Taipei, Taiwan International Ports Corp. (TIPC), a state-owned port affairs management firm, is planning to set up a joint venture with local companies to target markets under the government's New Southbound policy, the company announced Sunday.
TIPC, which is under the Ministry of Transportation and Communications and supervises port operations in Taiwan, said it will team up with four Taiwanese firms -- Yang Ming Marine Transport Corp., Taiwan Navigation Co. T.S. Lines Co., Chunghwa Post Co. -- to establish the new company.
TIPC spokesperson Kao Chuan-kai (???) said the new enterprise will be established in mid-October and be registered in Singapore, after which it will open an office in Taipei.
In the initial stage, the joint venture will have paid-in capital of US$10 million with TIPC and Yang Ming Marine taking a 35 percent stake each, and the other three companies owning the remaining 30 percent, Kao said.
It is not the first time TIPC has worked with Yang Ming Marine, one of the largest shipping companies in Taiwan. In 2017, the two firms cooperated with Indonesian partners on a container yard in Surabaya, a port city in the Southeast Asian country.
Kao said the new company, now in the final preparatory phase, is expected to take advantage of its shareholders' experience in marine transportation as well as the logistics experience of Chunghwa Post, which runs post offices in Taiwan, to penetrate markets in countries targeted by the government's New Southbound Policy.
After President Tsai Ing-wen (???) took office in May 2016, her administration launched the New Southbound Policy, which aims to strengthen Taiwan's ties with the 10 members of the Association of Southeast Asian Nations (ASEAN) bloc, India, Bagladesh, Pakistan, Sri Lanka, Nepal, Bhutan, Australia and New Zealand in a bid to reduce economic dependence on China.
According to TIPC, the countries targeted by the New Southbound policy, in particular the 10 ASEAN countries, are growing rapidly economically.
TIPC said ASEAN is the second largest buyer of Taiwan-made goods and the second largest destination for Taiwan's investment so it is increasingly important for local marine service providers as they extend their operations overseas.
Source: Focus Taiwan News Channel