2014-12-05
With increasing free trade and globalization, logistics has become an essential factor behind a country’s drive to increase its industrial competitiveness. In Taiwan, logistics is one of the top ten key service industries, and, according to statistics, has a total annual output that exceeds NT$ 1.4 trillion. According to the Logistics Performance Index data, or LPI, published by the World Bank in 2014, Taiwan ranks 19th out of 160 global economies and behind only Singapore, Japan, and Hong Kong in Asia. Through the implementation of strategies such as development of cold chain logistics, integration of supply chains, and enhancing logistics services, the government has led the way in innovation and upgrading for the logistics industry, forging Taiwan into a value-added hub in the Asia-Pacific region.
In order for businesses to have a better understanding of international logistics market trends and to share the results of related advisory strategies, the Department of Commerce, Ministry of Economic Affairs (MOEA), hosted the 2014 Annual Logistic Strategy Combined Results Presentation at NTUH International Convention Center, which attracted industry players, academia, and research institutions. As part of the presentation, Chairman of La Kaffa International Co., Ltd., Mr. Wang Yao-Hui, was invited to give a speech concerning “How La Kaffa Sees Strategic Global Brand Development from the Perspectives of Logistics Development.” Mr. Li Cheng-Yi, general manager of HCT Logistic, also gave a speech on “Building an O2O Trading and Cold Chain Logistics Team.”
The demand of logistics, especially for cold chain logistics, has increased dramatically, due to rapid growth in e-commerce and the positive impact of ECFA signed by Taiwan and Mainland China.. The Department of Commerce has been driving the development and internationalization of cold chain logistics, with a focus on “cross-strait cold chain” and “intercity cold chain distribution processes”. Transportation modes have been expanded to include air and intercity transportation, in addition to maritime transportation. There is also continuing development of cold chain logistics technology integration and application, with collaboration partnerships struck with companies such as China Airlines, Chunghwa Post, HCT Logistics, and others to enhance the international logistics service quality for low temperature products, and delivering over NT$1 billion in overseas sales. The Cross-strait Cold Chain Logistics Technology and Service Alliance has also successfully acted as an intermediary between cross-strait cold chain businesses and organizations, facilitating a total of 39 signed memorandums of understanding and agreements. This has spurred new business opportunities for the logistics service industry of Taiwan and other industries, and resulted in approximately NT$ 1.76 billion of investment and procurement.
Domestically, in response to the demand for cold chain logistics in densely populated cities, the department has helped Tokyo Property Management and Uni-President Cold-Chain Corp. to set up low temperature foods supply service demonstration systems. These systems integrate the resources from ten food ingredient suppliers, restaurants, and food processing plants, in collaboration to promote low temperature product traceable logistics services. At the same time, controlled temperature storage equipment were used at the end of distribution channels for support services, solving temporary storage issues when low temperature products are sent to a community. The investment for advancement of logistics services and equipment has reached NT$ 40 million.
The development of Taiwan Free Economic Pilot Zones is a key project that the government is working on. This year, in order to maximize the benefits of ECFA to establish a transnational logistics model and to utilize the advantages of the Taiwan Free Trade Zone (FTZ), eight companies strengthened their transnational logistics management by incorporating value-adding service functions under government advisory. In addition, the government coordinated with the global business development strategies of Taiwanese companies, attracted two foreign companies to invest in the FTZ, and established distribution and processing centers. This resulted in over NT$ 4 billion worth of shipments from foreign companies to the FTZ, over NT$ 2 billion of logistics outsourcing products, and increased the revenue from logistics services to over NT$ 400 million.
At the same time, the government takes a proactive stance in upgrading the role and relevance of logistics companies in the overall industry model, driving Taiwan to become the “production and distribution center for niche products and key components.” The results of these efforts were stellar. This year, nine companies were assisted in the integration of supply and demand in supply chains and in the application of logistic model optimization, including Transworld Transportation Co., Ltd. and Jinjeng International Logistics Co. Ltd. Six companies were assisted in Academia-Industry Cooperation logistic planning, including Formosa Technologies Corp. and Ares International Corp. Two companies, ASE Test Inc. and Yuan Tay Food Machinery Co., Ltd., received personnel training. Furthermore, private investors invested around NT$ 220 million, increasing overseas sales of products and key components purchased in Taiwan to NT$ 2 billion.
MOEA has stressed on Taiwan’s geographical advantage at the center of the Asia-Pacific region. Leveraging on the benefits derived from the signing of ECFA, as well as Taiwan’s leading technology and supply chain management service standards in the logistics industry, MOEA will continue to promote the upgrading and innovation of the industry and to assist the industry in building an efficient global business chain. This will help to develop Taiwan into a value-added hub of the Asia-Pacific region and assist Taiwanese businesses in their Asia operations and global deployment strategies.
Department of Commerce, Ministry of Economic Affairs, Spokesperson: Deputy Director Chen Mi-Shun
Contact Number: 02-2321-2200 ext.323, Cell Phone: 0939-945897
E-mail: mschen@moea.gov.tw
Contact Person: Section 8 Acting Chief Li Yung-Yi
Contact Number: 02-2321-2200 ext.280, Cell Phone: 0937-491885
E-mail: yylee@moea.gov.tw
Source： Department of Commerce, MOEA
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