Free Trade Zones (FTZs) Attract Widespread Corporate Interests

　　The government’s promotion of the establishment of free trade zones in Taiwan is drawing widespread attention from the private sector. The Cargo Distribution International Taiwan Ltd., the ET Internet Technology Corp. and the Kaochung Stevedoring Co. have already received permission to operate within Kaohsiung Free Port, and more than 10 other firms are expected to submit applications soon. Obviously, the establishment of FTZs can serve the needs of companies in Taiwan well.

　　Chairman Wang Woo Hsiung of the Kaochung Stevedoring Co., which provides loading and unloading services for bulk carriers, says that he wants his company to be a Kaohsiung FTZ enterprise primarily because the free trade zone offers convenient warehousing and logistics services including the free flow of commodities, cargo consolidation, rearrangement, packaging, repair, processing, and transshipment, thus facilitating the development of business. Kaohsiung is a fine natural harbor, he explains, with a moderate climate and outstanding port conditions, comprehensive facilities, a vast hinterland, and an abundant supply of cargo, making it supremely suitable for the development of a free trade zone. In the future, Kaochung will cooperate with prominent overseas shippers and internationally known logistics operators in promoting the transshipment business.

　　Chairman Adam Hung of the Tonglit Logistics Co., which specializes in whole-car logistics and the bale packing of auto parts, reports that his company has five plants within the Port of Taipei. In two short years, they have achieved operating revenues of NT$60 billion and the figure is expected to rise to NT$70 billion this year. Hung expects that the operating environment will become even better once the Taipei Free Trade Zone begins operating, integrating logistics from all over the world and providing even more effective and timely value-added transshipment. Tonglit will submit its application to become a Taipei FTZ enterprise in July so as to gain access to the tax breaks, low operating costs, and other incentives available there, and thereby to generate yet better profits.

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