Taiwan Today

The government has earmarked NT$22.78 billion (US$703.91 million) to further promote the Taoyuan Aerotropolis Project next year, officials of the Ministry of Transportation and Communications said Sept. 29. The money will be spent on building a relay transit system for the aerotropolis. The officials stressed the importance of transportation infrastructure to business interests in the aerotropolis. According to the MOTC’s Civil Aeronautics Administration, the focus of the government’s efforts in developing the project is to promote the logistics industry. The ministry plans to set up a 2,000-hectare free trade zone near the existing Farglory Free Trade Zone in the aerotropolis. The MOTC will establish a state-run international airport park company in November 2010, with one of its major tasks being to develop and operate the new FTZ, the officials said. The Taoyuan Aerotroplis Project was a major policy during Vice Premier Eric Liluan Chu’s term as Taoyuan County magistrate. Premier Wu Den-yih has instructed the vice premier to oversee the aerotropolis’ operations. A task force within the Ministry of the Interior will start reviewing related proposals Oct. 1. MOI officials said that they hoped the review work could be completed by the end of the year, when the results will be submitted to the MOI’s regional planning committee for approval. If everything goes as planned, the Taoyuan County Government will be able to start business solicitation early next year. CAA officials said that the Taiwan Taoyuan International Airport would be transferred from the Civil Aviation Business Fund to the new airport park company in November 2010. The ministry’s appraisal shows that the net assets of the airport, including office buildings and equipment, are valued at NT$21.3 billion. The MOTC will transfer these assets to the new airport company as investment. The MOTC will allot NT$1.09 billion to the new company in 2010. The ministry expects to see the business generate NT$1.8 billion in revenues, with expenses of NT$1.4 billion in its two months of operations next year. CAA officials revealed that the government will offer incentives and favorable customs clearance and safety inspection measures to facilitate smooth and speedy processing and distribution of cargo and goods within the new FTZ. The reduced warehousing costs will attract businesses to establish processing facilities in the area. Compared with its neighboring countries in Asia, Taiwan holds an edge in the electronics and information and communication technology sectors. The new FTZ will differentiate itself from the Farglory FTZ in that it is set to become “a component distribution center” for major ICT firms, the officials explained. (SFC-THN)