Thu, Oct 16, 2003 - Page 10 News List

HP launches logistics initiative

TAILINK LOGISTICS The computer giant plans to make Taiwan its main shipping center, bringing products from Shanghai to Taipei and from there, to the world

By Jessie Ho  /  STAFF REPORTER

Hewlett-Packard Co yesterday officially unveiled its new project called "Tailink Logistics," aiming to make Taiwan the computer giant's logistics base, from which it can transport HP products made in Shanghai to the global market.

The "Tailink Logistics" project is designed to increase efficiency on delivery, a company executive said yesterday at a launching ceremony in Taipei.

"The program is extremely important to our success, as we have many partners located here and mainland China," said Duane Zitzner, executive vice president of HP Personal System Group. "The insufficient cargo loads in Shanghai can no longer meet our need."

Under the project, HP will form a partnership with four local logistics companies -- namely Evergreen Marine Corp (長榮海運), EVA Airways Corp (長榮航空), China Airlines Co (華航) and Far Eastern Air Transport Co (遠東航空). These firms will transport HP's products made in the area surrounding Shanghai to Taiwan -- mainly Taipei -- via Hong Kong or Macau, then deliver them to the global market.

HP estimates that the project will cut transportation time from over 12 hours to 10 hours on average. Rosemary Ho (何薇玲), vice president and country managing director for HP Taiwan, refused to reveal the amount of transport expenses the company will save after adopting the new route. Ho also refused to disclose the volume of goods to be delivered via the link.

"We hope other major companies employ the distribution model as well, as it will achieve both time and cost efficiency, and help to raise Taiwan's position in the global electronic-value chain, as the government has been promoting," Ho said.

When asked if HP would lobby for direct cross-strait traffic to save more transportation resources, Ho said the company will not get involved with political issues and will operate under whatever government policies are in place.

Last month, the government proposed allowing indirect chartered cargo flights between the two sides of the Strait. The plan is aimed to facilitate local carriers' ability to transport goods via Hong Kong or Macau without changing planes. The proposal was rejected by the Chinese authorities late last month.

Vice Premier Lin Hsin-i (林信義) welcomed the "Tailink Logistics" project yesterday, saying Taiwan has superior geographic advantages which could allow it to become a pivotal link in the Asian supply chain.

"It takes less than two hours from Taiwan to six major ports in the Asian-Pacific region by air, and about 53 hours by sea," Lin said. "Besides, the government is pushing forward the establishment of free-trade ports, which will facilitate global logistics enterprises."

IBM, the world's largest information technology firm, said it has no comment on HP's new logistics plan, and has no plan to follow the delivery model.

"We'll still ship out goods from the manufacturing country as we do now," said Lee Li-fen (李立芬), a spokesperson for IBM Taiwan.

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