The Dubai ports operator DP World will help to expand Taiwan's Kaohsiung Port in an effort to increase its Asian portfolio.
The company signed a memorandum of understanding with the state-run Taiwan International Ports Corporation (TIPC) to develop the port’s seventh terminal.
TIPC plans to expand the port to serve the import and export needs of southern Taiwan, and wants it to become a global shipping hub by 2040, according to its website.
Rashid Abdulla, DP World’s senior vice president and managing director for the Asia Pacific region, said the port required an upgrade before it could handle international business.
“It has enough container capacity to serve immediate growth in Taiwan, but does not yet have the capability to attract new growth resulting from the ultra large container vessels added to line-haul services,” he said.
DP World’s group chairman and chief executive, Sultan Ahmed bin Sulayem, said the firm chose locations that were in demand as part of a long-term plan. “Our strategy in developing in strategic locations where our customers want us to be, serving global trade and being able to handle the new generation of ultra large vessels, shows how we are investing in the future, translating our vision into reality,” he said.
The company is optimistic for the remainder of the year with its expansion plans, after announcing this week that gross container volumes had moved up 2.5 per cent in the first half of the year on a reported basis, compared with the same period last year.
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