and Fengbitou Fishing Port, etc., so as to protect the marine environment and ecology. The case will be referred to the Maritime Port Bureau MOTC to handle the legal issues and subsequent litigation procedures with the attorneys in relation to costs related to the fishermen's damages and expenses incurred as a result of the incident, as well as the the company’s assistance in salvaging containers, removing residual oil and dealing with losses.
Consolidation of Maritime Hub Status
Taiwan's favorable geographic location for transshipment in Far East region is an important niche for the continued trade growth with Northeast Asia, East Asia, and Southeast Asia. Moreover, our top three national carriers rank 7th, 8th, and 12th worldwide in terms of cargo capacity, all of which have a certain degree of cargo handling capacity, and all of which operate terminals at Kaohsiung Port, thereby securing cargo sources for the Port of Kaohsiung. Therefore, notwithstanding that the transshipment status of Taiwan ports in Asia-Pacific region has gradually changed to that of a regional hub, our cargo collection capacity can still be utilized to support the development of the main shipping routes, supported by the stabilization of cargo imports and exports as well as regional trade relationship.
For the sake of maintaining long-term competitiveness, TIPC follows instructions from its superiors and continues to adopt port clusters as its concept of division of labor. Centralization of container operations avoids internal competition and improves overall operational efficiency and value, which in turn attracts foreign shippers to transit from Taiwan through a more diversified terminal operation mode, while developing into distinctive industrial chains, such as automotive logistics at Taipei Port, offshore wind power at Taichung Port, and international cruises at Keelung Port etc.