The Taiwan International Port Corp (TIPC) signed a memorandum of understanding (MOU) with the Subic Bay Maritime Authority (SBMA) in the Philippines on Monday on the transit or transfer goods at Kaohsiung Port.
The Philippines has seen phenomenal economic growth in recent years and the Subic Bay Freeport Zone, with 15 piers, is a focus for economic development by the Philippine government as it is close to Clark International Airport and the Subic Bay Freeport Zone, all of which makes Subic Bay a valuable investment target, state-run TIPC said.
Huang Yi-ming (黃一民), senior supervisor of TIPC’s Kaohsiung branch, said the Subic Bay Freeport Zone houses 1,300 companies from around the world, including Taiwanese firms Wistron Corp, Hitachi Taiwan and Tong Lung Metal Industry Co.
These companies need logistics warehouses, and the partnership agreement between the two ports could motivate more manufacturers in the zone to consolidate their products at Kaohsiung Port before shipping them to the US, elsewhere in Asia and to other nations, he said.
Subic Bay has seen 50 percent growth in cargo handled since 2013, and the SBMA has forecast growth of 30 percent this year, he said.
STBA plans to build new piers to accommodate more container ships and TIPC would assist manufacturers in investing in the construction of piers, he said.
The Philippines does not have a well-developed long-distance freight shipping business, TIPC spokesperson Stephen Liu (劉詩宗) said.
“The long-distance shipping business, particularly to the North America, has been Kaohsiung Port’s strong suit. Through Kaohsiung, one can also go on to ports in China,” he said.
Compared with ports in Hong Kong and Singapore, Kaohsiung offers competitive rates for transit goods containers, Liu said, adding that the exchange between the seaports would draw more investments in both seaports.
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