Lin calls for end to Taiwan/mainland China trade restrictions
A leading executive of Taipei-based Evergreen Group has called for faster action in relaxing restrictions on shipping links between mainland China and Taiwan.
Speaking Tuesday at the World Shipping Summit in Shanghai, Lin Sun-San, vice group chairman of Evergreen, said existing trading practices, including vessels being forced to travel via a third neighboring country, only serve to increase costs.
“We estimate that transportation costs are increased by approximately $8 per TEU for liner vessels and $10,000 to $20,000 per sailing for tramp ships. The increase in transit time per sailing is 12 to 24 hours,” Lin said.
The Taiwanese government established the Offshore Shipping Center to allow shipping lines to transship mainland China export and import cargoes over Kaohsiung. However, such services are not permitted to carry export cargoes originating in Taiwan destined for mainland China, or vice versa.
Evergreen said the container volume handled through the Offshore Shipping Center was 674,000 TEUs in 2004.
“The total trade amount generated across the Straits increased by over $60 billion in 2004, and it is very possible that it will continue to rise … If the situation continues unchanged, it will be unable to meet the actual trade growth and, quite obviously, it will become a barrier to both sides’ trade development,” said Lin.
While noting a more serene political climate in which political representatives from both sides of the Straits have non-official contact, Lin urged an immediate resumption of negotiations. “I think it is now the right timing for both sides to shake hands; to review and improve associated shipping operations across the Straits. Enhanced economic cooperation is extremely valuable when resolving political confrontation across the Straits,” he said.
He remarked that carriers on both sides suffer from rules that do not permit Taiwanese flag vessels to call at ports in mainland China, or Chinese-flagged ships in Taiwan, causing fleets from both sides to switch tonnage to third-country flags.
“We would suggest giving permission to vessels registered in Taiwan or mainland China to call at all open ports across the Straits. We also hope Taiwanese carriers can be entitled to the same rights as Chinese carriers, and that will enable Taiwanese carriers to operate both coastal and inland river transportation businesses within mainland China,” he said.
“So that we may reduce operational costs and enhance ease of operations, we desperately hope that both sides across the Straits can sign an agreement exempting marine income tax for both sides and, in addition, permit mainland China- and Taiwan-based carriers to set up their own branch offices on either side,” Lin said.