Once the nation's largest and most important gateway during the early 18th century and the Japanese colonial period, Keelung Harbor is striving to regain its old glory by transforming itself into the nation's first free trade port.
The effort became more urgent after Kaohsiung Port took over its role in the 1990s.
"We hope to revive the ancient port with incentives provided by the free trade port mechanism," said Lu Chan-yu (盧展猷), director of the port business department in the Keelung Harbor Bureau, while pointing out the areas that are designated to be the free trade zone.
An ambition to restore Keelung Harbor's prosperity prompted bureau officials to speed up preparatory work after the Statute Governing the Establishment and Management of Free Trade Ports (
According to the bureau's plan, about 63 hectares of land will be turned into a free trade zone, encompassing Dock 11 to Dock 33 in the west bank, and Dock 6 to Dock 22 in the east bank.
Within the zone, companies can undertake a wide range of businesses, including consolidation of cargo, minor assembly, repacking, warehousing, packaging, logistics and other value-added services that are free of customs, commodity tax, business tax, port dues and wine and tobacco tax.
The bureau estimates that the free trade port will bring in over NT$94 million, create 2,100 jobs and have an annual output value of NT$600 million for companies in the port.
As soon as the harbor bureau receives permission from the Ministry of Transportation and Communications, it will hold public bidding for companies interested in operating the free trade zone, Lu said. United Logistics International Co (
Michael Tung (董明吉), vice president of United Logistics International, acknowledged that the company is drafting a bid proposal.
"We believe that the free trade port will bring new life to the old port and the city," Tung said.
Tung, a native of Keelung who has 30 years' experience in the logistics industry, said the greatest advantage of Keelung Harbor is its geographic location.
Keelung is at the crux of main shipping routes across the Pacific, as well as to Northeast Asia and Southeast Asia. With metropolitan Taipei and Hsinchu Science Park nearby, companies frequently use the harbor to ship goods, saving both costs and time.
The harbor's handling volume peaked in 1995, when 2.17 million TEU (twenty feet equivalent unit) containers passed in or out of the port, according to the bureau's statistics. The number declined to 1.67 million TEU containers in 1999 but has slightly rebounded since then.
For the first eight months of the year, the harbor handled 1.38 million TEU containers, up 8.85 percent from the same period last year. As the economy has significantly recovered, the bureau hopes to reach 2.12 million TEU containers this year, Lu said.
Tung said if his company wins the bidding, he will target high-tech companies that import bulk and heavy raw materials or semi-finished goods via sea routes. These companies usually add value to the goods in Taiwan and then export them by air.
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