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Government aims to promote logistics industry

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At a July 28 seminar held by the Ministry of Economic Affairs (MOEA) at New Taipei City's Port of Taipei, Premier Sean Chen said that the government will work closely with the logistics industry and use various methods and resources to help it attain continued growth.

"Taiwan has only 23 million people; international trade is therefore essential to its continued economic growth; and the logistics industry is a core pillar of international trade," Chen stressed.

Besides exchanging views with the many local logistics industry representatives at Saturday's seminar, the premier also visited Tonglit Logistics Co. Ltd. and Taipei Port Container Terminal Corp. to understand vehicle logistics services and automatic container operations in the free trade port.

Chen noted that the government will host five seminars with the business sector next month to collect industry suggestions.

"Logistics is not a new business. It dates back to early human history," the premier said, adding that the term has acquired new meanings over the years as it has incorporated concepts such as transportation, stevedoring, processing, warehousing and the circulation of information, making the industry ever more valuable.

The Executive Yuan approved on May 28, 2012 an allocation of NT$10 billion (US$332.23 million) from the National Development Fund for investment in collaboration with the MOEA in strategic service industries such as international logistics services, information services, Chinese-language e-commerce, digital content, cloud computing, the exhibition industry, globalizing local gourmet foods, health promotion and health care services. The Executive Yuan expects the outlay to increase employment opportunities, augment service exports and help businesses raise capital.

The MOEA stated that there are some 12,000 Taiwanese logistics businesses, and together, they earn over NT$1.4 trillion (US$33.22 billion) in annual revenue and employ about 250,000 people.

Given Taiwan's reliance on external trade, the ministry expects cross-strait and international logistics to drive robust growth in Taiwan's economy. Moreover, the industry is regarded as a major job creator and has been named one of the nation's 10 key service industries for promotion and development.

As international logistics involves the Ministry of Transportation and Communications, Ministry of Finance, MOEA and other ministries, major strategies include deregulation, expanding the application of information technology and personnel training. The government will also help businesses expand into large-scale operations and assist in cross-industry integration.

The MOEA has been promoting e-logistics, developing new logistics technologies and promoting their use, and supporting competitiveness-enhancing changes in business management and operations for some time. In the long term, it also hopes to incorporate the resources of the Asia-Pacific region, expand overseas markets and strengthen collaborations with other countries.

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