Greater Kaohsiung has moved one step closer to its vision of becoming a metals hub after Kaohsiung Port was approved as the delivery point of the London Metals Exchange (LME) in Asia this week, Taiwan International Ports Corp (TIPC, 臺灣港務公司) said yesterday.
The world’s largest non-ferrous metals exchange market chose the city as its ninth location in Asia for primary aluminum, aluminum alloy, copper, lead, nickel, tin and zinc deliveries.
The other locations are Singapore; Nagoya and Yokohama in Japan; Busan, Gwangyang and Incheon in South Korea; and Johor and Port Klang in Malaysia.
Kaohsiung Port first submitted its application to be included in the LME’s network in 2011. The bid failed because Taiwan’s tax regulations did not meet the LME’s standards.
The Ministry of Transportation and Communications then held talks with the Ministry of Finance and managed to have necessary regulations amended by the Legislative Yuan last year.
“In the future, non-ferrous metals can be traded and stored in the free-trade zones of Kaohsiung Port,” TIPC said in a statement. “The status of a metals hub would link Kaohsiung to other ports more effectively and make Kaohsiung Port a key in the supply chain and an international warehousing and trans-shipment center.”
The LME said that the logistical facilities at Kaohsiung Port ensure that the region, with its high demand for metal, can be well serviced by warehouses operating there, adding that the location will become active three months after the first warehouse is approved.