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Direct-link to boost cross-Straits trade

(Xinhua)
Updated: 2008-12-15 11:14

THE beginning of direct shipping between China's mainland and Taiwan Monday is expected to further boost trade and economic integration between the two sides.

The decision to allow ships and civilian aircraft to cross the Taiwan Straits directly ends a situation in place since 1949 where there had to be transfers via a third stop, usually Hong Kong or Macau.

Xu Lirong, executive vice president of the China Ocean Shipping Group Co, said the cost of the company's freight business related to the cross-Straits trade would drop by 30 percent thanks to direct shipping.

"Currently the additional cost for a container vessel traveling through a third place is as high as US$1 million a year," he said.

The mainland's shipping and logistics giant currently handles 200,000 standard containers between the two sides every year. It also collaborates with Taiwan shipping companies such as Evergreen and Yang Ming in international services.

"Direct shipping will undoubtedly bring new vigor to economic and trade ties between the mainland and Taiwan, which has been very close in recent years," he said.

The mainland has been Taiwan's largest trading partner since 2003, with an annual trading volume of more than US$100 billion.

Direct shipping will save 110,000 hours in travel time and US$100 million in transport costs each year, said Hu Hanxiang, chairman of the executive council of the mainland-based Federation for Shipping Cooperation Across the Taiwan Straits.

In accordance with an agreement signed between the two sides last month, the mainland will open 48 sea ports and 15 river facilities, while Taiwan will open 11 harbors for direct shipping.

"This will definitely improve the efficiency of logistic services and manufacturing sectors on both sides while lowering costs," said Hu. "It is especially significant as the mainland and Taiwan join hands to cope with the global economic downturn."