The government plans to spend NT$400 billion (US$12 billion) in the next four years building railway lines and expanding ports to improve the nation's public infrastructure, according to the transport ministry's budget.
Spending on new railway lines and mass-transit transit (MRT) networks will cost about NT$211.3 billion over four years, according to a budget paper obtained by reporters. About one-third of the budget, or NT$133.9 billion, will be to build new berths and improve the facilities in five ports in Kaohsiung and Keelung.
Taiwan's economy may expand 5.9 percent this year, according to a government forecast, the fastest annual pace since the 1997 Asian financial crisis. Demand from China, Japan and other markets are helping AU Optronics Corp (
"The spending plan will help stimulate" economic growth, said Tu Jin-lung (杜金龍), who oversees the equivalent of US$6 million for private clients at Taipei-based Grand Cathay Investment Services Co (大華投信), a unit of Grand Cathay Securities Corp (
"Taiwan's steel and cement industries will benefit" as the infrastructure projects boost demand for the building material, Tu said.
An improved transportation infrastructure will enable traveling to be speedier, giving bolstering the movement of foodstuff and tourists, Tu said.
The government has allocated about 5.6 percent of next year's expenditure budget to enhance the nation's transport network. The government is also enhancing ports to cut shipping time, attract freight lines and compete with the ports of Hong Kong, Shanghai and South Korea's Busan.
Taiwan Cement Corp's (
In addition to the new projects, Taiwan is also spending NT$461 billion through government spending and private funds to build a high-speed rail line from the north to the south.
"We're linking the transport systems of major cities" to make commuting easier, Transport Minister Lin Ling-san (
Taiwan's so-called bullet train service, due to begin operating by the end of October next year, can travel at an average speed of 200kph and cut traveling time between Taipei and Kaohsiung by two-thirds to 90 minutes.
The government plans to build a new MRT network in Kaohsiung City, adding to the nation's sole metro system in Taipei. Taiwan Railway, the 117-year-old network that links the nation's north and south will be enhanced to make it into a metro system, Lin said.
Investors will also be invited to take part in a NT$21.6 billion project to build a rail line connecting Taipei with the northeastern resort town of Chiaohsi, Lin said.
Other projects include a highway along the western coast and roads linking CKS International Airport with neighboring towns.
The government will also tap private funds for a NT$12 billion container terminal in Kaohsiung port, with the government spending an additional NT$23.2 billion acquiring land, Lin said.
"Kaohsiung port will be busier in the future," he said. "We can't wait until the port is already too crowded."
The government has been trying to promote Kaohsiung as a trans-shipment port for the region, as its deep waters can accommodate larger ships than most Chinese ports.
"Containers from the China can be placed in larger ships at Kaohsiung," Lin said.
The port is now designated as a ``free port,'' where tax incentives are offered and no visas are needed, he said.
The government has also been calling on the Chinese authorities to talk on lifting the ban on direct transportation links with China to make the Kaohsiung port more attractive to shipping lines.
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
Taiwanese manufacturers have a chance to play a key role in the humanoid robot supply chain, Tongtai Machine and Tool Co (東台精機) chairman Yen Jui-hsiung (嚴瑞雄) said yesterday. That is because Taiwanese companies are capable of making key parts needed for humanoid robots to move, such as harmonic drives and planetary gearboxes, Yen said. This ability to produce these key elements could help Taiwanese manufacturers “become part of the US supply chain,” he added. Yen made the remarks a day after Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) said his company and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) are jointly
United Microelectronics Corp (UMC, 聯電) expects its addressable market to grow by a low single-digit percentage this year, lower than the overall foundry industry’s 15 percent expansion and the global semiconductor industry’s 10 percent growth, the contract chipmaker said yesterday after reporting the worst profit in four-and-a-half years in the fourth quarter of last year. Growth would be fueled by demand for artificial intelligence (AI) servers, a moderate recovery in consumer electronics and an increase in semiconductor content, UMC said. “UMC’s goal is to outgrow our addressable market while maintaining our structural profitability,” UMC copresident Jason Wang (王石) told an online earnings
MARKET SHIFTS: Exports to the US soared more than 120 percent to almost one quarter, while ASEAN has steadily increased to 18.5 percent on rising tech sales The proportion of Taiwan’s exports directed to China, including Hong Kong, declined by more than 12 percentage points last year compared with its peak in 2020, the Ministry of Finance said on Thursday last week. The decrease reflects the ongoing restructuring of global supply chains, driven by escalating trade tensions between Beijing and Washington. Data compiled by the ministry showed China and Hong Kong accounted for 31.7 percent of Taiwan’s total outbound sales last year, a drop of 12.2 percentage points from a high of 43.9 percent in 2020. In addition to increasing trade conflicts between China and the US, the ministry said
RSS